AngelEd_Andrey Shirben_Angel Investing
- 1. www.SYD.vc HOW TO INVEST IN TECHNOLOGY BASED STARTUPS Andrey Shirben @ashirben @SYDVentures
- 2. WHAT DO WE INVEST IN? Mining Real Estate Finance Tech Traditional Not Really “Safe” Hell No ROI Binary Term 7-10 years Avg. Investment 10K-10M Portfolio Share ??? Andrey Shirben - SYD Ventures 2
- 3. WHY TECH? • Investing in Tech is usually more about investing in people rather than in ideas • While it’s a high-risk investment – it can generate a higher upside (when it’s successful of course) • Making a real contribution to the world of science/technology Andrey Shirben - SYD Ventures 3
- 4. A GROWING SECTOR Andrey Shirben - SYD Ventures 4
- 5. SAY GOODBYE TO YOUR MONEY The healthiest approach for tech investments Andrey Shirben - SYD Ventures 5
- 6. THE TEAM • Most valuable part of a start-up company • Can make/brake the idea • Need to be highly motivated, hungry for success & ready for some shifting • Experience is overrated Andrey Shirben - SYD Ventures 6
- 7. THE PRODUCT (RISK ANALYSIS) • • • • Why? What’s the pain? What’s the business model? Is the market big enough? Is there enough marketing budget? Andrey Shirben - SYD Ventures 7
- 8. BE CAREFUL OF: • • • • Hockey Stick Graphs Solutions to non-existing problems Viral promises - it’s not that easy… Do your own market research – ask around, consult with people that understand the specific industry Andrey Shirben - SYD Ventures 8
- 9. DON’T BE SCARED OF: • Young, inexperienced team – most likely they will do anything to prove themselves • Technology – technical risk can typically be handled, while market mismatch can not… • Lack of short term revenue • In short - follow your instinct Andrey Shirben - SYD Ventures 9
- 10. WHEN TO INVEST? • • • • Pre seed Seed Round A Round B Pro’s & Con’s of investing early vs. later Andrey Shirben - SYD Ventures 10
- 11. VALUATION • No one actually knows • Traditional methods surely don’t work • Whatever you’re willing to pay 1,000,000 Andrey Shirben - SYD Ventures 11
- 12. INVESTOR’S APPROACH • • • • Think about the best interest of the company Respect the entrepreneurs Aim for the long term Don’t spend much time minimizing the downside Andrey Shirben - SYD Ventures 12
- 13. THE PORTFOLIO APPROACH • • • • • The roulette rule Let statistics work for you, not against you Vertical diversification Geographical diversification Stage diversification Andrey Shirben - SYD Ventures 13
- 14. “NEVER IGNORE A GUT FEELING, BUT NEVER BELIEVE IT IS ENOUGH...” (ROBERT HELLER) Andrey Shirben Andrey@SYD.vc @ashirben @SYDVentures www.SYD.vc