White whales-of-angel-investing

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Like Captain Ahab, we

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White whales-of-angel-investing

  1. 1. “Moby-Dick; or, The WhiteWhales of Angel Investing” In Herman Melville’s “Moby-Dick”, Captain Ahab was chronicled on his relentless pursuit of the white whale, “Moby- Dick”. To his eventual demise, Ahab pursued the “White Whale”… Are angel investors, other early stage investors and even entrepreneurs, equally possessed in the chase of their “White Whales”? “Call me Ishmael” and let’s pursue some of the “White Whales” of early stage investing… “White Whales of Angel Investing” ©2011 Tech Coast Angels
  2. 2. A White Whale: “Disruptive Technology” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  3. 3. A White Whale: “Disruptive Technology” Clayton Christensen’s book “Innovator’s Dilemma”: …really becomes the “Investor’s Dilemma”. Many companies claim “disruptive technology”… …few companies deliver “disruptive technology”. Do “disruptive due diligence”: research technology and market – become comfortable with assumptions. “White Whales of Angel Investing” ©2011 Tech Coast Angels
  4. 4. A White Whale: “No Competition” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  5. 5. A White Whale: “No Competition” There’s always other fish in the ocean. If not direct competition, a “substitute”? Investors should welcome competition… …it shows there is an existing market. “White Whales of Angel Investing” ©2011 Tech Coast Angels
  6. 6. A White Whale: “The IPO” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  7. 7. A White Whale: “The IPO” Initial Public Offerings are very few. Most start-ups won’t scale to IPO. Merger or acquisition: most likely exit. Focus on business model and growth. “Great Exits” find “Great Companies”. “White Whales of Angel Investing” ©2011 Tech Coast Angels
  8. 8. A White Whale: “The 100X return” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  9. 9. A White Whale: “The 100X return” Most exits are small; failure is common. Investment portfolio increases odds. Pursue great teams, big ideas, big markets. This “whale” can be elusive, but then again…“Lightning does strike somewhere.” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  10. 10. A White Whale: “Good money, after Bad…” “White Whales of Angel Investing” ©2011 Tech Coast Angels
  11. 11. A White Whale: “Good money, after Bad…” Bad investments generally remain “bad”. This “Whale” consumes capital ($). Remove emotion, re-evaluate business. Ahab’s lesson: Mistakes happen… … learn from them, don’t repeat them. “White Whales of Angel Investing” ©2011 Tech Coast Angels
  12. 12. Who are the Tech Coast Angels? A is for AngelTech Coast Angels, www.techcoastangels.com, the largest angel investornetwork in the United States, provides funding and guidance to moreearly‐stage, high‐growth companies in Southern California than any other An angel investor is typically ainvestment group. Since its inception in 1997, TCA members have focused onbuilding valuable companies, personally invested more than $100M, andhelped portfolio companies attract more than $1B in additional capital, mostly wealthy private investor whofrom venture capital firms. invests their own money inTCA members give companies more than just capital; they also providecounsel, mentoring and access to an extensive network of potential investors, private companies calledcustomers, strategic partners and management talent.TCA has more than 300 members, including its venture capital affiliates, in five “startups”.networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbaraand the Inland Empire. “White Whales of Angel Investing” ©2011 Tech Coast Angels

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