9 Rules of Angel Investing!
All you need to know about Angel Investments & Angel Networks
TEB Angel Investment Platform
Adana | 5 December, 2014 Mehmet Subaşı | Vodaco
￼Most of angel investments could end up with disappointment; but your experience might not end like this.
are not systematically rational,
...they make decisions for emotional reasons
don’t have much knowledge on where they invest,
... they base their decisions on shaky premises
...they are quick to see cause and effect where there may be none
Source: Daniel Kahneman and Vernon Smith won the Nobel Prize in Economic Sciences for their research, conducted independently, into how individuals make economic decisions. – Knowledge @ Wharton - 2002
￼￼Before entering the Angel Investing World - Rules you should know!
1 ￼Know your goal!
& know the product
Knowledge | Returns | Philanthropy | Respect | Networking
￼2 Angel Network is a must!
minimize your risks
by an angel network Reach | Selection | Legal | Growth
3 ￼Don’t put all your eggs into same basket!
- max. %10 of your assets
- min. 6 deals, ideal 15 deals
￼￼When selecting a firm to invest - Rules you should know!
￼4 Don’t expect a professional firm!
- clear planning & support process
- governance(for a statup)
￼5 Realize what is on the table!
- stage? idea, MVP/MLP, in operation
- valuation done (even quick & dirty) by expert
- read the termsheet, & legal agreements
- financials: burn rate, kpi’s, milestones, goals
6 Know your team!
& team dynamics
folks you like most or have the best energy are not necessarily the best choice
When supporting a firm to grow - Rules you should know!
￼7 Don’t let your support turn into a burden!
- leave the entrepreneur empowered
- proceed with lead investor
- attention to the emotions; do not upset entrepreneurs
8 ￼Your role after investment; Not questioning, but providing answers
“don’t be an owner, but a mentor”
- do trust, but don’t avoid the controls
- support; find customers, provide market
￼9 Be patient! “the average overnight
success takes four years”
- speed is everything, fail fast
- but know where to be patient
- don’t consider your investment as a liquid asset
￼Keep in mind...
1 Don’t patronize, be a mentor
2 Don’t expect short term returns or guaranteed earnings
3 Don’t evaluate small teams, as big corporations
￼I hope the presentation was valuable for you. Thank you for yor time...
to download the presentation: slideshare.net/msubasi
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