[PREMONEY 2013] Elad Gil
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The document discusses how to be a successful angel investor. It begins by introducing the author as a serial entrepreneur who has invested in companies like AirBnB, Square, and Stripe. It then outlines ways for angels to lose money, such as being momentum-driven, short-sighted, or unhelpful to founders. The document recommends angels seek gaps in capital, expertise, or industry focus. It also notes trends making valuations high, a Series A crunch, and increasing transparency in deals. The author concludes by saying whenever attractive people enter an industry, it may be overheating.
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[PREMONEY 2013] Elad Gil
- 1. @eladgil The Best Way To End Up With $1 Million As An Angel? Start with $2 Million blog.eladgil.com
- 2. ABOUT ME Serial entrepreneur (last company acquired by Twitter) Started mobile team @Google Invested in AirBnB, Square, Stripe, Pinterest, Optimizely....
- 3. AGENDA 1. How to loose money as an angel 2. Good areas for angels 3. Trends
- 4. HOW TO LOSE MONEY AS AN ANGEL
- 5. HOW TO LOSE MONEY AS AN ANGEL Be momentum driven
- 6. HOW TO LOSE MONEY AS AN ANGEL Be momentum driven “Who is in” is usually not a good indicator
- 7. HOW TO LOSE MONEY AS AN ANGEL Be momentum driven “Who is in” is usually not a good indicator Best investments often contrarian at the time
- 8. HOW TO LOSE MONEY AS AN ANGEL Be momentum driven “Who is in” is usually not a good indicator Best investments often contrarian at the time Party rounds may actually be a bad indicator
- 9. HOW TO LOSE MONEY AS AN ANGEL Be momentum driven "The companies I have traditionally seen do best over the long term had lead investors for their seed rounds" - Keith Rabois
- 10. HOW TO LOSE MONEY AS AN ANGEL Be short sighted
- 11. HOW TO LOSE MONEY AS AN ANGEL Be short sighted Has social internet suddenly become a bad market?
- 12. HOW TO LOSE MONEY AS AN ANGEL Be short sighted 2004 2006 2007 2010 2010 20112009 2009 Has social internet suddenly become a bad market?
- 13. HOW TO LOSE MONEY AS AN ANGEL Be short sighted 2004 2006 2007 2010 2010 20112009 2009 “Social is over” Has social internet suddenly become a bad market?
- 14. HOW TO LOSE MONEY AS AN ANGEL Be a jerk
- 15. HOW TO LOSE MONEY AS AN ANGEL Be a jerk JFK: Don’t ask for updates, ask how you can help
- 16. HOW TO LOSE MONEY AS AN ANGEL Be a jerk Be quick on deal docs, don’t get in the way JFK: Don’t ask for updates, ask how you can help
- 17. HOW TO LOSE MONEY AS AN ANGEL Be a jerk Be quick on deal docs, don’t get in the way JFK: Don’t ask for updates, ask how you can help Sh*t happens, don’t freak out
- 18. HOW TO LOSE MONEY AS AN ANGEL Be a jerk Be quick on deal docs, don’t get in the way JFK: Don’t ask for updates, ask how you can help Sh*t happens, don’t freak out Reputation matters
- 19. HOW TO LOSE MONEY AS AN ANGEL Some inevitable behavior
- 20. HOW TO LOSE MONEY AS AN ANGEL Some inevitable behavior Poor judgement
- 21. HOW TO LOSE MONEY AS AN ANGEL Some inevitable behavior Get squeezed out of rounds by VCs Poor judgement
- 22. HOW TO LOSE MONEY AS AN ANGEL Some inevitable behavior Investor unfriendly exits: Corp Dev incentives Get squeezed out of rounds by VCs Poor judgement
- 23. HOW TO LOSE MONEY AS AN ANGEL Portfolios Assume you will lose all your money Rule of thumb need min 10-12 companies in portfolio Follow ons?
- 24. GOOD AREAS FOR ANGELS
- 25. GOOD AREAS FOR ANGELS Seek Gaps
- 26. GOOD AREAS FOR ANGELS Seek Gaps Capital gap: $500K to $1M seeds; Series A
- 27. GOOD AREAS FOR ANGELS Seek Gaps Help gap: Hands on lead Capital gap: $500K to $1M seeds; Series A
- 28. GOOD AREAS FOR ANGELS Seek Gaps Help gap: Hands on lead Industry gap: Bio-informatics, Hardware.... Capital gap: $500K to $1M seeds; Series A
- 29. GOOD AREAS FOR ANGELS Seek Gaps Help gap: Hands on lead Industry gap: Bio-informatics, Hardware.... Capital gap: $500K to $1M seeds; Series A Differentiation gap: What you uniquely bring
- 30. GOOD AREAS FOR ANGELS Be opportunistic
- 31. TRENDS
- 32. SUCCESSIVE WAVES OF CAPITAL KEEP VALUATIONS HIGH
- 33. SERIES A CRUNCH IS REAL
- 36. RISE OF NYC (AND SF)
- 37. ENTREPRENEURSHIP VIEWED AS DE-RISKED
- 38. ENTREPRENEURSHIP VIEWED AS DE-RISKED “If I don’t get into YC I won’t leave my job”
- 39. ENTREPRENEURSHIP VIEWED AS DE-RISKED People assume they can exit (most can’t) “If I don’t get into YC I won’t leave my job”
- 40. ENTREPRENEURSHIP VIEWED AS DE-RISKED “If I don’t get into YC I won’t leave my job” People assume they can exit (most can’t) Whenever good looking people enter an industry....