David Verrill and the Angel investing model and process for early stage financings

Summary

In this conversation, Jothy Rosenberg interviews David Verrill about angel investing in startups. They discuss the role of angels, the evolution of angel investing, and the benefits of a fund structure. They also touch on the importance of supporting first-time CEOs and the criteria for making successful investments. David shares his passion for sports and spending time with family, and Jothy reflects on the importance of grit in the startup world.

Takeaways

• Angel investing has become a significant segment of the investment ecosystem in the last decade, with the number of angel groups and individual angel investors increasing.
• A fund structure for angel investing offers benefits such as shared ownership in portfolio companies, consistent access to capital, and the ability to provide ongoing support to companies.
• Supporting first-time CEOs involves helping with day-to-day decisions, providing strategic advice, and finding complementary mentors or board members.
• Grit is essential in the startup world, and it can be fueled by competitiveness, curiosity, and a desire to punch above one's weight.
• Investing in startups requires thorough due diligence, focusing on the leadership team, market potential, and revenue models.
• The COVID-19 pandemic has accelerated the acceptance of remote investing and virtual meetings, but location still plays a role in angel investing.
• Personal interests and family time are important for maintaining a balanced life outside of work.

Sound Bites

"The role of angels and what it used to be and what it is now."

"If you're the entrepreneur and you've got 20 angels that each invest at $25,000, a fairly high percentage of them feel like they can email and call you."

Links

Please leave us a review: https://podchaser.com/DesigningSuccessfulStartups

David's HUB Angels: https://www.hubangels.com/

The book Think Like a Tech Startup Toolkit: https://www.manning.com/books/tech-startup-toolkit

Jothy’s site for speaking, podcasting, and ruminating: https://jothyrosenberg.com

Jothy’s non-profit foundation The Who Says I Can’t Foundation: https://whosaysicant.org

Jothy’s TEDx talk on why people with a disability over-achieve: https://www.youtube.com/watch?v=PNtOawXAx5A

Chapters

00:00 The Evolution of Angel Investing

09:38 The Role of Angels and Investor-Entrepreneur Communication

14:28 Assessing Startup Success and Making Investments

22:55 The Screening Process and Selecting Companies to Present

27:07 Supporting First-Time CEOs and Navigating Leadership Transitions

30:40 The Importance of Grit in the Startup World

35:14 Investing in Technology-Driven Companies

38:41 Personal Interests and Family Time