This Week in Startups E1018: #AskJason! Avoiding first-time founder mistakes, causes of big-tech layoffs, participating in a Series A as an Angel, running a US-based startup as an international student, importance of having a strong lead investor & more!
Jan 14, 2020
Explore the nuances of angel investing, including optimal check sizes and the benefits of having a strong lead investor. Learn the challenges faced by international students starting US-based companies. Discover common mistakes first-time founders make, focusing on customer profiling and product development. Dive into recent big-tech layoffs and what they mean for emerging entrepreneurs. Gain insights into efficient hiring strategies using LinkedIn and hear personal anecdotes about navigating the entrepreneurial landscape.
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Angel Investing Strategy
- Start small with angel investments and increase your bet in subsequent rounds based on performance.
- If a company is doing well at Series A, consider a 4-5x increase from your initial seed investment.
Negotiating Minimums
- Don't be afraid to ask founders for exceptions to minimum investment rules, especially if you bring value.
- Many will make exceptions for valuable angels who can't meet the typical minimums.
Good vs. Great Businesses
- Companies with steady but slow growth (e.g., 50% year over year) rarely become outliers.
- VCs seek high-growth companies with the potential to reach substantial annual revenue, not just good businesses.