Startups For the Rest of Us Episode 748 | The Ins and Outs of Startup Investing
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Jan 14, 2025 Einar Vollset, co-founder of TinySeed and an expert in SaaS investing, shares insights on startup investing strategies. He discusses the waning stigma around bootstrap funding and redefines success beyond billion-dollar exits. The conversation delves into deal flow dynamics, the tricky nature of valuations, and the importance of keeping optionality in investments. Einar highlights TinySeed's unique focus on capital efficiency in supporting ambitious B2B SaaS companies, contrasting it with traditional VC models.
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Venture Fund Returns
- Top quartile venture funds returned just over 2x in the 2004-2014 decade.
- This is lower than many expect, highlighting the importance of risk reduction over extreme returns in fund investing.
Deal Flow for Angel Investors
- If you want to angel invest, build a robust deal flow.
- Secure enough quality deals at reasonable valuations to justify individual investments.
Diversification for Angels
- Angel investors need diverse investments (15-20) to mitigate risk.
- Securing and managing so many small checks individually is challenging.