Angel Investing Revealed

Title: Angel Investing Revealed
Date: 2008-01-23
Speaker: Ron Conway, Mike Maples Jr. (Angel Investors)
Link: Entrepreneurial Thought Leaders
 
An angel investor is somebody who invests $50k or $100k in raw startups.
The angel investor term was started in the 30s as somebody who invested in movies in LA.
The good angels have had some type of accomplishment in business before.
Good angels will provider a broader range of exit options.
Ideas are pretty cheap.
The average angel round is $500,000 to $1,000,000.
Avoid codependencies.
It is not the entrepreneur that failed. It is the business that failed. In life you win some and you lose some.
Fail gracefully.
The entrepreneurs that fail are the ones that didn’t understand that the business was supposed to morph.
Companies that have low burn rates have hugely larger probabilities of getting lucky over time.
Companies are the most productive when they are less than ten people.
Have a customer development strategy in addition to a product development strategy.
Don’t scale until it works.
Discover the business–don’t scale the business.
Too much money in a startup is toxic. It causes you to pursue losing strategies for too long to the detriment of the winning strategies.
Silicon Valley isn’t so much of a place as an idea about what is possible and what kind of companies can be built. People that gravitate towards that set of ideas and culture gravitate there.
In the hyper competitive world of startups every advantage counts.
Exit isn’t a number but a probability distribution curve.
Who you choose to trust is one of the most important things to do in your entrepreneurial career.
If an idea is truly disruptive it is always capital efficient.
Capital efficiency is a religion for how you can run a business.
You don’t start a company yourself–you need to go and collaborate with people.
You have no excuse in life not to do things you’re passionate about.
If you’re doing something you’re not passionate about you’re flunking a cosmic I.Q. test.
Most decisions are 50/50 or obvious.
You need to give yourself permission to do the thing you know is the right thing.
Commit yourself to doing exceptional work always.