I approach AngelList professionally, not as a hobby or a way to pad my ego. If you back my syndicate, rest assured our interests are fully aligned, and my own capital is at risk right next to yours. I am looking to put at least $50k-$100k of my own money to work in each of my deals, diversified across 10+ deals annually.
I look forward to generating great deal flow and returns for my backers. But as I haven't yet proven my value, I will drop my carry fee to 0% for this first year. In exchange for the opportunity to work with you, I will share my deal flow and due-dil with you, with zero direct financial benefit. (AngelList still gets 5% carry + legal fees for use of their legal structure.)
With that in mind, below is the work flow I pursue for all of the deals I look at:
- I actively reach out for deal flow. Our opportunities are limited by the quality of deals we're able to access. In addition to passive inbound deals, I aggressively seek out incubators, other Angels, seed stage VCs on a regular basis for interesting projects. I maintain relationships with research labs + incubator + business plan contests at UC Berkeley, Stanford, and MIT. I make it a mission to study at least 75 quality deals every month.
- I aggressively participate in due-dil. I don't rely on manager's representation or my own assumptions, instead I actively seek out customers (realized or potential) for first-person conversations. I have an extended network of experts in various fields (AI, VR, enterprise software, ag-tech, intellectual property, social, media)... and I reach out to them regularly.
- I help get deals funded with the right partners. I've worked hard to establish connections in early seed capital markets. I'm a very active member of prominent angel groups. I sit on the board of the Sacramento Angels. I maintain regular contacts with micro-VCs and early round VCs throughout the valley. Very few companies succeed at the seed stage - I work with the entrepreneur to make sure they have a funding strategy at least out to the B round, and make sure the other institutional investors I co-invest with are the appropriate strategic fit.
- Finally, I maintain contact and help shepherd our portfolio companies through the growth phase. Writing a check is only the start of my working relationship with a company, I will work on their strategic goals and assist in introductions + objective feedback at every step along the way.
Please note that my investment criteria differ from traditional VC. I invest for expected returns, and I don't have LPs demanding milestone 100x home runs. This means some deals I bring may have limited upside ($25mm-$100mm range exits) - but regardless, all have viable exit strategies.
I believe I'm unique in bringing multiple perspectives to the deals I evaluate.
First and foremost as an experienced technologist, I understand key factors relevant to any successful startup: scalability (can the technology work at scale), defensibility (is the technology unique at scale), and a little something (often over-looked) called reality.
Second, as an experienced entrepreneur who's seen both success and failure, I understand an operator's mindset. Entrepreneurs are often brilliant in their space, but operate with blind-spots. I approach every investment as a partnership, and will only choose to partner with those who's personality and skills are well-suited for success.
A few personal references:
Podcast about my personal development into a quant fund manager:
http://techzinglive.com/page/849/151-tz-interview-...
Small feature in Futures magazine:
