Disclosures

  • SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  • Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.

Startup Investing 101 with Brad Harrison of Scout Ventures

Equity Crowdfunding Analysis
 

SeedInvest sat down with Brad Harrison to discuss startup investing best practices, online equity crowdfunding and the development of startup ecosystems. The managing partner and founder of Scout Ventures, Brad is an entrepreneur and seasoned business builder with a passion for technology, media, and entertainment startups.

What do you look for in startups?

  • Team history and experience.
  • Vision for the direction of the business.
  • Clear-cut execution plan.

What questions should investors ask startups?

  1. What are you going to do with the money?
  2. How long is that money going to last you?
  3. What are you trying to achieve with the money?
  4. What are the metrics that you’re going to use to measure your success?

What are the keys to successful startup investing for angels?

  • Finding good co-investors.
  • Spending time getting to know company founders.
  • Making yourself available to your startups.

How should angels cultivate their networks?

  • Include venture capitalists, other angels, and entrepreneurs.
  • Be there when companies need help.
  • Develop a reputation as a value-add investor.

“Putting your money into this asset class is not just an investment decision, it’s also an investment in the startup ecosystem and the economy at large”

What do you think of equity crowdfunding platforms?

  • Removes some of the burden of due diligence, documents, and reporting.
  • Adds a level of organization for investors.
  • Information is easily shareable online.

What are the big-picture benefits of startup investing?

  • Ability to invest in a company from the ground up.
  • Contributes to technological growth.
  • Helps perpetuate a cycle of entrepreneurship.

Bradley-C.-Harrison_Managing-Partner

While attending MIT, Brad worked as a Partner in a seed stage venture fund, ITU Ventures, and helped launch a joint MIT-Harvard incubator. While serving as Director of Media Strategy and Development at AOL, Brad co-authored 3 patents in search, geo-tagging, and personalization, with Edmund Fish, Senior Vice President and General Manager at AOL. Following AOL, Brad helped raise $40M in venture funding for a contextual online advertising network. Prior to launching his business career, Brad served in the United States Army for five years, earning both Airborne and Ranger qualifications and retired as Captain.

Startup Investing 101 is a web series dedicated to educating investors about the world of startup investing.

 

This post was written by Alexandra Tynion on October 22, 2014

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