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 Erica Minnihan, Managing Director of DreamIt Ventures

 

SeedInvest sits down with Erica Minnihan, Managing Director at DreamIt Ventures, to discuss strategies for successful startup investing.

Any advice for first time startup investors?

Establish a Well Constructed Portfolio of Startups:

  • Plan to invest in thirty to forty startups over the next five to ten years.
  • Reserve some “dry powder” for follow-up investments with successful companies.
  • Have a target IRR higher than 25% to compensate for unsuccessful investments.

“The people that make the most successful companies aren’t necessarily the people that come to you with the best idea in the beginning, but they’re the people who can pivot.”

Take Marketing Seriously:

  • Only invest in startups that have a completely realized marketing strategy.
  • Research a startups work ethic and prior accomplishments.
  • Make sure the company can evolve according to market dynamics.

Invest in Startups with Strong Financial Models:

  • Make sure their whole management team knows what they’re doing.
  • Understand how a startup plans to drive growth.
  • Analyze the company’s financial ability to change directions.

Erica-Minnihan1

Erica Duignan Minnihan is a Managing Director for DreamIt Ventures focusing on Community Development in the New York City region.  DreamIt Ventures runs programs in Austin, Baltimore, New York City, Philadelphia and Tel Aviv. In the last 5 years, DreamIt has helped 127 companies and over 400 entrepreneurs turn their ideas into business.  She is also Managing Partner of seed-stage investment fund Fortuna Ventures, which invests in technology-enabled early stage companies.

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 August 27, 2014

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