Disclosures

  1. 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/).

  2. 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/).

  3. 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.

  4. 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 Graham Gullans

 

SeedInvest sits down with Graham Gullans, Managing Director of Empire Angels,  to talk about his startup investing tips.

Recognize Patterns When Investing

  • Analyze competitors in order to find the “diamond in the rough”.
  • Use prior knowledge and experience with similar companies to determine what works and what doesn’t.
  • How many times have you seen a company do something similar and what was the outcome of the company?

“Investing is art as much as it is a science.”

Invest in Passion

  • Invest in entrepreneurs with a product that you would use everyday.
  • If you can talk about a company’s product in a “cocktail conversation,” then that company is right for your portfolio.
  • If investors receive regular feedback from entrepreneurs, then they are more likely to talk about those companies.

Have Realistic Expectations for your Investment Returns

  • The most successful investments come out of companies that only need low single digit millions.
  • “Singles” and “doubles” often achieve their goal outcome of 20-50 million.
  • You can receive a ten times return without raising too much capital.

Have Conviction When You Invest

  • Do not delay the process in the name of optionality.
  • Hot deals don’t come back to angels who wait.
  • Conviction will establish good faith with entrepreneurs, and foster a positive business relationship early on.

graham-gullans

Graham is the Founding Managing Director of Empire Angels, focused on building the member network and leading group investments. Graham is an active angel, entrepreneur and board member. He led two round of financings into ZoomCar and sits on the board. Graham has a strong interest in fintech, social analytics and B2B startups and spends much of his time with portfolio companies. Graham blogs at GrahamUnplugged.VC


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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