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 Mark Peter Davis, Interplay Ventures

Equity Crowdfunding Analysis
 

We sat down with Mark Peter Davis, Managing Partner at Interplay Ventures, to discuss investing best practices, recommended startup due diligence, and some hidden startup investing nuances.

Should you invest in a startup with a huge market, an incredible team, or phenomenal technology?

  • The key is to invest in a company that has some degree of each.
  • We’re trying to check all of the boxes at the sufficient level.
  • You should never sacrifice two of the three for just one strong area.

What do investors look for when searching for successful startups?

  • Pinpoint the company’s core function.
  • Analyze whether or not the core team can efficiently execute the core function.
  • Organized and emotionally intelligent entrepreneurs.

“Wait for the one where you can’t believe you’re going to get in…that’s when you should invest”

Favorite startup investing advice?

  • Don’t be too quick to rush into a deal.
  • Don’t be afraid to pass on a company that isn’t fully there.
  • There are always similar companies to examine.

Any hidden nuances to startup investing?

  • If a company is targeting a narrow customer base, things can go wrong quickly.
  • Always look for momentum in product development.
  • Look out for possible friction between startup founders.

markpeterdavis

Mark Peter Davis is a venture capitalist, serial entrepreneur, author and community organizer.  MPD is the Founder of Interplay Ventures an investment and incubation firm based in NYC.  He is also the author of  The Fundraising Rules, a handbook designed to help entrepreneurs raise capital, and the founder of both the Columbia Venture Community and the  New York Venture Community. You can follow his blog at mpd.me and his tweets at @mpd.

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 2, 2014

Raise a Round

A streamlined fundraising process for companies at every stage.

Choose how much you’d like to allocate to startup investing today.