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Perhaps if you invest with other angels, you can increase the odds. You and joshu you should start the Hacker News SUPER MEGA ANGEL Fund. :-) I don't think the
by aditya 17y ago
Perhaps if you invest with other angels, you can increase the odds. You and joshu you should start the Hacker News SUPER MEGA ANGEL Fund. :-)
I don't think there's anything wrong with keeping potential exits in mind, however it seems that most startups change the idea they're building over time, so betting on the team (pg style, and from what I know Ron does this too) rather than the idea or potential market/future acquisition might still work out better.
All that being said, I'm not sure how you would maximize returns, especially because of all the unpredictability.
- epi0Bauqu 17y agoAngels do often invest with each other, if only because they don't want to put in enough money individually to fill out a round. And there are a lot of angel funds where that co-investing process is more formalized (shared due diligence funds, etc.). I don't think, however, that co-investing by itself really increases the odds. Maybe if I co-invested with someone who picks better or gets better deal flow :). But without increasing the actual # of deals, I don't see how you get closer to those big hits. As for ideas changing, the argument is not to bet against that fact, which would be silly, but instead to bet that the second or third idea will be similar to the bigness potential of the first. That is, if the founder can't come up with an initial idea that doesn't seem like it can realistically result in any kind of decent exit, the probability that they will random walk to one in the future drops. It's of course not zero, but I'm just saying you can increase the odds.