@eladgil

The Best Way To End Up With $1 Million As An Angel?Start with $2 Million

blog.eladgil.com

ABOUT MESerial entrepreneur (last company acquired by Twitter)Started mobile team @GoogleInvested in AirBnB, Square, Stripe, Pinterest, Optimizely....

AGENDA

1. How to loose money as an angel

2. Good areas for angels

3. Trends

HOW TO LOSE MONEY AS AN ANGEL

HOW TO LOSE MONEY AS AN ANGELBe momentum driven

HOW TO LOSE MONEY AS AN ANGELBe momentum driven

“Who is in” is usually not a good indicator

HOW TO LOSE MONEY AS AN ANGELBe momentum driven

“Who is in” is usually not a good indicatorBest investments often contrarian at the time

HOW TO LOSE MONEY AS AN ANGELBe momentum driven

“Who is in” is usually not a good indicatorBest investments often contrarian at the timeParty rounds may actually be a bad indicator

HOW TO LOSE MONEY AS AN ANGELBe momentum driven

"The companies I have traditionally seen do best over the long term had lead investors for their seed rounds" - Keith Rabois

HOW TO LOSE MONEY AS AN ANGELBe short sighted

HOW TO LOSE MONEY AS AN ANGELBe short sightedHas social internet suddenly become a bad market?

HOW TO LOSE MONEY AS AN ANGELBe short sighted

2004 2006 2007 2010 2010 20112009 2009

Has social internet suddenly become a bad market?

HOW TO LOSE MONEY AS AN ANGELBe short sighted

2004 2006 2007 2010 2010 20112009 2009

“Social is over”

Has social internet suddenly become a bad market?

HOW TO LOSE MONEY AS AN ANGELBe a jerk

HOW TO LOSE MONEY AS AN ANGELBe a jerk

JFK: Don’t ask for updates, ask how you can help

HOW TO LOSE MONEY AS AN ANGELBe a jerk

Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help

HOW TO LOSE MONEY AS AN ANGELBe a jerk

Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help

Sh*t happens, don’t freak out

HOW TO LOSE MONEY AS AN ANGELBe a jerk

Be quick on deal docs, don’t get in the wayJFK: Don’t ask for updates, ask how you can help

Sh*t happens, don’t freak outReputation matters

HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior

HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior

Poor judgement

HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior

Get squeezed out of rounds by VCsPoor judgement

HOW TO LOSE MONEY AS AN ANGELSome inevitable behavior

Investor unfriendly exits: Corp Dev incentivesGet squeezed out of rounds by VCsPoor judgement

HOW TO LOSE MONEY AS AN ANGELPortfolios

Assume you will lose all your money

Rule of thumb need min 10-12 companies in portfolioFollow ons?

GOOD AREAS FOR ANGELS

GOOD AREAS FOR ANGELSSeek Gaps

GOOD AREAS FOR ANGELSSeek Gaps

Capital gap: $500K to $1M seeds; Series A

GOOD AREAS FOR ANGELSSeek Gaps

Help gap: Hands on leadCapital gap: $500K to $1M seeds; Series A

GOOD AREAS FOR ANGELSSeek Gaps

Help gap: Hands on leadIndustry gap: Bio-informatics, Hardware....

Capital gap: $500K to $1M seeds; Series A

GOOD AREAS FOR ANGELSSeek Gaps

Help gap: Hands on leadIndustry gap: Bio-informatics, Hardware....

Capital gap: $500K to $1M seeds; Series A

Differentiation gap: What you uniquely bring

GOOD AREAS FOR ANGELSBe opportunistic

TRENDS

SUCCESSIVE WAVES OF CAPITAL KEEP VALUATIONS HIGH

SERIES A CRUNCH IS REAL

INFORMATION TRANSPARENCY ACCELERATING

DEAL DOC STANDARDIZATION

RISE OF NYC (AND SF)

ENTREPRENEURSHIP VIEWED AS DE-RISKED

ENTREPRENEURSHIP VIEWED AS DE-RISKED

“If I don’t get into YC I won’t leave my job”

ENTREPRENEURSHIP VIEWED AS DE-RISKED

People assume they can exit (most can’t)“If I don’t get into YC I won’t leave my job”

ENTREPRENEURSHIP VIEWED AS DE-RISKED

“If I don’t get into YC I won’t leave my job”People assume they can exit (most can’t)

Whenever good looking people enter an industry....

THANK YOU!

@eladgilblog.eladgil.com