Investing in early stage companies can be very lucrative but also risky. To succeed, investors need to work hard to get access to the best deals, evaluate teams and markets effectively, move fast when confident, and help founders be more ambitious. Key factors include founder relentlessness, rapid improvement over time, large market potential, and product differentiation. Getting deal flow relies on networking, helping others, and building a personal brand. Making smart choices requires assessing founder abilities as well as market growth rate and size. Helping entrepreneurs after investing is also crucial for value creation.
Obtain high-quality early stage investment opportunities through effort
Gaining access to early-stage deals is attainable through exertion. Surprisingly, most investors do not labor intensely. By networking extensively, assisting other investors and founders, and constructing a supportive reputation, strong deal flow will follow. Writing substantive content and publicizing usefulness spotlights promising openings.
Identify and assess creative teams with potential for greatness
Evaluating teams holistically and predicting escalating returns necessitates meeting founders personally numerous times. Rapid improvement trajectories signify capability despite absolute skill presently. Founder relentlessness, bold vision, sharp intelligence and a forcing mission indicate upside.
Discern large, rapidly expanding markets early
Judging markets relies on envisioning future scale and growth rate, not current size. Top firms often lead markets before trends materialize fully. But they differentiate between real, usage-based momentum versus false hype. Massive platforms enabling unprecedented potential merit special consideration.
Secure deals through decisiveness, helpfulness and relationship-building
Closing talent requires allocating time, explaining value-add, introductions and emphasizing decisiveness. Prioritizing founders as peers, not subordinates, builds bonds. Quickly conveying high conviction and support reduces uncertainty. Success helps, but staying humble and assuative generates appreciation.
Accessing and assessing early stage ventures and teams needs exceptional effort. But hands-on aid after investing and ambition prompting enable outsized returns.