Archives for category: education

baby unicornAngel investors are often cautious about diving in too early when it comes to investing in early stage tech startups.  They argue that it is highly risky and that there is little quantitative data on which to judge performance. Of course this is correct but does the situation get any more favourable if you leave participation until later? We all know that even VCs have a poor record of picking winners. Surely it is better to make a larger number of smaller bets at early stage than risky larger amounts on later rounds when the valuations are poorer and you have less influence? Here are a few reasons for getting in early;

You can cherry-pick the best opportunities

In the current frothy market there is strong competition for VC ready startups.  However, at seed stage, there is the possibility of spotting a gem. Admittedly it takes more work and you may want build a relationship before committing but you can construct a portfolio of startups that play to your personal strengths and experience. I would advise networking like crazy in your designated sector, learn whats attracting VC investment and get in before the rest.

You can influence the outcomes

If you are first in, you can have a strong influence on the strategic outcomes of the startup that you invest in. You will want to pick strong founders in industry sectors where you have previous knowledge and contacts. You can build a powerful relationship in an advisory role and take away some of the burden from the founder in building the first full funding round. You can also bring the benefit of your experience and help the founder attract other investors.

You get a better valuation 

Clearly the earlier you invest the more favourable the valuation you will secure. This has the advantage that you will be able to construct a portfolio in which you hold equity in a great number of startups with higher equity share. The diversification of your portfolio is an essential part of achieving a higher return on your investment. If you spot opportunities early enough you will find that quite small individual investments can have a major impact.

I would advise founders to start building their funding rounds, bottom up, from very early in their startup lifecycle. They should identify smart investors who are able to add value during the early days and later bring in other investors to construct the full seed round. Most founders fail to realise that they will need a lead investor anyway. It is better for both parties to build the relationship early to obtain maximum benefit.

Blog by Paul Dowling – Co-Founder of Dreamstake  the world’s first tech startup platform to match founders with the most appropriate investors using a unique startup rating system. This allows entrepreneurs and investors to monitor startup progress and inject capital and support when most needed. Startup founders can create profiles on the platform and get direct introductions to investors. We are constantly looking for great early stage tech startups. Investors please contact [email protected]

We have also recently launched an exclusive tech angel investment club in partnership with The Hoxton. HoxTech Angels will run invitation only angel investment evenings every month.

 

It is true, that these days with enough patience you can learn absolutely any business skill online or offline, but where to find workshops for internet startups that’d be of great value for time and money?

There are all sort of online and offline workshops for internet startups and digital entrepreneurs, offered by ed tech (educational technology) startups and some very established players. I would like to highlight a couple of sources that I still myself, if I need to quickly freshen up my skills.

General Assembly London. Originally out of New York, these guys are now also fully established in London. You can attend all sort of useful sessions for technology entrepreneurs to learn skills from coding to growth hacking. Their prices start from about 15GBP per one session. You can also attend their full time courses over several weeks and become a certificated professional i.e. User Experience or Programming.

Coursera. Wanna learn from a Yale professor about financial markets or discover recent case studies in business analytics with Accenture? No problem, you can now do it online from your sofa for a very affordable price or sometimes even free. This company has international universities on board producing their online workshops, many of which are not only useful for digital businesses, but will help to build any professional skills.

LinkdIn’s Lynda.comOnline learning portal Lynda has been acquired by linkedin this past spring and is slowly becoming a well established online destination for anyone incl. digital and technology entrepreneurs wishing to polish their business skills and set up business online incl.  coding, online marketing , design, video etc. Their subscription model is very affordable for anyone and their range of online workshops is very wide with tutors from all countries and backgrounds.

Digital Business Academy is pretty much the  new offer from the British Government, which is trying really hard to support internet startups and digital entrepreneurs. They have a full range of online tutorials about how to start a business online. The great thing about it is that it is not only free but also produced mostly by established entrepreneurs from the tech industry. Seems that they know what they are talking about and have great case studies and practical examples.

Dreamstake Academy - we have been running free workshops for tech entrepreneurs and digital startups for three years. Since then we have had a chance to learn what are the most important and valuable for our entrepreneurs.  It is a free non-profit project and we now have some of the best tutors from all over Europe supporting us. We run up to 4 workshops for entrepreneurs per day with subjects including anything from Business Model Canvas to VC and angel funding for early stage tech businesses. You can become a member and sign up here.

Blog by Marina Atarova, Co-Founder of Dreamstake  the world’s first tech startup platform to match founders with the most appropriate investors using a unique startup rating system. This allows entrepreneurs and investors to monitor startup progress and inject capital and support when most needed. Startup founders can create profiles on the platform and get direct introductions to investors. We are constantly looking for great early stage tech startups. Investors please contact [email protected]

We have also recently launched an exclusive tech angel investment club in partnership with The Hoxton. HoxTech Angels will run invitation only angel investment evenings every month.