Venture & Angel Investing
Venture & Angel Investing
Duration: July-August 2020
Day(s): Sat / Sun (16 Weekends)
Course Format: Online
Duration: 12 Sessions Lectures / 3 Guest Lecture / 1 Practicals with Pitch Day
Time: 7:00 pm Onwards
About the Program:
Running a business is very different from investing in one. So how do you make money from investing in early-stage startups? What sets successful startup investors apart? Should you pick your own investments, or rely on an angel network? How do you increase the probability of exits that your early-stage investments generate outsize returns? This course will learn to source quality deal flow, ask the right questions before making an investment, support portfolio companies through the lifecycle, and enable highly-profitable liquidity events. In addition to the critical pre-investment topics of deal flow, due diligence and negotiation, this course will cover post-investment topics including governance, fundraising and exit, as well as hands-on practice in evaluating opportunities. This is a professional development program aimed at helping you take the next step in your venture capital career.
Angel Investing is a very challenging and competitive domain and extremely difficult to break into. This program is designed to act as an enabler for others to navigate their own paths into the field.
Venture, Angel and Startup Investing
Learn what is venture investing and type of funding available for entrepreneurs. What is the difference between angel investors and venture capital firms. Angel Investor or Private Investor is an individual, mostly high net worth, usually with business experience, who directly invests part of his or her personal assets in new and growing unquoted businesses. Venture capital investment firms can provide the seed money for high-risk, start-up companies. People called venture capitalists run these firms, and make the investment decisions. Besides money, venture capitalists can also provide support through advice, human resource management and even office space for a business they invest in.
Difference Between Angel Funding & Venture Capital
Learn What is Angel Investing, how it works in comparison to venture capital. Angel investors specialize in early-stage businesses, while VC firms are generally more unwilling to invest in startups unless they show really compelling promise and growth potential. Angels investors are primarily there to offer financial support. While they might provide advice if you ask for it, or introduce you to important contacts, they are not obliged to do so. Their level of involvement depends on the wishes of the company and the angel’s own inclinations. A venture capitalist looks for a strong product or service that holds a strong competitive advantage, a talented management team, and a wide potential market. Once venture capitalists are convinced and have invested, it is then their role to help build successful companies, which is where they add real value.
How To Create Startup Investment Deal Flow
Learn how to create deal flow for venture investments if you are an angel, family office or a syndicate. There are not enough good companies and there is so much money chasing good founders. The success of an angel investor is to get into the top 5% of the deals.
How To Discover Valuable Startups, Evaluate Startup Pitches
Learn how to evaluate startup pitch. Cheat sheet to find a proposal that looks promising to invest. There really is no one size fits all investment thesis but applying this filter will surely help avoid costly investment mistakes in early stage companies viz startups
How To Filter Startup Pitches
Venture Investing for beginners. Useful checklist when evaluating a startup investment on competition landscape. Deciding whether to invest in a good idea is hard. Learn how to quickly filter through pitch decks to determine which deals interest you
Question to Ask Entrepreneurs on Moat
Learn how to evaluate quickly and efficiently whether the idea merits further investment of your time and money. Use of “So What Theory”
Valuation of startups is an art or science, learn equity dilution
Valuation matters to investors as they are getting the company share in lieu of the money they are going to spent. How does an early-stage investor value a startup? One of the most frequently asked questions at any startup event or investor panel, is “how do investors value a startup?”. Expect lower valuations during a recession and higher in boom times when there is more competition for investment. Startup valuations may also be adjusted up or down based on the strength of the management team, location of the business, industry or market. Valuation is an important topic for angel investors. It helps to get as much information as possible to make good early-stage investments. A good valuation will probably leave both the investor and you satisfied, but not overly happy.
Post Investment Engagement With Portfolio Companies
Investors who interacted with their invested portfolio companies at least a couple of times a month experienced greater results. Interaction could be in the form of mentoring, coaching, overseeing and monitoring performance as well as providing leads. Investors sit on startup boards not one but lots of them. Sitting on boards is not just a means for investors to monitor their investments; it’s also a formal platform from which to offer expertise and value without interfering in day-to-day operations. But out of all the services a VC can offer, many investors agree that help with fundraising, strategy, and recruitment is key.
Designing & Documenting Startup Exit
Startup exit strategies take on different forms, but it is important that startup founders should put an exit plan one in place for their early investors. While investors continue rooting and supporting the invested company business, they are looking for a return on their capital invested. Founders presenting a clear, concise exit strategy in their pitch shows that they are serious. It indicates that they have thought about the investor’s role in the company and the value the investor will provide, not just getting them to write founders a check. Planning an exit is definitely a distracting process as you are running a business in parallel. An investment banker can often provide leverage throughout the process. Hire one for your exit outcomes.
Mr. Sanjay Mehta
Sanjay Mehta is a 49-year-old technology evangelist and an entrepreneur turned VC. He is known as the 100X investor with the Midas touch. Sanjay achieved notoriety in the media for his first cheque investments in Oyo Rooms & Block.One – 2 Unicorns in his portfolio. He has been a TiE Board Member for over three years before founding 100X.VC, a 2019 SEBI registered fund sponsored by Mehta Ventures Family Office. 100X’s goal is to invest first cheques in 100 seed stage India domiciled startups every year. Through 100X.VC He is bringing the revolutionary iSAFE note (India Simple Agreement for Future Equity) to India which simplifies seed stage fundraising.
In the past, as a private investor, he had invested in over 130+ global startups. He has an outstanding portfolio performance with 103% IRR on all funded startups to date vs the industry average of 30%. His most recent exit was LogiNext, where Sanjay created a deal syndicate which generated multiples of 16X returns for all the angel investors included in his deal. Besides investing, Sanjay is also a partner at CORE Media which is India’s largest IT-Media company. Sanjay was also a part of the reality show PitchRight Season 1 and Season 2 in which founders pitched him their ideas for 45 seconds in the Bombay Stock Exchange elevator. These 26 episodes got over a million views. Currently, he is part of the first 20 episodes of the Winning Pitch Series on Leaders of Tomorrow by ET Now TV Channel.
For any founder, Sanjay is first a friend, second an advisor, and finally an investor. Sanjay is now looking to make the startup world 100x better, bigger and brighter. Sanjay is an engineer and has studied International Business from ISB and Venture Capital from Wharton. He was honoured with TiE Hall of Fame in Jan 2020 for his outstanding contribution in angel investing. He has been honoured by being awarded Angel Investor of the year by LetsVenture, has made the Forbes List of Investors, and named as a Super Angel and one of the Top Twitter Voices by Entrepreneur magazine.