Invest in Moonicorns: How to find good startups for a winning portfolio

Angel investing is a thrilling venture, offering a blend of high risk and potential for substantial rewards. It centers on early-stage startups and demands not just capital but also a strategic outlook and deep understanding of the startup ecosystem for success.

This article delves into wisdom from veteran investors, revealing tactics for spotting and nurturing high-promise startups into a successful portfolio.

How do industry experts scout exceptional startups for a top-notch portfolio?

The "Invest in Moonicorns" event brought together a panel of savvy experts, who disclosed their methodologies for refining investment choices and selecting stars among startups for a flourishing portfolio. Here are the highlights:

  • John Sechrest, Mossy Ventures: Highlighted the critical role of the founding team and the importance of market traction. He suggested that investors should create consistent value in order to build a resilient portfolio.
  • Max Susanu, Growceanu Angel Investment Club: Urged investors to define their angel investing philosophy—be it financial gain, societal impact, or founder support. Highlighted the importance of learning from a broad spectrum of angel investors and engaging with business angel networks and industry events, including reconnecting with former colleagues.
  • Valentin Filip, Fortech Investments: Underlined the significance of partnership with trusted individuals and showcasing a startup's rich experience. He advocated for investors to support founders in shaping their product.
  • Razvan Suta, Startup Wise Guys: Advocated for a clear investment thesis and a proactive stance. Engaging with the startup community, networking with seasoned angels, and being vigilant about promising opportunities are crucial. Let personal passions and instincts complement industry insights.
  • Remus Radvan, Wayra: Identified accelerators and startup programs as fertile grounds for discovering promising startups. Recommended involvement with venture capital funds, leveraging scout networks, and building one's personal brand as vital steps.

Insights from Ciprian Man on Curating His Investment Portfolio. Choosing the right startups involves several key considerations:

  1. Funding Stage: While early-stage startups are riskier, they also offer the potential for higher gains.
  1. Management Team: Search for founders with a blend of passion, proven track record, and execution capability.
  1. Market Opportunity: Focus on startups tapping into large and growing markets.
  1. Product or Service: Give preference to startups that solve real problems in unique ways.
  1. Financial Projections: Evaluate the realism and feasibility of the startup's financial roadmap.

Angel investors should also align these considerations with their risk tolerance and investment goals. Given the long-term nature of angel investing, patience is a virtue.

Additional Insights for Savvy Investment Decisions

In addition to the insights from the panel, enhance your investment acumen with these extra tips:

  • Do your research: Understand the startup's business model, market scope, and competitive landscape before investing.
  • Diversify your portfolio: Don't put all your eggs in one basket. Spread your investments across various startups to mitigate risk.
  • Be patient: Angel investing is a long-term game. Be patient, and don't expect to get rich quickly.
  • Meet your tribe: If you're new to angel investing, joining a community can provide valuable shared experiences.

Stay tuned to our blog for ongoing insights and valuable lessons from the field of angel investing.