Early Adopters

Jordan Green, Francisco Banha and Paulo Andrez after dinner in Moscow

A few of us have arrived early.

I had dinner with Tom Nastas, an expat who’s been doing venture capital in the region. He asked many good questions then later suggested that the early stage of angel investing locally would benefit from some of these concepts:

  • The long term nature of tech investing due to poor liquidity. For example, my software company took 15 years to exit and many other worthy deals will take just as long.
  • Be prudent. Invest just a sliver of your net worth, say 10%
  • If you just invest in a handful of tech deals, you will lose all your money. Monte Carlo simulations have shown that it takes 25 deals to avoid losing money. How many years will that take you?
  • VCs think: 2-6-2 (2 will fail, 6 tread water and 2 are big successes), but for angels 57% of their deals will fail
  • Don’t ‘only invest in what you know’
  • What can you contribute besides money?
  • Be promiscuous. Hold your nose and write a check.
  • Easy on the due diligence
  • My new diversification perspective: deals that need VC vs. those that don’t

 

Thomas Nastas

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