Group items tagged valley - 21212 Accelerator

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Jose and I typically invest in a copy only if the original model has reached $100 million in revenues and is profitable or on the path to profitability. Increasingly companies that have just raised seed money are being copied.
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We don’t take simultaneous business model and market risk
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mostly investing in priced rounds with pre-money valuations between $1 and $3 million, has allowed us to be successful on the majority of our exits – even when they were for less than $10 million
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Human nature is such that we would spend too much time with the companies fairing badly (even though the worst that can happen is that the value of our investment goes from 1 to 0) and not enough with the ones doing well (even though their value can go from 1 to 10 or 100!).
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Most studies suggest that angels with fewer than 10 investments lose money, while those with more than 10 investments make money
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The corollary is that by not being based in the Valley and by being so disciplined, we have not had any huge hits. Had we been given the opportunity to invest in Facebook, Google, Youtube, Linkedin and Pinterest at seed, we would have probably passed. None of the companies in the portfolio are worth more than $1 billion. Only a few have the potential to reach $1 billion and none seem to have the potential to be worth $10 billion.
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