$25k investment in Dropbox 10 years ago would have made you more than $8million in 2018. Yup, over 39,000% return or 81% annualized ROI. Remember they started off raising $1.2m led by Sequoia. We invested a little later. So 11 years they went from being worth $10m to be worth $10bn! Now they are public and all the investors are cashing out and taking their gains. Do a google search for “Dropbox seed pitch deck” and see how clear, simple and powerful it was. They figured us how to get 500 million registered users!
Here are three major keys to making money investing in tech:
1. Get in early (warning: 9 out of 10 fails)
2. Understand the indicators of success
3. Diversification! No more than 5% of your portfolio should be in this class.
Regarding #2 I could write a whole post about that. Think of a startup as a temporary entity designed to scale and repeat a business model. Do you have to dig into their hypotheses like a science project? What research, assumptions, progress, tests etc. investing is quite fascinating and scientific when you get into it. Congrats all my investors who invested back in 2014 with us. Finally got that exit. ✊🏾🙏🏾 #venturecapital #technology#startups