A lot of people know that athletes study the moves of other great athletes. But did you know athletes are now studying the moves of great Venture Capital investors like Josh Kopelman at First Round Capital? His firm turned $1M investment in Uber into more than a billion dollars! Here are some of the things Kopelman told a group of 50 athletes I organized for a seminar. If you’re an athlete and want to learn from the tech GOATs hit me up!
1) Are you seeing this deal because it’s a great opportunity and someone is kind enough to let you in OR because you’re the only person on the planet who would invest in it?
2) Look for strong founders with contrarian views that are comfortable going against the grain.
3) Be a value-add Angel Investor behind a strong lead investor and lean on their sourcing a diligence.
4) Just like power laws apply in sports, millions of people play ball, dozens play it at the highest level. Tech is the same: thousands of VCs, 20 or so make 95% of all the money. Choose who you invest with wisely.
5) Seed stage is risky, most companies don’t make it. They still make money because they invest in more than 25 per year. But if he only invested in 3 per year he would never make money! So unless you invest in dozens don’t do 3.
6) Make sure your network is with top VC guys if you want to invest in tech.
7) There’s no gatekeeper between celebrities and their fans so they control their audience. That’s a huge strategic value to companies who have products for these fans. Use your influence.
8) Set a budget and strategy for early, growth and late stage and stick to it
9) Use group economics. Invest together like other angel investor. In syndicates. You can get into more deals (see #5) and write smaller checks!
Remember the RW Rule of Wealth: get your passive income to EXCEED your expenses when you retire, and you will never go broke.