As a beginner, what should I look for in a company?

cremito Train Asked on September 7, 2015 in Deal Sourcing.
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For most people, it’s best to simply observe at first. Look at deals on sites like AngelList, FundersClub and MicroVentures.

When you’re ready to jump in, I suggest a simple rule. Only invest in deals with a high-quality lead investor. Either a well-known angel investor or VC firm.

In terms of angel investors, here are a few of my favorites:

  1. Tim Ferriss
  2. Fabrice Grinda
  3. Semil Shah
  4. Naval Ravikant
  5. Gil Penchina
  6. Phil Nadel
  7. Elad Gil
  8. Raj Mehta

And in terms of VCs who invest in early-stage deals:

  1. True Ventures
  2. Andreessen Horowitz
  3. Homebrew
  4. Lowercase Capital
  5. Ludlow Ventures

If you’re lucky enough to find a deal where any of the parties above are investing, it’s a great place to start. I’ve invested alongside almost all of them at one point or another.

You don’t have to follow notable investors into deals, but it’s certainly not a bad place to start.

kitter3 Train Answered on September 7, 2015.
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