As a beginner, what should I look for in a company?
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:
- Tim Ferriss
- Fabrice Grinda
- Semil Shah
- Naval Ravikant
- Gil Penchina
- Phil Nadel
- Elad Gil
- Raj Mehta
And in terms of VCs who invest in early-stage deals:
- True Ventures
- Andreessen Horowitz
- Lowercase Capital
- 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.