1. @eladgil
The Best Way To End Up With $1 Million As An Angel?
Start with $2 Million
blog.eladgil.com

2. ABOUT ME
Serial entrepreneur (last company acquired by Twitter)
Started mobile team @Google
Invested in AirBnB, Square, Stripe, Pinterest, Optimizely....

3. AGENDA
1. How to loose money as an angel
2. Good areas for angels
3. Trends

4. HOW TO LOSE MONEY AS AN ANGEL

5. HOW TO LOSE MONEY AS AN ANGEL
Be momentum driven

6. HOW TO LOSE MONEY AS AN ANGEL
Be momentum driven
“Who is in” is usually not a good indicator

7. HOW TO LOSE MONEY AS AN ANGEL
Be momentum driven
“Who is in” is usually not a good indicator
Best investments often contrarian at the time

8. HOW TO LOSE MONEY AS AN ANGEL
Be momentum driven
“Who is in” is usually not a good indicator
Best investments often contrarian at the time
Party rounds may actually be a bad indicator

9. HOW TO LOSE MONEY AS AN ANGEL
Be momentum driven
"The companies I have traditionally seen do best over
the long term had lead investors for their seed
rounds" - Keith Rabois

10. HOW TO LOSE MONEY AS AN ANGEL
Be short sighted

11. HOW TO LOSE MONEY AS AN ANGEL
Be short sighted
Has social internet suddenly become a bad market?

12. HOW TO LOSE MONEY AS AN ANGEL
Be short sighted
2004 2006 2007 2010 2010 20112009 2009
Has social internet suddenly become a bad market?

13. HOW TO LOSE MONEY AS AN ANGEL
Be short sighted
2004 2006 2007 2010 2010 20112009 2009
“Social is over”
Has social internet suddenly become a bad market?

14. HOW TO LOSE MONEY AS AN ANGEL
Be a jerk

15. HOW TO LOSE MONEY AS AN ANGEL
Be a jerk
JFK: Don’t ask for updates, ask how you can help

16. HOW TO LOSE MONEY AS AN ANGEL
Be a jerk
Be quick on deal docs, don’t get in the way
JFK: Don’t ask for updates, ask how you can help

17. HOW TO LOSE MONEY AS AN ANGEL
Be a jerk
Be quick on deal docs, don’t get in the way
JFK: Don’t ask for updates, ask how you can help
Sh*t happens, don’t freak out

18. HOW TO LOSE MONEY AS AN ANGEL
Be a jerk
Be quick on deal docs, don’t get in the way
JFK: Don’t ask for updates, ask how you can help
Sh*t happens, don’t freak out
Reputation matters

19. HOW TO LOSE MONEY AS AN ANGEL
Some inevitable behavior

20. HOW TO LOSE MONEY AS AN ANGEL
Some inevitable behavior
Poor judgement

21. HOW TO LOSE MONEY AS AN ANGEL
Some inevitable behavior
Get squeezed out of rounds by VCs
Poor judgement

22. HOW TO LOSE MONEY AS AN ANGEL
Some inevitable behavior
Investor unfriendly exits: Corp Dev incentives
Get squeezed out of rounds by VCs
Poor judgement

23. HOW TO LOSE MONEY AS AN ANGEL
Portfolios
Assume you will lose all your money
Rule of thumb need min 10-12 companies in portfolio
Follow ons?

24. GOOD AREAS FOR ANGELS

25. GOOD AREAS FOR ANGELS
Seek Gaps

26. GOOD AREAS FOR ANGELS
Seek Gaps
Capital gap: $500K to $1M seeds; Series A

27. GOOD AREAS FOR ANGELS
Seek Gaps
Help gap: Hands on lead
Capital gap: $500K to $1M seeds; Series A

28. GOOD AREAS FOR ANGELS
Seek Gaps
Help gap: Hands on lead
Industry gap: Bio-informatics, Hardware....
Capital gap: $500K to $1M seeds; Series A

29. GOOD AREAS FOR ANGELS
Seek Gaps
Help gap: Hands on lead
Industry gap: Bio-informatics, Hardware....
Capital gap: $500K to $1M seeds; Series A
Differentiation gap: What you uniquely bring

30. GOOD AREAS FOR ANGELS
Be opportunistic

31. TRENDS

32. SUCCESSIVE WAVES OF CAPITAL KEEP
VALUATIONS HIGH

33. SERIES A CRUNCH IS REAL

34. INFORMATION TRANSPARENCY
ACCELERATING

35. DEAL DOC STANDARDIZATION

36. RISE OF NYC (AND SF)

37. ENTREPRENEURSHIP VIEWED AS DE-RISKED

38. ENTREPRENEURSHIP VIEWED AS DE-RISKED
“If I don’t get into YC I won’t leave my job”

39. ENTREPRENEURSHIP VIEWED AS DE-RISKED
People assume they can exit (most can’t)
“If I don’t get into YC I won’t leave my job”

40. ENTREPRENEURSHIP VIEWED AS DE-RISKED
“If I don’t get into YC I won’t leave my job”
People assume they can exit (most can’t)
Whenever good looking people enter an industry....

41. THANK YOU!
@eladgil
blog.eladgil.com