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www.SYD.vc. HOW TO INVEST IN TECHNOLOGY BASED STARTUPS. Andrey Shirben. @ ashirben @ SYDVentures. WHAT DO WE INVEST IN?. WHY TECH?. Investing in Tech is usually more about investing in people rather than in ideas
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www.SYD.vc HOW TO INVEST IN TECHNOLOGY BASED STARTUPS AndreyShirben @ashirben @SYDVentures
WHAT DO WE INVEST IN? Andrey Shirben - SYD Ventures
WHY TECH? • Investing in Tech is usually more about investing in people rather than in ideas • While it’s a high-risk investment – it can generate a higher upside (when it’s successful of course) • Making a real contribution to the world of science/technology Andrey Shirben - SYD Ventures
SAY GOODBYE TO YOUR MONEY The healthiest approach for tech investments Andrey Shirben - SYD Ventures
THE TEAM • Most valuable part of a start-up company • Can make/brake the idea • Need to be highly motivated,hungry for success & readyfor some shifting • Experience is overrated Andrey Shirben - SYD Ventures
THE PRODUCT (RISK ANALYSIS) • Why? What’s the pain? • What’s the business model? • Is the market big enough? • Is there enough marketing budget? Andrey Shirben - SYD Ventures
BE CAREFUL OF: • Hockey Stick Graphs • Solutions to non-existing problems • Viral promises - it’s not that easy… • Do your own market research – ask around, consult with people that understand the specific industry Andrey Shirben - SYD Ventures
DON’T BE SCARED OF: • Young, inexperienced team – most likely they will do anything to prove themselves • Technology – technical risk can typically be handled, while market mismatch can not… • Lack of short term revenue • In short - follow your instinct Andrey Shirben - SYD Ventures
WHEN TO INVEST? • Pre seed • Seed • Series A • Series B • … Pro’s & Con’s of investing early vs. later Andrey Shirben - SYD Ventures
VALUATION • No one actually knows • Traditional methods surely don’t work • Whatever you’re willing to pay 1,000,000 Andrey Shirben - SYD Ventures
INVESTOR’S APPROACH • Think about the best interest of the company • Respect the entrepreneurs • Aim for the long term • Don’t spend much time minimizing the downside Andrey Shirben - SYD Ventures
THE PORTFOLIO APPROACH • The roulette rule • Let the statistics work for you, not against you • Vertical diversification • Geographical diversification • Stage diversification Andrey Shirben - SYD Ventures
“NEVER IGNORE A GUT FEELING, BUT NEVER BELIEVE IT IS ENOUGH...” (ROBERT HELLER) Andrey Shirben Andrey@SYD.vc @ashirben @SYDVentures www.SYD.vc