[HN Gopher] Ask HN: How do I find early stage startups to invest...
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       Ask HN: How do I find early stage startups to invest in?
        
       I'm interested in being a very early seed/angel investor and want
       to find tech startups that haven't even received major funding yet.
       I'm aware of secondary markets but they cater to more mature
       startups.
        
       Author : altdataseller
       Score  : 24 points
       Date   : 2022-04-12 17:58 UTC (5 hours ago)
        
       | anamax wrote:
       | It's interesting that you don't say what you have to offer an
       | early tech startup other than money.
       | 
       | I mention that because the best startups are in a position to get
       | more than money from investors.
       | 
       | If all you have is money, you're looking for early startups that
       | are reasonably likely to succeed but don't need more than money.
        
       | bratak wrote:
       | All you ever need: Stan Weinstein, Stage Analysis
       | 
       | If you can master this, you will become very wealthy too over
       | time. Never look at any other trading / investment strategy again
       | or you fail with this, period.
       | 
       | Just learn it, start super tiny (like 1 Stock if necessery) and
       | grow your positions with confidence. In the beginning it's not
       | about making money, but learn and execute as perfect as possible.
       | Same as if you learn to fly a Plane...
       | 
       | If you seriously do this, money will flow in your account and you
       | can use the stock market like an ATM.
       | 
       | https://www.scribd.com/doc/100123807/Stan-Weinstein-Secrets-...
       | 
       | Hint: To screen for the right stocks I use Chartmill.com They
       | have the screener perfectly prepared for Stan Weinstein Stage
       | Analysis.
       | 
       | So there you have it - all you need Now it's your take...
       | 
       | Happy Christmas SS8-)
       | 
       | ...if one day you reached your financial freedom, tell another
       | person how you did it. And don't forget to live a happy live, no
       | matter how much money you have...
        
         | qualudeheart wrote:
         | Is Stan Weinstein paying you to post this?
        
       | kylixz wrote:
       | If you want to get into public safety tech, I'm looking for
       | investors.
        
         | kormoc wrote:
         | I'd like to hear more about what you're looking for. Feel free
         | to hit me up with my username at gmail.
        
       | bhuj2000 wrote:
       | My friend is working on a similar project around connecting
       | startups and investors - http://www.theclosedround.com/
        
       | adg001 wrote:
       | Cardinality is key. You may want to ensure to invest your
       | capitals in many startups of your choice at the same time.
       | Predicting which startups will succeed is hard. Investing in only
       | a few of them may not give you the desired ROI, because they may
       | all fail before raising the next rounds of funding that would
       | give you an exit.
        
       | holykin wrote:
       | Presuming you are an accredited investor, have you considered
       | https://www.angellist.com/syndicates ? Or are you looking for
       | even earlier investments that are in the family/friends stage?
        
       | jppope wrote:
       | Why not just become friends with entrepreneurs?
        
       | jilijeanlouis wrote:
       | Note : I invested in more than 20 startups and I'm a founder
       | myself.
       | 
       | The best way is : 1 find someone you know who started a startup
       | in your area, Or ask a founder during an interview or during a
       | meet up or directly on LinkedIn.
       | 
       | Spend 30min to 1h with them and ask about their pre-seed and seed
       | round there is a 99% chance that Business angels were included in
       | these rounds. Explain that you want to invest and if they would
       | be kind enough to introduce you to the smallest investor in its
       | cap table.
       | 
       | Now... you're done it's just a matter of network.
       | 
       | Explain to the investor... and she/he will redirect you etc etc
       | etc.
       | 
       | Ask for his/her WhatsApp to keep chatting and stay in touch in
       | case they see a deal in your area of expertise. Now it's a matter
       | of reputation : what do you bring to a startup.
       | 
       | If you do a bit of pro bono in your area of expertise to a
       | founder in exchange of network it will be even better. They will
       | likely recommend you to other founder during their seed or
       | preseed.
       | 
       | It's all about network.
        
         | jilijeanlouis wrote:
         | Also : as a matter of fact there are 2 kind of startups ; the
         | one that have overcommitted financing round and the one are
         | under committed / struggling getting financing.
         | 
         | If the startup is looking for money meaning case 2 : not sure
         | it's a good idea to invest at the begging unless you know what
         | you are doing
         | 
         | In case 1/ if it's overcommitted remember that there is a
         | limited amount of capital in a company and the founder doesn't
         | need money (he is over committed) he/she is looking for smart
         | money : meaning if you want to be in the cap table : bring
         | smartness. There is no free lunch ;-)
        
       | jasfi wrote:
       | How much are you looking to invest?
        
       | YossarianFrPrez wrote:
       | The more I think about it, the more I think a good way to find
       | under-financed early stage startups is to try working out of a
       | few co-working spaces. This will allow you to really get "on the
       | ground" and see who is working on what, and why. I spent my 20s
       | more or less working in co-working spaces, and they are good
       | places to check out, especially if you wanted to a) spot new
       | opportunities, b) try to 'moneyball' the local scene, c) identify
       | unvarnished / unpolished potential, and d) get a feeling for what
       | is going on at the 'bleeding edge' of startups.
       | 
       | Some notes, based purely on my own experience (YMMV):
       | 
       | * There is a _large_ amount of variance, and basically people
       | with ideas that won 't work or decision-making / management
       | practices that won't fly haven't yet been weeded out of the
       | market. So it might be worth thinking that you'd be happy if you
       | had a hit rate of less than 1 out of 10 or 1 out of 15-20.
       | 
       | * I wouldn't tell anyone that you are looking to invest when you
       | initially meet them, because you'll immediately cause an
       | incentive problem. Instead, by working on a side project, or
       | something, you could get to know other founders as a secret
       | shopper / peer.
       | 
       | * The reason the early stage startups haven't received major
       | funding yet is due to several factors. I believe the most
       | compelling one is that the founders aren't good at making
       | themselves seem "investor friendly." (Assuming the concept and
       | execution show promise, there is positive signal, etc.) On a more
       | general note, if you are going to "assess the person" over other
       | factors, working along side them might be a good way to assess
       | them.
       | 
       | What I'm saying is that being proactive might be a great way to
       | find what you are looking for; which from what you write... by
       | the time you "hear" about them it will be "too late."
        
       | monistowl wrote:
        
       | fsflover wrote:
       | https://puri.sm/ir/convertible-note/
        
       | DamonHD wrote:
       | Seedrs/CrowdCube is one venue for some.
        
       | ilrwbwrkhv wrote:
       | You might want to go through https://news.ycombinator.com/show
       | and contact any programs which catches your eye?
        
       | sydthrowaway wrote:
       | - OurCrowd
       | 
       | - Founders Club
        
       | marvel_boy wrote:
       | In UK there is: https://www.crowdcube.com You can invest in early
       | stage European startups.
        
       | jes81 wrote:
       | Depending on your geography, local angel groups can be a good
       | place to start as they will provide a pipeline of local startups
       | and you'd have the opportunity to connect with other investors
       | looking at a similar stage.
       | 
       | As several have mentioned, co-working spaces or pitch events can
       | also be a place to find deal flow. Oftentimes you'll find less
       | experienced entrepreneurs with less formed ideas at these events.
       | As an investor this presents a great opportunity to provide value
       | beyond capital, but may also raise concerns as to the
       | entrepreneur's capabilities.
       | 
       | My greatest finds to date have come when I'm looking in a
       | specific industry or at a specific problem statement. I'm a bit
       | later stage than what you're looking for (Series A - small Series
       | C), so I look for companies with a website (so they can actually
       | reach customers) and search for news releases or any PR they've
       | done. At that point its pretty easy to have an intro conversation
       | and determine whether or not it's something worth pursuing.
       | 
       | Regardless, it takes a lot of conversations to find the right
       | investment candidates.
        
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       (page generated 2022-04-12 23:02 UTC)