Lessons learned from David Rose

David Rose, Founder of Gust and New York angels, gave one of the best talks I've heard in a while at WWW Firenze. Here are the slides and some notes I took:

alt as a side note, David mentioned that angels invest in 1 in 40 deals, VCs invest in 1 in 400 deals

alt and angel investing aims for a 25% annual return

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alt out of an example of 10 investments

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alt with the anticipated 25% return over 6 years, i should get 3.8x ROI. And the deals that return money should return 30x times to make up money for total investable capital

alt though there is a real downside to being early

alt there also needs to be scale in investing in order to make 3x returns taking into account probability of returns, for example 100 vs. 5 portfolio companies

alt this is in comparison to the SV approach of going for the unicorns. It's worked for David Rose

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I managed to grab a side chat with David to find out more about the signals he looks for in entrepreneurs. He said, in order of priority:

Integrity (Trust)
Passion
Experience
Commitment (which usually comes with vision)
Coachable

One key question David uses to distill better information about the entrepreneur is to ask about upbringing. He feels there are patterns that emerge in how entrepreneurs make decisions throughout life.

All in all - one of the best hours I've spent in a while. This interaction made that Easyjet flight just a bit more ok.