179: 8 Things Sam Marks Has Learned from Startup Investing

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By Sam Marks Johnny FD, Sam Marks, and Johnny FD. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Sam goes over the top 8 things he has learned from investing in startups. Sam has invested in 9 startups in the last 8 years and has seen 3 exits and/or partial exits in the last six months. He'll go over the process of investing in a startup, what to look for and what to avoid as well.

Listen to ILAB 179 on iTunes here or subscribe on your favorite podcast app.

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Time Stamps:

  • 06:04 – What do you look for in a start-up?
  • 08:52 – Is it more important to have the management in place than what the company actually is involved in?
  • 12:23 – Is international diversification important in your selection?
  • 13:39 – How do you determine how much you are willing to invest?
  • 14:28 – Are the Start-ups similar to how “Shark-Tank” portrays?
  • 19:06 – #1: Companies take a long time to build and exit
  • 22:05 – #2: Start-ups require more money, that initial investment is not the last investment.
  • 26:15 – #3: Expect big dilution
  • 32:52 – #4: Founder issues are common protect yourself against it
  • 38:48 – #5: Cap tables becomes big issues for mediocre companies
  • 45:10 – #6: Raising money is not the goal, creating value is
  • 47:56 – #7: Valuation isn't important necessarily, what's more important is your entry point and exit point.
  • 53:55 – #8: Nothing is a sure thing until the money is in your bank account
  • 59:09 – What advice would you give to a beginner getting into a start-up?
  • 63:25 – About how long is expected for the second round of investment?
  • 65:16 – What should you look for in an attorney to look over the investment paperwork?
  • 66:41 – What other ways can you be valuable to the company?

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