Investing in Startups: Lessons from Michael Seibel | Day 2 of Startup Investor School

Key insights

• 🚽
  "Someone described it to me as taking money, flushing it down the toilet, and then very rarely walking up on the street to a million dollars just laying there."
• 📈
  Despite not considering himself a great angel investor, Michael Seibel has invested in several companies with over a $50 million valuation, showcasing the potential for success in early-stage investments.
• 💰
  "If one of your friends is starting a company and you would have FOMO if it would become a billion dollar company just shut up and write him a check."
• 💰
  Not enough investors think about what happens after demo day, but there are often opportunities to invest in good companies six to twelve months later at higher valuations and with more information.
• 🤔
  Investing in startups requires the ability to see potential in founders, even if their ideas may initially seem stupid or unconventional.
• 💡
  An impactful investor can have a rare but significant influence on the direction of a company, as seen in the examples of the Socialcam acquisition and the advice that led to the creation of video systems for justin.tv and Twitch.
• 🌱
  The impact of YC goes beyond billion-dollar companies, as they aim to provide opportunities for founders to take a shot at their ideas and continue the cycle of support in the startup ecosystem.
• 💡
  YC's high bar for talent has created a trend where people understand that being part of YC means being surrounded by extremely talented individuals, perpetuating success.