Angel investing should be approached as a form of charity rather than a way to make money, and investors should consider the potential return and value of smaller investments, invest quickly, stay in touch with YC founders, and invest in people even if their idea seems stupid.
Investors should scale their check size based on the amount of money they have and the potential return, but should also consider the value of making smaller investments to think more critically about their choices.
Invest in people even if their idea seems stupid, as a truly impactful investor can change the direction of a company, but YC startups should go after many investors as the majority of YC companies will fail and missing out on big companies can be due to being on the fence or being too busy helping other companies.
If you have conviction, invest in people even if their idea seems stupid.
A truly impactful investor can change the direction of a company, but it's rare, so YC startups should go after many investors.
The majority of YC companies will fail and between 20-30% of companies will raise follow-on funding post demo day, and missing out on big companies can be due to being on the fence or being too busy helping other companies.
YC's secret to success is their open application process and focus on selecting top talent, while constantly reflecting and improving their program.
YC is careful about investing in companies with messy cap tables and low equity, and while large companies may be better at identifying talent, the process of acquisition can introduce many problems, and it's easier for YC to fund companies than for individuals to get to yes.
Over-intellectualizing decisions and producing lengthy documents may be a waste of time, as confidence in the process and diminishing returns with analysis should be considered when investing.
YC's secret powers are their open application process and belief that networking and raising large amounts of money are less important, and the value of their program lies in the students they select.
YC sets a high bar for talent and grades themselves internally by reflecting on their own feelings and implementing programs to help companies raise series A's.
Office hours with alumni are important for YC partners to learn about their experiences and improve their program, as they are constantly writing the story along with previous classes.
To be an A-plus investor, it's not enough to have a great track record and make a lot of money, as luck plays a significant role in investing.