How To Identify The Best Deals in The Startup World

Read time: 4 minutes.

Welcome to The Eunice Ajim Newsletter, a weekly newsletter that provides actionable ideas to help you invest in Africa, scale your startup, and live a prosperous life.

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Every startup investor has had the sting of a missed 'unicorn' opportunity.

Don't let that be you.

Here's a thread on how to identify and secure the best deals in the startup world (Advice from top venture capitalists):

Seek out unconventional founders.

They're the ones who:

• Might seem a little out of left field

• Don't blend with the traditional tech scene

• Don't fit the "mold"

They bring a perspective and vision that others don't have.

Invest in founders with a deep experience of the problem they're solving.

There's no substitute to hands-on experience in:

• Industry

• Customer pain points

• The product's ecosystem

These founders bring a wealth of knowledge that will help them navigate through challenges.

Invest in founders with conviction.

They have to be the:

• Most passionate

• Most determined

• Willing to do whatever it takes

Their conviction will help them overcome obstacles and persevere.

Invest in founders who have a high level of self-awareness.

People who are self-aware:

• Are more receptive to feedback and learning

• Understand their strengths and weaknesses

• Can anticipate behavior patterns & potential blind spots

They can pivot faster and adjust better.

Invest in founders who are accountable.

They take ownership of:

• Their actions

• The outcomes they produce

• The success and failures of the company

They don't play the blame game and are more likely to take corrective steps.

Invest in founders who have a proven track record of success.

Have they:

• Founded a successful startup before?

• Scaled up a product?

• Found a unique solution that solves a problem?

If they have, they know what it takes to win.

Invest in founders who have built a strong team.

The team can execute the vision:

• Focus on product development

• Handle marketing and sales

• Build out the infrastructure

Their strengths complement each other.

Invest in founders who have a clear vision for the future.

Can they articulate their vision:

• Clearly?

• Inspiringly?

• With a well-defined roadmap?

This ensures they're not just "winging it."

Invest in founders who value people over ideas.

A great team with a "good" idea can do more than an average team with a "great" idea.

Remember, you're investing in a team, not just an idea.

Invest in founders with "grit."

Gritty founders never give up, even when:

• Times are tough

• The product has flaws

• Investors are hard to convince

They keep pushing through.

Summary:

• Seek out unconventional founders

• Invest in founders with deep experience

• Invest in founders with conviction

• Invest in founders who have high self-awareness

• Invest in founders who are accountable

• Invest in founders who have a proven track record of success

• Invest in founders who have built a strong team

• Invest in founders who have a clear vision

• Invest in founders who value people over ideas

• Invest in founders with grit

Investing in these kinds of exceptional people can have immense payoffs.

Let’s take a look at the podcast episodes:

How Do You Find The Best Deal Flow & Types of Venture Portfolio Construction

In this episode, Eunice Ajim discusses how to choose the right company to invest in and the strategies for finding deal flow. She explains the inbound and outbound strategies used by venture capital funds and the importance of marketing and creating content. Eunice also shares insights on constructing a portfolio and the two main models used in the startup ecosystem: power law and spray and pray.

Takeaways

• Joining an angel syndicate can help angel investors find deal flow.

• Venture capital funds can attract companies through marketing and collaboration with other investors.

• Portfolio construction involves determining the number of companies to invest in and the allocation of capital.

• The power law and spray and pray models are two approaches to investing in startups, each with its own advantages and disadvantages.

If you enjoy the podcast episode, please consider subscribing, liking, and sharing them with your network. You never know who might find this information helpful. 

That’s it!

See you next Wednesday.

I'd love to hear from you:

What are your thoughts on the podcast episode?

Tweet at me @euniceajim or reply to this email and I'll do my best to get back to everyone.

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