179: 8 Things Sam Marks Has Learned from Startup Investing

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.

Where we are:

• Johnny FD – Ukraine / IG @johnnyfdk
• Sam Marks – South Carolina/ IG @imsammarks
• Derek Spartz - Venice Beach / IG @DerekRadio

Sponsor:

• Fundrise
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*Johnny and Sam use all of the above services personally.

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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