In August 2018, I decided to invest in 50 startups over the course of 3-5 years. My plan is to deploy $10,000 in capital in 50 startups, averaging $200 per deal, roughly one investment a month. For comparison, accredited individual generally $25,000 per investment.
By the numbers, I’m a better-than-average angel investor and venture capitalist, but still on a journey to enter the top quintile. As of August 28, 2020, of my investments that have had follow-up raises, I’ve experienced 76.46% on average over 7 investments since 2017. (Of note, 4 investments have not had follow-up funding so they are not included in return calculations.) This averages to >20% IRR every year, compounded (1.2^3=172.80%.) Compare to other investments such as low-fee index funds (7% historically,) real estate (10% leveraged,) or other VC returns (median VC of 11.7%, SeedInvest’s 18%, or Benchmark Capital’s 7% for barely in business VC and 30% for a top tier fund.)
- WhereBy.Us, 2017-07
- Invested at $5MM pre-money valuation, now valued at $15MM, representing. Total d(x): 200% increase.
- Inside.com, 2018-08: Invested in a convertible note with $15MM valuation cap, no raises since August 2018. Latest investor update Q1 2020, still alive. Total d(x): unknown.
- NowRx, 2018-08: Invested at $2 a share, then again at $3.45 a share in Jan 2020. Total d(x): 72.5% increase.
- HyperSciences, 2018-08: Invested at $3.84 a share, raising another round as of Aug 2020 at the same price. Total d(x): 0%.
- KingsCrowd, 2018-09: Invested at $1.12 a share, last trade on NetCapital was $1.80 in March 2020. Total d(x): 60.74% gain.
- Pongalo, 2018-10: Invested at $8MM valuation, no raises since. Latest investor update Q1 2020, still alive. Total d(x): unknown.
- 20/20 GeneSystems, 2018-10: Invested at $3.53 a share, last raised a round at $4.40 a share in May 2020. Total d(x): 24.64% gain.
- SapientX, 2018-11: Invested at $2.50 a share, $5MM valuation, now raising at $0.64 a share, $7MM valuation, but possibly did stock splits. Total d(x): 40% gain.
- Smilelove, 2018-11: Invested at a $9MM valuation, no raises since. Latest investor update Q3 2019, still alive. Total d(x): unknown.
- SeatAssignMate, 2018-11: Invested at $8MM valuation, currently raising at $20MM valuation. Total d(x): 150% gain.
- Loop, 2019-09: Invested at $8.5MM valuation, no raises since. Latest investor update Q2 2020, still alive. Total d(x): unknown.
- Event Hollow ($6m), 2020-05
- Rentberry ($9m), 2020-05
- ARdVRk ($10m), 2020-06
- CodeCombat ($25m), 2020-07
- Contiq ($9M), 2020-07
- StartEngine ($140m), 2020-08
- Nada ($12m), 2020-08
- Solace ($6.5m), 2020-08
- GroomIt ($6m), 2020-09
- Rad Intelligence ($5m), 2020-09
Ready to go from the past to present? Congratulations, you've made it. Without further ado, the Master Dealflow Base is below.