Episode Summary:
In this episode, Maxine Minter and Cheryl Mack discuss their journeys into angel investing and share valuable insights for aspiring investors.
They highlight the importance of community and learning in the early stages of angel investing and provide guidance on different investment strategies. Maxine and Cheryl also emphasize the need for diversity in the investor landscape and discuss the changing dynamics of the startup ecosystem. They address common misconceptions about angel investing and offer practical advice for those looking to get started in the field.
Key topics discussed in this episode include:
• The different paths to angel investing
• The role of education and community in learning about investing
• The significance of diversity in the investor landscape
• The challenges and rewards of angel investing
Episode Sponsors:
Chapters:
Introduction and Early Discussion
00:00:00 - Introduction to the show First Cheque
00:01:09 - Maxine's journey into angel investing
00:02:53 - Cheryl's accidental entry into angel investing
Community and Diversity
00:05:00 - The importance of community in angel investing
00:07:45 - The lack of diversity in angel investing
00:08:49 - The growth of inclusive communities and educational programs
00:09:47 - The impact of funds in promoting education and community
Investment Approaches
00:10:33 - Introduction to angel investing and different on-ramps
00:11:38 - Different ways to invest: direct, syndicates, and funds
00:12:58 - Investing in funds with smaller minimum investments
00:14:30 - Prediction of more micro funds in the future
Learning and Participation
00:15:04 - Importance of maximizing learning in early investments
00:16:01 - Different reasons for angel investing
00:17:11 - Diversifying and creating a higher return profile
Diversity and Inclusion
00:17:50 - Lack of representation in angel investing
00:18:49 - Opening doors for people outside the ecosystem
00:20:23 - Tailoring on-ramps based on investment goals
Community Learning
00:21:42 - Discussion of angel groups and syndicates
00:23:18 - Value of collaborative discussions
00:25:19 - Importance of asking questions and learning
Resources and Education
00:29:38 - Need for lawyers and accountants
00:31:23 - Book recommendations: "Angel" and "Venture Deals"
00:31:48 - Discussion about writing an angel investing book
Risks and Considerations
00:33:13 - Challenges and risks of angel investing
00:34:44 - The "j curve" and investment psychology
00:37:15 - Advice on investment allocation
00:38:28 - Exploring alternative asset classes
Resources:
Angel Investing: A Comprehensive Overview
Approaches to Angel Investing
Angel investing can be approached through various paths:
Direct Investments: Allow for personalised involvement with startups.
Syndicates: Provide opportunities to collaborate and diversify investments.
Investing in Funds: Offers access to professional management and diversified portfolios.
Each approach has unique benefits and learning opportunities.
Importance of Community
Building a strong community of fellow investors is crucial for:
Learning: Sharing insights and experiences.
Informed Decisions: Collaborative decision-making processes.
Angel groups and syndicates are valuable platforms for collaboration and knowledge sharing.
Promoting Diversity
Diversity in the investor landscape is essential to:
Support Underrepresented Founders: Encouraging inclusive growth.
Drive Innovation: Fostering varied perspectives and ideas.
Investors should actively seek opportunities to invest in diverse founders and contribute to a more inclusive startup ecosystem.
Risk and Long-Term Perspective
Angel investing requires:
Risk Tolerance: Understanding potential losses.
Patience: Acknowledging that returns may take time to materialise.
Continuous Learning
Staying informed about the latest trends and developments in the startup ecosystem is key to becoming a successful angel investor.
Resources for Angel Investors
Organisations and Platforms
The Council: Founded by Maxine Minter and friends from a coworking space; scaled into a larger organisation.
Zeta: The first company Maxine Minter invested in, led by Aditi.
Aussie Angels: A platform supporting angel investing in diverse identity groups.
Startmate: Runs the First Believers program for angels; Cheryl Mack is a mentor here.
Afterworks: Hosts community calls for angel investing.
University Programs on Angel Investing
University of Queensland (UQ): Angel investing program.
University of New South Wales (UNSW): Angel investor course.
Wade Institute: Offers the VC Catalyst course.
Southern Angels (SA): Collaborating with the University of South Australia on a program.
Notable Syndicates
Flying Fox Ventures (formerly Eleanor Venture): Provides insights into their investment decisions.
Recommended Books
“Angel” by Jason Calacanis.
“Venture Deals” by Brad Feld.
Noteworthy Mentions
First Believers and Explorers Program: Participated in by Cheryl Mack and Maxine Minter.
ASX (Australian Securities Exchange): Discussed in relation to investment trends.
