Do VCs and Angels Sit in the Same Boat? 

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Should-all-eggs-go-into-one-basket? When-it-comes-to-start-ups-you have-no-choice

Part 1: “Diversification” From time to time people ask me whether investing selectively in start-ups as a “profession” is not quite an irresponsible gamble, especially if, like in my case, you have practically no other current sources of income. This question is meant rhetorically, because the people who ask and I, we know that the risk I am prepared to … Read More

Was VCs und Business Angels verbindet – und was sie unterscheidet

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Should-all-eggs-go-into-one-basket? When-it-comes-to-start-ups-you have-no-choice

Teil 1: „Diversifikation“ Hin und wieder werde ich gefragt, ob denn das selektive Investieren in Startups als „Beruf“, nicht ein unverantwortlich riskantes Vergnügen darstelle, insbesondere dann, wenn man, wie ich, über praktisch keine anderen laufenden Verdienstquellen verfüge. Dies ist eine rhetorische Frage, denn die Fragenden und der Befragte wissen  beide a) dass dieses Risiko tatsächlich ziemlich hoch ist und b) … Read More

Profil

JvHNew articles

Seit 2003 beschäftige ich mich ohne Unterbrechung in der deutschen Start-up und Venture Capital-Szene als Serial Entrepreneur, Investor und Business Angel. Ich konzentriere mich darauf, ausgewählten frühphasigen Start-ups und ihren Gründern dabei zu helfen, ihre Ambitionen in die Tat umzusetzen. Dabei investiere ich jedes Jahr 3 x 100 TEUR in frühphasige B2B-Technologieunternehmen mit erstem Track Record. Mein Fokus liegt zurzeit … Read More

Angel Fallacies 4: Neglect of Founders’ Personal Circumstances

JvHNew articles

Angel Fallacies 4.0: Neglect of Founders' Personal Circumstances

  The personal circumstances of employees are a minefield for employers: Whether in hiring or in staff development: On the one hand, as an employer you have to consider potential risks such as illness, financial stability, family situations, even possible pregnancies; on the other hand, in an ideal world, these issues should really remain a private matter for the respective … Read More

Angel Fallacies 3.1: Neglect of Target Market Imponderables (“Competitors”)

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Typical Angel Fallacies: Neglect Typical Angel Fallacies: Neglect of Contrarian Market Forces

  “So, who are your competitors?”  Within the start-up ecosystem this hypertrivial question is asking for a routine answer. It is one of those questions that usually does not raise any serious worry among start-ups asking for money. But it should. Because these standard responses follow a pattern which can be easily anticipated and usually is astoundingly poor. Variant 1: … Read More

Confirmation Bias and Neglect of Contrarian Market Forces

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Marginalization-of-Startup-Competition

Start-ups need a USP for their products and services that is not just unique but also in demand. There lies a structural tension in this: Whatever is really novel or unique cannot be in demand, because nobody as yet knows about it. So, frequently you can only guess or assume or hope that the new feature of a new product … Read More

Angel Bias and Angel Vanity

JvHNew articles

Angel Bias and Vanity - An Almost Unavoidable Mistake

Investors and serial entrepreneurs usually entertain some good and many not so good investment memories respectively. Angel investors, who usually previously either worked as VCs or (serial) entrepreneurs therefore tend to be biased towards certain investment targets, certain technologies, certain types of business model etc. Their previous roles as investors (fund managers) or (serial) entrepreneurs make angels believe they have … Read More

Rich Man’s Lottery (Part II) The Mystery of the Blind Hunt for Maximum Risk

JvHNew articles

Table with three different drawings showing how investors construe fantasy castles on the grounds of rudimentary factual experience

Verdad Capital founder and (small cap) public equity crusader Dan Rasmussen recently published a report authored by his last summer Harvard intern Blake Patterson. The melody of the article matches Rasmussen’s bias towards public – and his highly critical attitude towards private equities as reported last week among other sources by the NY Times. So, is he right? In Venture … Read More

“Rich Man’s Lottery”? VERDAD CEO Rasmussen questions VC Business Model – Is he right?

JvHNew articles

Rich Man's Lottery, is Rasmussen right?

  Verdad Capital founder and (small cap) public equity crusader Dan Rasmussen recently published a report authored by his last summer Harvard intern Blake Patterson. The melody of the article matches Rasmussen’s bias towards public – and his highly critical attitude towards private equities as reported this week among other sources by the NY Times. The newsletter report The Lure … Read More