Don’t go chasing waterfalls overhyped companies

Be careful not to put too much weight on what other investors think. Instead, lean on insights from contacts you trust. Also be open to that random email from a company you haven’t heard of– being unreasonably exclusive could cause you to miss a huge opportunity.

In startup land, there are more people who want to invest in good startups than there are good startups– this makes your reputation essential. Founders are also now doing reference checks on investors before making deals. To keep a clean rep, be clear about your reasons for investing and be as available as possible.

Some of your best investments will likely feel the most expensive to you! Value investing is hardly ever a winning strategy– this is not the time to haggle or hunt for a bargain.

Though it sounds counterintuitive, it’s easier to start a hard company than an easy company so don’t write off “easy” companies. “Easy,” less risky companies often have trouble getting investor attention.

Founders must have great ideas often and be able to explain their product with ease. Top founders can execute at a breakneck speed and have an incredible rate of improvement. You won’t see a return investing in an average founder.

When looking at the market for a company, the first thing to look at is the growth rate of the market. A small market with a high growth rate is ideal.

Look past the hype! Look at how many people are already using the platform or product, how often they’re using it, and whether or not you think they’re telling their friends about it unprompted. Many bad ideas look like good ideas; good ideas that look like bad ideas can be breakthroughs.

Don’t invest in a product unless you think it’s excellent– mediocre products will never return your investment.

Human intuition about exponential growth isn’t very good… in fact, it’s pretty crap. Be sure to model out the far future vs. short term company growth. When looking long term, be sure to look at least 10 years from where the company is now.

Use your own sector-specific knowledge when you invest. This will give you an edge on other investors when analyzing the future success of a product!