Tag: tim ferriss

Advice for Investing in Startups

Una version de este post aparece en español con el titulo Lo Que Debes Saber Antes de Invertir en Startups. También fue una charla (video).

As startups and tech investing has gone mainstream with things like AngelList, Shark Tank, The Social Network, the proliferation of accelerators and incubators, and the celebritization of founders and VCs, more money has flowed into the industry.

Most non professional investors interested in startups are starting to dabble in early stage companies as angel investors. Friends often send me deals they’re think about investing in, asking for advice.

Here’s a concrete example of a typical question from a successful entrepreneur friend looking to invest:

I am starting to look at some investments in startups that have proven initial product-market fit and revenue traction with positive gross margins. I have found some great opportunities [and] I am only targeting businesses that meet my personal criteria. My biggest concern is how I should evaluate the businesses from a valuation perspective. Is there any guide suggested on this?

I personally am finding companies that claim to have a higher valuation than my own company which has greater revenues and faster growth rates, etc. So, that puts off a bit of an alarm in my head but I realize it’s normal in the VC world. I don’t really know how to value a VC backed start up.

I decided to share my answer: (more…)

Interesting Stuff I’ve Read, Listened to and Watched Recently

Here’s some stuff that I think is interesting. Last post in this series from August.


Dishonesty: The Truth About Lies – Why do people lie and cheat? What makes people susceptible to lying? Netflix.

The Queen of Code – Short documentary about Grace Hopper, one of the pioneers in computer technology.


Hillbilly Elegy: A memoir of a family and a culture in crisis – JD Vance. Interview with Vance. This book was eye opening. It chronicles Vance’s journey from a chaotic childhood to graduation from Yale.  One of the best books I’ve read in the past year.

Ready Player One – Ernest Cline – Novel about a near future with virtual reality technology at its core.

All the Light We Cannot See – Anthony Doerr – Set in WWII era Europe, this book chronicles the intersecting lives of multiple people, including a young blind girl. Not high literature, but fun reading. (more…)