Sam goes over the top 8 things he has learned from investing in startups. Sam has invested in 9 startups in the last 8 years and has seen 3 exits and/or partial exits in the last six months. He'll go over the process of investing in a startup, what to look for and what to avoid as well.

Listen to ILAB 179 on iTunes here or subscribe on your favorite podcast app.

Where we are:

Johnny FD – Ukraine / IG @johnnyfdk
Sam Marks – South Carolina/ IG @imsammarks
Derek Spartz - Venice Beach / IG @DerekRadio

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Time Stamps:

06:04 – What do you look for in a start-up?
08:52 – Is it more important to have the management in place than what the company actually is involved in?
12:23 – Is international diversification important in your selection?
13:39 – How do you determine how much you are willing to invest?
14:28 – Are the Start-ups similar to how “Shark-Tank” portrays?
19:06 – #1: Companies take a long time to build and exit
22:05 – #2: Start-ups require more money, that initial investment is not the last investment.
26:15 – #3: Expect big dilution
32:52 – #4: Founder issues are common protect yourself against it
38:48 – #5: Cap tables becomes big issues for mediocre companies
45:10 – #6: Raising money is not the goal, creating value is
47:56 – #7: Valuation isn't important necessarily, what's more important is your entry point and exit point.
53:55 – #8: Nothing is a sure thing until the money is in your bank account
59:09 – What advice would you give to a beginner getting into a start-up?
63:25 – About how long is expected for the second round of investment?
65:16 – What should you look for in an attorney to look over the investment paperwork?
66:41 – What other ways can you be valuable to the company?

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179: 8 Things Sam Marks Has Learned from Startup Investing 01:10:44 Share

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179: 8 Things Sam Marks Has Learned from Startup Investing