STAN Talks

On April 11, 2024, we held an online STAN Talks session on the topic of "How to Start Startup Investing."

The session featured Rem Darbinyan, who is a STAN Angel, a Serial Entrepreneur and Angel Investor with over 60 investments and LP in VC funds. He is also the founder of SmartClick, a proprietary computer vision solution provider, as well as the founder & CEO of ViralMango, a startup utilizing AI to offer comprehensive insights into influencer and creator discovery, alongside in-depth analytics.

During the first part of the discussion, Rem focused on the reasons why startups often fail. He shared insights on well-known cases such as Tumblr, Better Place, Quibi, and WeWork. Rem emphasized the importance of examining the team's alignment, expertise, and market understanding before investing. He also provided advice on avoiding common mistakes that startups make, particularly in areas such as financials, product development, and market understanding.

Rem went on to explain the history of angel investing, sharing that the term was first used in the 1900s to describe wealthy individuals who donated money but didn't expect a return. It wasn't until 1978 that the concept of angel investors investing in startups became popularized by William Wetzel, a professor at the University of New Hampshire.

Rem encouraged investors to focus on startups with a clear product-market fit, a solid understanding of their industry, and a clear competitive advantage. Additionally, he shared his experience in validating potential startups for investment by tracking their online performances. He emphasized the differences between angel investing and investing in venture capital funds. Furthermore, Rem discussed the low success rate of startups, with 90% failing over their lifetime, and the challenges of investing in them.

He also highlighted the importance of understanding the Minimum Viable Product (MVP) concept and the risks involved in startup investing. Rem advised investors to make informed decisions, focus on portfolio diversification, and look for startups with a strong team and a clear market need. He recommended platforms like Y Combinator and Angel List for discovering potential investments.

Finally, he emphasized the importance of networking and attending startup events.

Here are some key takeaways from Rem's talk

• It's important to understand that the majority of startups fail, and even successful investments may face challenges in achieving significant growth.
• Having personal experience in starting and running a startup can provide valuable insights and help angel investors make informed investment decisions.
• Understanding the startup market and learning from industry feedback is crucial for successful angel investing.

Rem suggested that joining an angel network like STAN would be a good starting point for those who are interested in investing in startups.