My investment process is that I have no set process.
People often ask me about my process for selecting investments. It often surprises them when I say that I don’t have a process, at least not in the traditional sense. My “process” can really be summed up like this: people.
I’ve always been a people-centric investor. For me, it comes down to whether or not you are the right person for the project. That’s it.
When evaluating a person for investment, these are the three main things that I look for:
- Intellectual inconsistencies or evading problems. These people are generally hard to work with.
- Logical walk through of their argument. No exaggerations.
- Honesty. If you tell me that you have absolutely no problems, but you are raising money, I call bullshit.
My best investments so far have involved people that I totally believed in: Critical Watch (my brother and sister — I know this is cheating but a 30x return), Sprig (Gagan Biyani — met through Founders Institute, totally my opposite, but a kickass entrepreneur), and CargoChief (none of you have heard of this yet, but probably my best investment to date). None of these would have passed any due diligence test, but all of them where based on great people. Have I had investments in great people that returned 0x? Absolutely! Sprig was sent out with a 24 hour deadline. No way I could have made a decision on this one, except I knew Gagan and felt he has a lot to prove to the world.
As an investor, there’s no need for hostile questioning. The best way to evaluate an opportunity is to evaluate the person behind it. From my experience, I’ve found it’s better to get on the entrepreneurs’ side of the table, put their hat on, and listen to what they have to say.
I want everyone to succeed, which is why I am able to come at it from a very empathetic point of view. So far, it’s been working out quite well for me.
If you know of any great people that I should consider adding to our fund, feel free to send me a note at email@example.com. Thanks.