10 Investor Insights from Lead Investor — Michael Wellesley-Wesley
A Funderbeam exclusive interview with a +30 year veteran in the investing and entrepreneurship scene.
Since the launch of Funderbeam, we have had a number of champions who discovered us early and propelled us to new heights. This showcase is intended to highlight one of our ambassadors and bring their experiences and insights to you.
In this edition, CEO, investor, and entrepreneur, Michael Wellesley-Wesley will share some of his investment principles and opinions from his extensive +30 year career. But before that, we’ll share with you the context of how Michael came to know Funderbeam.
First off, thanks for sharing your time with us Michael. Could you start us off by briefly sharing how you originally discovered Funderbeam?
It’s my pleasure. I first came across Funderbeam when I was investigating the impact and evolution of blockchain and its possible use cases. This journey led me to Estonia where I was fortuitously introduced to Funderbeam. The Founders impressed me enormously with their vision, integrity, and work ethic. Since my first investment, this relationship has evolved to where I now find myself as the Lead Investor in their current financing round.
Michael, as an early-stage investor, what questions do you always ask yourself while you’re evaluating a business and its management team?
Well, one of the first things I ask is, what current or emerging problems does the business address and is the addressable market global? Then, I examine whether their solution is truly innovative, disruptive, low cost, scalable, and democratised? Additionally, will it make the World a better place?
From here, it is a natural progression to focus on the company’s leadership team. For example, are the Founders enthusiastic and energetic people I can trust? As an investor, I have to have an emotional draw and desire to want to join them on their entrepreneurial journey and to do so, I need to trust them. Beyond this, I investigate their relevant experience, which provides me with the confidence they can execute their plan and the belief they are flexible enough to adapt when and where necessary.
Drawing from your experience investing in early-stage companies for 30 years — what is the most interesting lesson you have learned, thus far?
To never play it safe. Most early-stage companies fail so consider investing in companies that are truly innovative and disruptive. Avoid the ‘Me Too’ knockoffs. Invest in excellent people with startling ideas. Invest in the companies you can be proud of when they succeed.
When it comes to making investments, are you sector agnostic or do you focus your investments in a specific area?
In a sense, I am sector agnostic because I invest in digital innovation and digital disruption, which impact every industry vertical. However, I never invest in mining, fossil fuels, BioPharma, chemicals, retail, fashion, or entertainment/hospitality. I only invest in the digital disruption that will bring change to traditional industry sectors. So, ultimately, I’m a bit of both.
Will you tell us about some of your favourite portfolio companies?
One of my current favourites is Conduce, a data visualisation and analytics company focused on global supply chains and logistics. I am also nuts about my own startup, Green Edge Cloud, which forms part of the Threefold Global Grid, an edge cloud network running on Blockchain, and powered by our own digital currency.
Clearly, I’m also super enthusiastic about Funderbeam, which was born in Estonia but has now gone global. For me, Funderbeam is a true disrupter — It has a great fundraising platform (as do others), a huge database of intelligence on global startups (as do others), and a user-friendly, 24/7 operational global marketplace, where shares (convertibles and bonds too) in private companies can be traded. All of the above combined provides a brilliant offering based on blockchain that is completely unique, secure, and offers private investors with the possibility of liquidity — a huge emerging asset class.
In your opinion, what do you think will present the most opportunity for early-stage investors over the next 18–24 months?
Where the Internet is concerned, I believe we will see the start of a generational shift to decentralised, distributed solutions and applications (dapps) that will aim to restore personal data privacy to the individual. The current advertiser-supported model will be disrupted so I would look towards the next-gen distributed app developers and edge cloud disrupters. For those with strong nerves, I also think next-gen cryptos or crypto 2.0 will birth really useful utility tokens backed by assets of real value.
The internet of things (IoT) industry will continue to grow as connected devices rising from 7 billion to 30 billion in the next few years so certainly this remains an area to follow. In addition, as AI continues to be an interesting field so will new approaches to real-time data decision-making tools such as data visualisation. Lastly, despite the hype, Blockchain remains a game changer across many verticals and companies like Funderbeam will disrupt the process of capital formation as well as the private and public stock markets.
From a global perspective, where are you seeing the most exciting early-stage opportunities? Which are the ‘ones to watch’ or most underrated?
I have spent most of my career in the USA near the venture ecosystems around Silicon Valley and Boston, which have created extraordinarily successful companies. However, the rest of the world is catching up and there are pockets of innovation springing up in every country. Estonia is a poster child for innovation of course, but I’m sure future global success stories are being worked on from Singapore to Sydney and Berlin to Dubai. Not to mention China and India. The 21st Century is the digital century, the pace of change will only accelerate, which means the window of time to generate a return on investment that rewards risk-taking will continue to shorten.
What book or podcast do you recommend to friends and family?
Mostly various TED talks and anything written by Yuval Noah Harari. He has a wonderful way to make us question our assumptions about who we are, how we got here, and where we are heading.
Tell us something people are surprised to learn about you.
I try to spend as much time as I can in remote places preferably with a fly fishing rod in my hand.
To conclude our time with Michael, we asked him about the current campaign he is leading — ours!
To wrap up our chat Michael, would you please share the primary reasons you chose to invest in Funderbeam?
I think Funderbeam can become the model for future stock exchanges and capital formation for private and public companies alike. This has enormous potential. I also love the way the platform levels the playing field for the small investor and allows them to invest small amounts in exciting companies with a very low commission structure.
If you enjoyed this, you should read investor, Alex Gibb’s article about establishing resilience within your portfolio companies.
Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement.
The information appearing in this blog post is approved as a financial promotion by Funderbeam Markets Limited (authorised and regulated by the Financial Conduct Authority under FRN 794918). Complete and comprehensive information about an investment opportunity is only available to the investors who have been approved by a Funderbeam group entity. Funderbeam does not provide investment advice or any recommendation to invest. The investment opportunity should not be considered as an offer to the public and is not directed at or offered to anyone located in a jurisdiction where it is unlawful to do so.
