1. www.SYD.vc
HOW TO INVEST IN
TECHNOLOGY BASED
STARTUPS
Andrey Shirben
@ashirben
@SYDVentures

2. WHAT DO WE INVEST IN?
Mining
Real Estate
Finance
Tech
Traditional
Not Really
“Safe”
Hell No
ROI
Binary
Term
7-10 years
Avg.
Investment
10K-10M
Portfolio
Share
???
Andrey Shirben - SYD Ventures
2

3. WHY TECH?
• Investing in Tech is usually more about
investing in people rather than in ideas
• While it’s a high-risk investment – it can
generate a higher upside (when it’s successful
of course)
• Making a real contribution to the world of
science/technology
Andrey Shirben - SYD Ventures
3

4. A GROWING SECTOR
Andrey Shirben - SYD Ventures
4

5. SAY GOODBYE TO YOUR MONEY
The healthiest approach for tech investments
Andrey Shirben - SYD Ventures
5

6. THE TEAM
• Most valuable part of a start-up company
• Can make/brake the idea
• Need to be highly motivated,
hungry for success & ready
for some shifting
• Experience is overrated
Andrey Shirben - SYD Ventures
6

7. THE PRODUCT (RISK ANALYSIS)
•
•
•
•
Why? What’s the pain?
What’s the business model?
Is the market big enough?
Is there enough marketing budget?
Andrey Shirben - SYD Ventures
7

8. BE CAREFUL OF:
•
•
•
•
Hockey Stick Graphs
Solutions to non-existing problems
Viral promises - it’s not that easy…
Do your own market research – ask
around, consult with people that understand
the specific industry
Andrey Shirben - SYD Ventures
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9. DON’T BE SCARED OF:
• Young, inexperienced team – most likely they
will do anything to prove themselves
• Technology – technical risk can typically be
handled, while market mismatch can not…
• Lack of short term revenue
• In short - follow your instinct
Andrey Shirben - SYD Ventures
9

10. WHEN TO INVEST?
•
•
•
•
Pre seed
Seed
Round A
Round B
Pro’s & Con’s of investing early vs. later
Andrey Shirben - SYD Ventures
10

11. VALUATION
• No one actually knows
• Traditional methods surely don’t work
• Whatever you’re willing to pay
1,000,000
Andrey Shirben - SYD Ventures
11

12. INVESTOR’S APPROACH
•
•
•
•
Think about the best interest of the company
Respect the entrepreneurs
Aim for the long term
Don’t spend much time minimizing the downside
Andrey Shirben - SYD Ventures
12

13. THE PORTFOLIO APPROACH
•
•
•
•
•
The roulette rule
Let statistics work for you, not against you
Vertical diversification
Geographical diversification
Stage diversification
Andrey Shirben - SYD Ventures
13

14. “NEVER IGNORE A GUT
FEELING, BUT NEVER
BELIEVE IT IS ENOUGH...”
(ROBERT HELLER)
Andrey Shirben
Andrey@SYD.vc
@ashirben
@SYDVentures
www.SYD.vc