The Art of Getting to Conviction: Strategies for Successful Investing

First Cheque

Episode Summary:

In the latest instalment of our podcast series, Cheryl Mack and Maxine Minter delve into the intricate world of early-stage investing, shedding light on the varied approaches to gaining investment conviction. This episode serves as a guide for both novice and experienced investors who aim to refine their decision-making strategies when backing new ventures.

As Cheryl and Maxine unravel the decision-making fabric of early-stage investing, listeners are taken on a journey through the critical thought processes that investors employ. From angel investing intuition to fund management rigour, the diverse strategies and considerations are laid bare. Key topics such as founder assessment, market sizing, and investment criteria are explored in detail, offering a valuable distilled wisdom that promises to enhance the listener's own perspective on startup investment.

Key Takeaways:

• Every investor has a unique process for achieving conviction in startup investments, which can evolve over time through experience and iterative learning.
• The consideration of factors like founder qualities, market potential, and existing competition varies between individual investors and forms the basis of their investment decisions.
• Portfolio construction and risk assessment play significant roles in an investor's decision to back a company, mainly when operating within a fund structure.
• Intuition and instinct also influence investment choices, sometimes siding with conviction even when faced with incomplete or ambiguous information.
• The balance between personal investment ethos and the structured approach required by funds highlights the complexity and art form of early-stage investing.

Notable Quotes:

• "It's a process...an invitation to iterate your way to a successful process and continue to measure yourself." - Maxine Minter
• "The nature of especially early stage investing is that it's risky." - Maxine Minter
• "For me, it's founder... I need to feel like this is the right founder for the...market problem space." - Cheryl Mack
• "It's really rare, if ever, that you get to a...definitely yes...always no questions." - Maxine Minter
• "The spectrum of yes to hell yes...there are so many different ways of doing it and so many different timescales to be considering on." - Maxine Minter

Thanks to our sponsors for helping to make this episode of First Cheque possible:

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