Started investment fund, need advice

[yourule40]

Hey guys,

I wanted to get feedback from anyone here who is into investing, even more helpful if investing in startups.

My friend recently sold his company for $8m USD and I'm partnering with him with my own money as well on an investment fund that we've created for startups (apps/websites/tech overall) and occasionally regular companies if it's something we understand and see potential.

We're registering in Dubai with some bases in Singapore, HK, and maybe a few other places.

I just wanted to know if anyone has any advice on running a fund (from their personal experience) or anything worth noting.

[azguy]

I hate to burst your bubble, but there are a million VC, angel groups out there and:

A) you'll never get the best ideas/companies

B) you'll get guys that couldn't get $$ anywhere else

C) for every winner you'll have 9 losers.

Good luck

[kirksingleton]

Good luck!
I am concerned that you don't know what you are doing if you post this question randomly on a vintage watch site...no offense, I just don't want to see you lose your $$

[Lordofrolex]

Problem with being a VC is the money drys up quick. A simple 100k investment could end up costing in the millions as problems and expansion start kicking in.

[Danny83]

Originally Posted by yourule40

Hey guys,

I wanted to get feedback from anyone here who is into investing, even more helpful if investing in startups.

My friend recently sold his company for $8m USD and I'm partnering with him with my own money as well on an investment fund that we've created for startups (apps/websites/tech overall) and occasionally regular companies if it's something we understand and see potential.

We're registering in Dubai with some bases in Singapore, HK, and maybe a few other places.

I just wanted to know if anyone has any advice on running a fund (from their personal experience) or anything worth noting.

Chris send an email to Chris Sacca since he is local to Us he might listen to you. Ive seen him talking to some guys @Nopa

[beshannon]

For that amount of capital, posting this here is quite strange.

Do you/did you not know what to do before getting started?

[2ltdjorn]

Be Leary of money and friendships

[Etschell]

i wouldnt put up the money unless your net worth is similar to your friends. just my 2 cents.

now if you want to actually do this then i will give you some words of advice from my friend, "A - always, B - be, C - closing, always be closing, always be closing!!!"

[masyv6]

Originally Posted by beshannon

For that amount of capital, posting this here is quite strange.

Do you/did you not know what to do before getting started?

I was thinking the same thing.

I hope it's not an issue of more money than sense

[George Burdell]

If any potential investee starts their pitch by saying, "This market is X million/billion dollars in size, so if we only get 0.01% market share we'll make Y," run FAR FAR AWAY, and do NOT give them any of your dollars. Unless you never want to see those poor little Washingtons again.

[Watchflair]

Originally Posted by yourule40

Hey guys,

I wanted to get feedback from anyone here who is into investing, even more helpful if investing in startups.

My friend recently sold his company for $8m USD and I'm partnering with him with my own money as well on an investment fund that we've created for startups (apps/websites/tech overall) and occasionally regular companies if it's something we understand and see potential.

We're registering in Dubai with some bases in Singapore, HK, and maybe a few other places.

I just wanted to know if anyone has any advice on running a fund (from their personal experience) or anything worth noting.

I would tend to agree with all the other members on this one.

I see that you are the CEO of an App development company. My question would be: Is your current company at it's peak and fully optimized? Is there anything that you are missing? Anything that you could develop further? Anything you can do to generate more income with what you already have?

Remember the saying: Love the one you're with

Don't forget about your original business ~

If the answer is yes and you are 100% optimized in your current business and are prepared/ready to develop a new business then go for it. But make sure you know the risks and downfalls and angles before you invest your money.

You're a small fish in a pond with many many big fish. One mistake could be fatal. What's your optimum ROI. Could you make the same or close to the same ROI in other forms of investing?

[texex91]

I would wait until you have another zero or two to add to that $8M. Also, sounds like some more executive leadership might be needed as well.

[JABCPA]

Naturally my first post on a Rolex forum would come under an investment type fund but alas:
1) What is the total AUM you plan on running this endeavor with?
2) Who is really going to run it? Are you going to be a member of the GP/IM entity (or its foreign equivalent)?
3) Are you adding outside LPs?
4) For private company investing - what series do you plan? Do you have an investor syndicate?
5) Why foreign registration versus US?

Lastly, why not do a family office set up versus a "fund" unless I'm missing something?

[DeeTee]

Please don't do this.
Your asking for 7 figure advice on a watch forum.

[BNA/LION]

Perhaps time to take a step back, consult your investment advisors and lawyer. If it were me a solid business plan, contracts and exit strategy should things go South would need to be in place.

Sell for $8M after taxes is really around $5M... I believe it takes a lot more $'s to take a serious run at that business...

[Dr.Brian]

I was actually discussing this very thing with one of my old college friends at a party in Gotham last weekend. He was marvelously successful in a niche market and sold his last company for more than 100x your friend's score, generating himself a solid 9 figure pay day. He said he has no interest in "losing millions on a bunch of bull sh*t promises and polished turds." He'd only invest in something that he completely understood in an area that he's worked on before. He also said he would be more likely to just buy it outright than give anyone angel funding. He's done 3 start ups himself and knows how to polish a turd pretty shiny. Though he's actually turned them into gold, unlike 90+% of them.
If a guy worth a couple hundred million with significant experience in startups and VC isn't interested, it may be something to be careful investing too heavily in. His watch BTW... None. :(
Good luck.

[returntorolex]

Originally Posted by Etschell

i wouldnt put up the money unless your net worth is similar to your friends. just my 2 cents.

now if you want to actually do this then i will give you some words of advice from my friend, "A - always, B - be, C - closing, always be closing, always be closing!!!"

PUT THAT COFFEE DOWN!

[mfer]

Orange juice. Worked in "trading places"

[Ronin78]

Originally Posted by returntorolex

PUT THAT COFFEE DOWN!

Coffee is for closers only.

[Danny83]

Guys me and Chris the Op have done some work before he is a smart kid Fyi hes only 18.

[Star Ferry]

The average VC fund today is probably over $100 million, so I'm not sure that you have the necessary scale

Sent from my SM-G9200 using Tapatalk

[Tri-Tip]

Seems like the question should have been asked before starting the fund.

[Etschell]

Originally Posted by Ronin78

Coffee is for closers only.

I made 970,000 last year what did you make?

You see this watch (president) it costs more than your car.

[yourule40]

I put a stupid title and left out a lot of information on this so I understand the responses of "didn't you think about posting this before starting it? Etc.".

For one, I consulted with 10+ other people before starting this and I've already had lawyers and done all that (I know angels/VCs in SV and China as well as a bunch of entrepreneurs). One of my best friends is a very successful $100m+ real estate investor and gave me a ton of great feedback in investing overall, but not so much in investing specifically in startups. I've

I posted here because I'm sure there's some investors here that have had experience that's possibly similar to mine (running successful company then doing the investment route in startups) and figured it wouldn't hurt to find out if they had some insight (if they are on this forum). I get it's weird to post it on a watch forum, but this isn't a Timex forum, people here are much more likely to be investors which is why I posted here. I've already gotten a ton of advice and feel very confident in what I'm doing, but it never hurts to throw out a message and see if anyone can give even more feedback.

Background: I already have a successful startup that has profited a few million along with building a bunch of successful apps with 10s of millions of downloads in the last two years. I can spot out BS because I've seen it from all sides.

With that being said, we already have a few family offices in Hong Kong and Asia that want to partner and invest in startups we're investing in, so the fund itself is only around $3m right now but we'll probably have access to $30m or more in the next month or so.

Also, we're going to invest mostly in companies in developing countries like India or places in eastern Europe. My partner going in this with me invested in a travel startup (I can't namedrop on the forum I think) and put in $10k 4 years ago, and now the company is valued at $200m and his stock is worth $2m. He invested in 4 others then too, but 3 out of the 5 failed. The money goes way farther there for what you pay, but the returns can be just as big.

We're going to invest in early-stage startups, mostly because I already have an existing software team that we will integrate with the startups so we know the products will be built properly. Since our team has already built a bunch of viral apps we'll also know what kind of advice to give to the startups we're investing in.

[MonBK]

Originally Posted by Etschell

I made 970,000 last year what did you make?

You see this watch (president) it costs more than your car.

Seriously?

[Old Expat Beast]

Originally Posted by MonBK

Seriously?

No, it's a movie quote.

[MonBK]

Originally Posted by Old Expat Beast

No, it's a movie quote.

[yourule40]

Originally Posted by MonBK

Seriously?

When I first read it I was like "seriously?" as well, then I remembered it from the movie and I started laughing.

[MonBK]

Originally Posted by yourule40

When I first read it I was like "seriously?" as well, then I remembered it from the movie and I started laughing.

Good thing you have a memory (unlike me).

[Etschell]

Originally Posted by MonBK

Good thing you have a memory (unlike me).

I'm Alec baldwin!!!! Arghhhh