Konstantinos Korletis - A presentation on angel investing at Open Coffee Athens

Angel Investing

An experience which is yet to prove worthwhile...

Is tech right for angel investing?

• In theory, yes because tech initiatives are of high risk

• It makes sense considering the grand scheme of things

• Judging from the outcome, the angel investing experience in the US tech scene has been positive

A big ? for Greece

Is it smart to be an angel?

• In the US, for every 1,000 ideas

•27 products/services make it to the market

• 12 fail soon after • 9 linger in limbo • 6 turn out to be very successful

• Do the math… 6 %o…..

Is 6%o worth our while…

What am I looking for

1. Outstanding entrepreneurial talent2. Good management skills3. Pragmatic approach to value (sense of humbleness)4. Prior work experience in the real world5. …6. …7. …8. …9. Realistic game plan10. A reasonable monetization strategy

Most frequent encounters (pre)

• Startup teams come mostly unprepared– Get to know your audience beforehand– Be diligent, honest and well composed– Have a strategy in place

• Tendency to believe that dollars grow on trees– An idea is nothing without execution– You are greedy. Be smart about it

• You easily “give up” your idea to secure funds

Most frequent encounters (post)

• Poor managerial skills– Limited soft skills– Your allure quickly fades away– Earn the respect of others

• Don’t over-promise– Smart people will soon cut through BS– Be honest and fair– Isn’t really worth being the majority of a failure

Conclusion

• Start-ups need to get grounded

• Angels need to become stricter and add more real value

• Options for further funding rounds need to increase

• Later-stage investors need to become more active and smarter

Thank You

Support slides – not to present

Why so few angels in Greece?

• Small market (less opportunities)

• Limited wealth (limited funding)

• Unfavorable legal/judicial/tax system

• Difficult access to new ideas

• Very few venture capital initiatives

• Unrealistic expectations on value

List of VCs (active?...)• Alpha Venture• Global• Open Fund II• First Athens• Odyssey Venture Partners• PJ Tech Catalyst• Zaitech Fund• Capital Connect VP• IBG Hellenic Fund II• GIVE – TANEO Fund• AIMS – TANEO Fund• THERMI – TANEO Fund• New Mellon – TANEO Fund• TANEO – FG RES Fund

Why is this a problem?

• VC investments merely 0.04% of GDP; last before Serbia in the EU

• Traditional VCs have limited expertise in technology and innovation

• Majority of VCs exist because of TANEO and not necessarily because of investment competence