Fire side chat: Investing like a Super Angel
Brian Cohen, Peter Jungen
Characteristics of a successful Business Angel and investing in Startups
Investing in Startups is not only a financially interesting alternative for patrons with high net worth. It is also a way of investing in future generations, creating positive change in society and being at the cutting edge of technological knowledge. However, it’s not a suitable business for those with risk aversion as only one in every ten entrepreneurial companies succeeds. Brian Cohen, Chairman of New York Angels and Peter Jungen, Chairman of Peter Jungen Holding GmbH, summarise brilliantly what in their experience are the characteristics of a successful Business Angel during the sixth edition of Foro Zagaleta on April 6th, 2018, in Marbella:
1. You need to accept error as the first scenario. “Failure is also fun,” says Cohen. Between 70% and 80% of Startups do not succeed, in other words, you win, or you learn, and there’s a lot to learn at first.
2. “It’s not just about money, it’s also about successful entrepreneurs transferring knowledge to new generations,” stated Jungen. “It’s not that someone has a good idea”, he continued: “That’s the easy part. The hard part is knowing how to execute it well”.
3. Know how to identify projects that are really worthwhile. Companies that manage to succeed only start to show positive returns after six to ten years. You must, therefore, diversify the Startups you decide to inject financing into.