Identity Before Capital

Shaan Puri shares his journey and realization that waiting to have capital shouldn't stop someone from becoming an angel investor. He emphasizes that thinking of yourself as an investor from day one is crucial, and there are creative ways to access capital and build a portfolio.

• Missed Early Opportunities:

  • Passed on investing in successful companies like Calm (now worth billions)
  • Could have turned $250K into $5M by investing in friend's companies
  • Lost opportunities due to not identifying as an investor

• Portfolio Strategy Requirements:

  • Need about 30 companies for a proper angel investing portfolio
  • Typical distribution in 10 companies:
    • 4-5 companies go to zero
    • 2-3 companies return 1-3x
    • 1-2 companies do 10x+
    • Ideal scenario: one company does 1000x+ or 10000x+

• Creative Capital Access:

  • Found alternative to needing $750K ($25K × 30 companies)
  • Partnered with existing investor as a scout
  • Structured deal: 10% carry with zero capital investment
  • Built portfolio through other people's capital

• Key Lessons:

  • Don't wait until you're rich to start investing
  • Being resourceful and persuasive can help access capital
  • Start building a portfolio of logos/investments early
  • Aim for 5-10 investments per year as a goal

• Strategic Approach:

  • Think of yourself as an investor from day one
  • Many people with capital want deal flow
  • Can get carry without putting up personal capital
  • Build reputation through initial investments to access better deals