Enter Markets At Zero

Ron Conway shares his perspective on how he became successful in angel investing by identifying and entering the internet market when it was brand new, allowing him to grow into an expert alongside the market's growth. He maintains this strategy has been his best career decision.

Key Points:

• Market Entry Strategy:

  • Enter markets at "zero" when there are no existing experts
  • Grow alongside the market to become the expert over 4-5 years
  • Maintain long-term commitment (still "all in" on internet in 2025)

• Investment Approach:

  • Started with small checks ($10-20K)
  • Evolved to larger investments ($25K to $250K per deal)
  • Uses "spray and pray" methodology - investing in many companies
  • Makes investment decisions in 3-5 minutes

• Success Principles:

  • Focus on founders over ideas or markets
  • Build reputation through consistent benevolent behavior
  • Help founders regardless of investment potential
  • Let money be a byproduct of helping founders

• The "Ron Conway Principle" (as noted by Paul Graham):

  • Never behave badly towards founders
  • Act in founders' best interests even without potential gain
  • Build reputation as consistently benevolent investor
  • Use reputation to get invited into good deals

• Location Impact:

  • Proximity to action (SF/Silicon Valley) creates serendipitous opportunities
  • Being physically present leads to valuable random encounters
  • More money-making opportunities arise from being in the hub
  • Trade-off between lifestyle and access to opportunities

• Key Takeaways:

  • Proximity is power - being physically present matters
  • Reputation building is more important than portfolio building
  • Simple, quick decision-making based on founder assessment outperforms complex analysis