Rami Beracha: “Before separating the money to invest, it is necessary to delve into the world of startups, which is a universe apart”.
One of the tips is to invest together with groups, since it is thus possible to share the assessment and learn from the more experienced ones. Check out startup investment tips by Rami Beracha from Sosa:
- Have an investment thesis
To invest, you must have focus. There are a lot of startups and ideas that look promising, and if you do not have a clear path, an investment thesis, you can fall into several pitfalls. An investment thesis helps the investor focusing on some prerequisites and goals he intends to achieve.
- Know what to look for in a startup
One mistake that investors must flee is to be impressed with an eloquent pitch. When evaluating a startup, you need to be technical and know exactly what makes it a good investment.
- Do not be rushed
Found a startup that looks perfect for investing? Do not rush. Take time to analyze the business, if possible (in the case of angel investment) talk more than once with the entrepreneurs, study potential competitors, clients, etc.
- Offer more than money
Smart Money is the term that defines investment accompanied by knowledge – in management and business, contacts, experience. The investor does not necessarily need to have experience in management or carry the experience of a former CEO. On the contrary: he can be a specialist in contractual law and fill an empty gap in that startup.
- Diversify your risk
As already mentioned, investing in a startup is risky. The risk depends on the type of company. At the same time, to be more likely to achieve a positive return, experts recommend having a varied portfolio. That means betting on different startups, from different markets.
About the author:
Rami Beracha is one of the most experienced investor in Israel so you can count on him when he help you with his great tips.
For more information and quotes from Rami you can visit his Wikiquote page: https://en.wikiquote.org/wiki/Rami_Beracha