The Value of Getting Reps

And why you should see as many companies as you can early on

Yesterday, we welcomed our newest cohort of VITALIZE Angels and one thing stood out to me:

The value of getting reps.

I’ve mentioned previously in this newsletter how you should start angel investing as soon as you can.

The reason for doing so is obvious - you get more reps at evaluating companies.

Those reps allow you to compare founders, traction, products, and markets, and help you form your own investment thesis.

Over time, as companies grow, you’re able to see if you were actually right or not.

That can be one of the most painful parts - you don’t know if you’re a good investor for years.

But by seeing lots of companies, you can at least start to form an idea of what they look like compared to each other.

For example, let’s say a company has $15k of monthly recurring revenue (MRR) and you’re thinking, “That’s great!”

Is it?

How would you know?

What if every other company at their stage had $100k MRR by that point?

Doesn’t look so great then.

Of course, comparing one company to others you evaluated previously is just one aspect of diligence and one benefit of seeing lots of companies.

Another?

Knowing what questions to ask.

Because our angel community has a mix of newer and more experienced investors, they inevitably ask a lot of different questions when founders pitch the group.

Over time, through this process of getting reps, you figure out what to ask, what to look for, and what to question.

But the only way to see the benefits?

By getting started.

That’s all, folks!

Thanks for reading today 😊 

What topics would you like us to cover next?

Reply to this email or ping me on Twitter to let me know.

Take care,

Justin