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Episode Info: od performance over a long period. Handy model to assess start-ups TIEM: Trust - Idea - Execution - Money Anytime Andrew looks at investing in a start-up situation, he applies this formula. Trust: The first question he asks is: Do I trust this person? Trust is only built over time, it’s very hard to walk into a new situation and say “I trust this person” If there’s no trust from the start … STOP. Idea: Is it a good idea? If it is not … STOP. Execution: Can this person or team execute on this idea? There’s a huge difference between the type of person who can come up with an idea and the type of person who can execute on it.  Part of Jen’s story was that her team started missing deadlines. They lacked the ability to execute the plan. Money: If you don’t have money, you’re not going to get there. So you’ve got to have the runway that money provides. In Suresh’s case “I think this one (company) really kind of broke down at the point of execution.” Andrew Stotz Financial professionals can be overconfident about own investments When talking to clients and advising clients, usually professionals put in a lot of care into the research done into the suitability of a particular investment on behalf of their client. But sometimes they throw that out the window when they’re looking at their own ventures. Things can get overlooked.     Actionable advice Search carefully into the character of founders or entrepreneurs Nowadays, Suresh spends a lot of time and effort in getting background and character checks done on founders, through multiple references. This includes going to consumers of their past products or services. The character of the founder is key in terms of his opportunity cost, even behavior such as reputation for doing the right thing. Be even more wary of sole founders Suresh is even more cautious when he is looking to invest in a business with a sole founder. Of the 24 angel investments he has participated in, three have not done well; one has gone to zero, two will probably go to zero in the next few quarters; all of that trio are sole-founder-led businesses. Suresh has found the common theme is that they tend to completely blame everything else except themselves.     No. 1 goal for next the 12 months Suresh recently joined Bangladesh fintech company SureCash, and it’s purpose is very involving for him because it’s built on financial inclusion, as it is helping the government distribute money to mothers of primary school children. Over the next 12 months, he really wants to build a great business that helps improve the lives of people and creates value for the venture’s shareholders.     Parting words Angel investing is great because it helps companies and ideas to launch, but one thing Suresh wants listeners to remember is that is it the most illiquid investment you can ever make.   “If you have college fees to pay for … (or you are) sending them to expensive private schools, don’t put that money in angel investing.” Suresh Mahadevan       You can also check out Andrew’s books   How to Start Building Your Wealth Investing in the Stock Market   My Worst Investment Ever   9 Valuation Mistakes and How to Avoid Them   Transform Your Business with Dr. Deming’s 14 Points  Connect with Suresh Mahadevan LinkedIn Twitter Connect with Andrew Stotz LinkedIn Facebook Instagram Twitter YouTube My Worst Investment Ever Podcast  .........
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