Building a diverse startup portfolio

[Republic Weekly] Republic Insider December 02, 2020 Ending soon: [Dollaride]( and [Brass Clothing]( Building a diverse startup portfolio When you invest early in startups, figuring out which ones will succeed can be tricky. Even professional venture capitalists (VCs) often miss amazing deals and invest in unsuccessful ventures. For example, VC Jeremy Levine famously [passed on investing in Facebook in 2004]( telling co-founder Eduardo Saverin, “Kid, haven’t you heard of Friendster? Move on. It’s over!” Ouch, that one had to hurt... But venture capitalists have to be very selective in the deals they invest in, that’s their job. In fact, the average partner at a VC firm only invests in [1-2 deals per year]( so great opportunities will inevitably slip through the cracks. However, as individual startup investors, we don’t have the same limitations most VCs do. We can invest small amounts of money in a very large number of deals, which may increase our chances of hitting a big winner. [Research]( by AngelList supports the idea of investing in a large number of deals. Here’s an excerpt from their research, which examined the results of thousands of startup deals. “Conventional investing wisdom tells us that VCs should pass on most deals they see. But our research indicates otherwise: At the seed stage, investors would increase their expected return by broadly indexing into every credible deal. That’s one of the results we found when we analyzed the thousands of deals syndicated by AngelList over the past seven years to test assumptions about the nature of venture capital returns. We’re presenting these findings in a first-of-its-kind report out today,[ Startup Growth and Venture Returns]( Easy diversification with Republic’s Autopilot Republic makes building a large startup portfolio simple with [Autopilot](. Autopilot lets you automatically invest as little as $20 in every deal that meets the following objective criteria. Only startups that: - Have raised at least $150K - Must have over 100 investors - Must have reached at least 2x their minimum fundraising goal Autopilot is free to use, customizable, and you can opt out of any deals you don’t like. If you invest $20 per deal, a year from now you could have a portfolio of 100 startups! Autopilot does not select deals that have priced securities or special requirements to participate. Think of Autopilot as similar to investing in a broad index of stocks, like the S&P 500, instead of trying to pick individual winners. Autopilot gives investors broad exposure to companies that raise money on Republic, and while it won’t eliminate the high risk nature of startup investing, diversification is a great mitigant. [Learn more about Autopilot here](. It only takes a few minutes to set up! [Check out Autopilot]( --------------------------------------------------------------- Launched this week [687 1603694983]( A platform for everything beer [View TapRm]( --------------------------------------------------------------- Startups closing soon [Dollaride] Dollaride is about to close! $374,346 raised · $100 min. investment Transforming urban transit [View Dollaride]( [Brass Clothing] Brass Clothing is about to close! $62,800 raised · $150 min. investment A womenswear brand transforming ecommerce through community and connection [View Brass Clothing]( --------------------------------------------------------------- Startup updates [PuffCuff]( [PuffCuff: Black Women's Entrepreneurial Leadership Program @ Babson]( [Ratio]( [Ratio: Some milestones...]( [Tapa]( [Tapa: REMINDER: Join Tapa Dec. 2 - Learn What We are Doing to Help Schools, Restaurants, Places of Worship and Businesses to Reopen]( [Bloomi]( [Bloomi: Bloomi featured in Cosmopolitan (again)]( [AKUA]( [AKUA: AKUA's Kelp Burger & Republic Campaign covered in Fast Company! 🎉]( [Janover Ventures]( [Janover Ventures: A sneak peak into our software.]( [Plant an App]( [Plant an App: Sales, Growth and Low-Code'n'Roll]( [Stojo]( [Stojo: $15M in Lifetime Revenue + Neil Patel Announces Stojo as a Featured Deal!]( [Zephyr Aerospace]( [Zephyr Aerospace: BIG News Coming this Thursday]( [Edible Garden]( [Edible Garden: Company Update]( [Audios]( [Audios: Week 7 Update: Audios Endorsed by DJ El Cumacho]( --------------------------------------------------------------- Recommended reads [Caroline Cotto and Claire Schlemme, Renewal Mill]( [Caroline Cotto and Claire Schlemme, Renewal Mill]( Superheroes · Dec 2, 2020 [How did you first get interested in food waste? Claire: I co-founded Boston’s first organic juice company, Mother Juice, with the aim t...]( [Investing wisdom from top VCs and angel investors]( [Investing wisdom from top VCs and angel investors]( Investor education · Nov 30, 2020 [We've compiled wisdom from some of the world's best startup investors, including Naval Ravikant, Fred Wilson, and Jenny Lee.]( --------------------------------------------------------------- Events [Industry Series: How to Invest in Video Games]( [Industry Series: How to Invest in Video Games]( December 15, 2020 3:00pm–3:45pm EST [According to Newzoo, the global video gaming industry is estimated to be worth $159.3 Billion in revenue in 2020, a sizable increase vs. 2019. Have you considered investing in ...]( [RSVP]( [View details]( [SheWorx Virtual Roundtable: Inside the Minds of Angel Investors]( [SheWorx Virtual Roundtable: Inside the Minds of Angel Investors]( December 10, 2020 3:00pm–3:45pm EST [Join us for an interactive discussion with two seasoned angel investors, Sapna Shah and Seble Tareke-Williams, who will share their perspectives on all things angel investing. ...]( [RSVP]( [View details]( [View all events]( Like this newsletter? Forward it to a friend. --------------------------------------------------------------- [Republic]( On Republic anyone can invest in [highly vetted]( early-stage startups Investments can result in total loss and may be impossible to resell. [Learn more »]( Republic · 335 Madison Ave · New York, NY 10017 [Email preferences]( — [Unsubscribe from Republic Insider emails]( 🙋 Republic is growing. 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