Wake me up when September Ends

  • It’s my job as an angel investor to invest in pre/seed startups that will raise more money. Yes, I know companies should be profitable and sustainable but unfortunately, we don't have the luxury to wait around for that. Ironically it does take generally does take 5yrs+, now closer to 10yrs for an exit/liquidity but with some (or a lot of) venture capital, hopefully, the outcome is significantly bigger
  • Towards the beginning of the year, it became unclear to me what my friends at the Series A, etc were looking for. Pre/seed investors are like scouts at the top of the funnel and hopefully one of our value adds is sharing our startups with potential next-round investors (we make so many intros!). But with public markets way down, growth stage funding basically frozen, multiples compressed, the whole system went into shock.
  • The doom and gloom definitely hasn’t help as it’s a little bit like a self-fulling prophecy. But it’s true sadly — some beloved and revered startups are laying off and taking down rounds, which kind of scares people from investing in that industry (depending on metrics if expanded too fast, no rev or smaller market etc). You can check out layoffs.fyi
  • I’ve been pretty good at “picking” so far with 81% of my investments raising additional capital after I invested. So when I lost the clarity in my network through all the signals from my venture friends, news and the markets, I flipped the switch and went into support mode. Our early stage (and even later stage) founders need more help than ever.

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Trace Cohen

Trace Cohen

2K Followers

New York Venture Partners (NYVP.com) — pre-seed/seed in 40+ startups.