Tips for successful angel investing with Ben Leblois

At BADideas.fund we do more than invest money. Our members help our startups grow, and we learn together to become better investors.

At BADideas.fund we do more than invest money. Our members help our startups grow, and we learn together to become better investors.

For many of us, BADideas.fund is our first real angel investing. Near our first anniversary we are still learning the basics: how much to invest, how to find deals and how to decide. Thankfully, we have a few experienced investors in our community, and picking their brain has been invaluable. One of them is Ben Leblois, a 3x founder with 1 successful exit and over 35 investments.

Find a Thesis and Stay True to It

It really is that Important

Ben emphasizes the importance of having a thesis, a set of criteria that guides an investor's decisions, when it comes to angel investing. It helps maintain focus on specific areas and filter out potential investments that don't fit the strategy. Without one, it is easy to invest on impulse.

What is a Good Thesis

A good thesis should be specific, realistic, and grounded in the investor's strengths and interests. It should also be flexible enough to adapt to changes in the market and the investor's circumstances. For example, Ben's thesis is focused on backing teams with unique advantages in emerging markets.

Staying True to it

Once an investor has established their thesis, it's important to keep the discipline and stay true to it. This means turning down opportunities that don't fit the criteria and resisting the urge to chase trends. Easier said than done. It can be tempting to invest in the latest hot startup or follow the crowd, but that's not always the best approach.

Look for Teams with Unique Advantages

Why That Matters

Ben looks for teams with an advantage others cannot easily copy: deep industry knowledge, a strong network or startup experience. These advantages make it harder for competitors to replicate the startup's success.

CEE founders can hire strong teams for a fraction of what the same team costs in London, New York or Silicon Valley. For each company, look at product-market fit, market size and competitors.

What to Look for

A team should have solid domain expertise related to the problem in the space they are solving. Also, look for teams that have already achieved some early traction, even if they’ve only built a minimum viable product or have a small customer base. This helps reduce risk and provides evidence that the team is capable of executing on sound ideas. It's also crucial to assess the team's ability to handle challenges and pivot when necessary. As Ben notes, "things always go wrong in startups," and it's the team's ability to adapt that often determines their success.

Build a Network to Create Dealflow

Another important aspect of successful angel investing is getting access to high quality dealflow. New investors usually have neither the network nor the name to see good deals.

One way to solve this is joining an angel syndicate, such as BADideas.fund. BADideas.fund has 150+ founders, operators and investors from 16 countries who help startups.

Being part of an investor community provides not just access to dealflow but the collective brainpower behind it as you learn as much from your co-investors as you do from your own investments. Building relationships with other investors and entrepreneurs is key as that can lead to future investment opportunities.

Take a Long-Term View

Ben advises taking a long-term view when it comes to angel investing. This means not focusing solely on short-term gains, but rather building a track record over time. Angel investing takes years: time to build a portfolio and to see the first exit.

Be Consistent

Ben recommends investing similar amounts each time and sticking to your criteria and long-term goals.