Tremendous

An angel investor's take on life and business

  • Yes, You Can Angel Invest $5k Direct 

    You don’t need to write a $50k or $100k check to invest directly in a startup. I’ve written tons of $5k and $10k checks. Here’s how it works…

    Starting out, I did all syndicate investments, paying 20% carry each time. Now, most of my investments are direct.

    When I made my first direct investment, I was intimidated. It sounded mysterious and difficult. 

    But it’s not.

    It all starts with finding the right startup and getting a spot in the round. 

    How I Get a Spot, Even as a Little Guy

    I’m upfront with founders about check size. If they only want huge checks, I’m not the investor for them.

    When I meet a startup I love, I help them as much as I can. I make a bunch of intros to VC’s, helping them line up meetings.

    I also tell the founder exactly why I love their company.

    Take Nick at Verustruct. His 3D printing robot will build the homes to solve the housing crisis. That’s incredibly exciting!

    The founder sees I can help him. He also sees that I care about the mission. 

    Helpful investors who care about the mission — that’s what founders want. So although my checks aren’t huge, I rarely miss a deal.

    How The Investment Works

    On the settlement date, the founder sends me the paperwork and wiring information. I e-sign the paperwork and wire the money.

    It’s very simple and takes maybe half an hour. I confirm they got the money, in case the bank messes up.

    But What About Legal Fees?

    Early on, I heard you couldn’t invest less than $50k directly because of legal fees. This isn’t true.

    At pre-seed and seed, everyone raises on SAFEs. All documents are standard. 

    I run the docs through an LLM to be sure I’m signing a standard SAFE. 

    I haven’t incurred any legal costs doing deals. Neither have other angels I know. 

    Wrap-Up

    Small investors absolutely can invest directly. 

    It’s not difficult. Many great founders will be happy to have you. 

    I still invest through syndicates too, paying 20% carry for the privilege. I want the best deal, wherever it comes from.

    But I’m no longer afraid to go direct. And if I save that 20%, even better!

    More on tech: 

    Meet My Latest Investment: Verustruct

    Investors: Get Your Wires In ASAP!

    The Best Way to Share Your Deck with Investors

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Investors: Get Your Wires In ASAP!

    8:32am: Wiring info received. 10:00am: Wire sent. I wire promptly to make your life easier.

    Investors, don’t make founders chase you!  

    The Problem: Wasted Founder Time

    I’ve watched founders chase investors for months. These are investors who committed to the company!

    This wastes precious founder time.

    They’re supposed to be building the next billion dollar company, not e-mailing an investor for the 5th time.

    The Solution: Be Faster Than Other Investors

    I saw a chance to differentiate from other investors here. 

    I wire as quickly as possible once I receive the documents from the founder. This usually occurs on the settlement date, when all investors are supposed to send their wires.

    If founders have an easy time dealing with me, more great founders will come my way. 

    The Risks of Delay

    When you drag your feet, you make more work for the founder. You risk exclusion from the round. And you hurt your reputation.

    If you don’t want to invest in a startup, don’t!  But if you do commit, follow through in a timely fashion. 

    Wrap-Up

    The longer I do this, the more I realize what I really am: a customer service agent. 

    The startups are my customers. I have to give them good service.

    If I don’t, they’ll go elsewhere. 

    Give founders good service, and you might be surprised the deals that come your way!

    More on tech: 

    The Best Way to Share Your Deck with Investors

    Meet My Latest Investment: Memelord

    Why Short Decks Raise Millions

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • The Best Way to Share Your Deck with Investors

    You’re sending your deck to an investor. Millions of dollars are on the line. Here’s how to do it right…

    An Oldie But a Goodie

    The best way to send your deck is the simplest: a PDF attachment.

    One click, and the investor is in your deck. Once he’s there, he’ll see your amazing traction and write you a check! 

    If he wants to forward your deck to other investors, a PDF makes that easy. This can result in a cascade of money.

    The Dangers of Docsend

    A Docsend link works, but it’s not as easy to save and forward. And why should you pay Dropbox and manage another product?

    If you insist on Docsend, never require an e-mail, password, or one of those awful “magic links.” They encourage the investor to say, “Who cares?” and move on to the next.

    You don’t want to make an investor’s job harder. You want to make it easy for them to give you money!

    But What If My Competitors See It?

    Some founders insist on e-mails and passwords because they’re afraid their competitors will see their deck. This isn’t worth worrying about, especially for an early stage company. 

    Your biggest problem will be getting anyone to care! What’s most important is to get the right people involved, ASAP.

    Wrap-Up

    We all love buying stuff on Amazon. One click checkout makes it easy.

    You want one click checkout with your deck. 

    You’re competing with thousands of startups to get funded. 

    Give yourself every advantage you can. Make your deck easy to work with. 

    Make it a PDF.

    More on tech: 

    Meet My Latest Investment: Memelord

    Why Short Decks Raise Millions

    Beware the Hot Deal

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • What the Heck Is Going on in France?

    France just lost its 5th prime minister in three years. What the heck is going on over there? Today, I decided to find out…

    Another Government Falls

    Prime Minister Sébastien Lecornu resigned today after several parties threatened a no confidence vote. That vote would’ve required Lecornu to resign.

    The major parties can’t agree on a budget. The left wants more generous pensions and a wealth tax. The center and right support less spending and lower taxes. 

    A Nation Drowning in Debt

    Behind all this political fighting is a country that’s deeply in debt. 

    French government spending accounts for 57% of GDP. Its budget deficit and debt to GDP ratios are among the highest in the EU.

    After Lecornu’s resignation, French stocks are down and bond yields are up. Markets are telling us that France looks like a shaky bet.  

    How long can the government spend a majority of the country’s output?

    A Deteriorating Economy

    France’s economy is struggling, making it hard to pay all that debt. 

    Its unemployment rate is over 7%. Youth unemployment is 18%. 

    Those rates are much higher than in America. Our overall and youth unemployment rates are 4.3% and 10.5% respectively. 

    France isn’t growing because it isn’t innovating.

    Of the top companies in the world by market cap, France doesn’t appear until #37, with LVMH. And in AI, France is lagging. Mistral, its only significant AI company, is way behind OpenAI, Anthropic and xAI. 

    Is America Next?

    In America too, debt is leading to political upheaval. Right now, the government is shut down as Congress fights over health spending.

    We don’t spend as much as France, but spending still hit 40% of GDP last year. Our debt to GDP ratio is even higher than that of France.

    But America has huge advantages that make our debt more manageable.

    It’s easier for our government to cut spending. The two party system means we don’t need to form coalition governments. We also don’t have no confidence votes.

    Most importantly, we innovate. Innovation can help us grow out of our debt.

    19 out of the top 25 largest companies in the world are American. So are almost all the top AI labs, along with SpaceX and Neuralink.

    We need to reduce our spending, no question. But a strong economy makes handling this debt much easier. 

    Wrap-Up

    France is looking at a bleak future. It’s deeply in debt and isn’t innovating enough to grow its way out.

    There’s only one way to fix France: cut spending. Stop letting the government suck up the entire economy. 

    If France can’t do that, it will continue to cycle through governments. Nothing will really change.

    And every year, it will get a little poorer. 

    P.S. Thanks for bearing with me last week as I was on vacation. New Orleans was wonderful! Glad to be back. 

    More on politics:

    Why the EU Breaking Encryption Is a Threat to the World

    Why Businesses Should Leave NYC Now

    The Coming Robot War with China

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Meet My Latest Investment: Memelord

    Something weird happened to me recently: I had fun using SaaS. So of course, I invested in the company.

    Memelord finds trending memes from all over the internet. Then, it helps you make hilarious versions of them to promote your business.

    I always try to use products before I invest. But with Memelord, I found myself coming back over and over, long after I’d tested it sufficiently.

    This thing is fun to use!

    Founder Jason Levin plans to build the Palantir for Memes.

    Palantir sends Forward Deployed Engineers to help customers configure the software and get the most out of it. Jason offers consulting to customers to help them make awesome memes.

    Call it Forward Deployed Memelords.

    Jason’s approach hit home. I used to work for an Electronic Medical Records company called Epic. Like Palantir, they send staff to customer sites.

    I was one of those people. I learned that software plus services can be an incredible combination.

    But in the end, the reason I invested in Memelord isn’t really about any of this. It’s about Jason.

    The man defines “scrappy.” His energy is boundless, his understanding of marketing instinctive.

    He’s just the man for the job. And although I may be the smallest investor he has, I’m delighted to be in business with him.

    Check out Memelord and make some awesome memes!

    The next blog will be on Monday, October 6. I’m headed to New Orleans next week on vacation! 🥳

    More on tech:

    Meet My Latest Investment: Verustruct

    Why Short Decks Raise Millions

    Beware the Hot Deal

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Meet My Latest Investment: Verustruct

    My number one lesson from 4 years angel investing: it’s all about the founder. The founder of my latest investment is one of the best I’ve ever met.

    Nick Callegari is the founder of Verustruct, the company that is going to solve the housing crisis.

    Verustruct is developing a 3D printer that makes houses. The printer will build cement walls and embed the mechanical, electrical and plumbing along with them.

    This will let us build faster and cheaper than ever before.

    Before Verustruct, Nick led a team of engineers at SpaceX. He developed the extravehicular activity structure for the Polaris Dawn Crew Dragon mission.

    This structure enabled the first commercial spacewalk. If Nick’s structure had failed, those astronauts would’ve died.

    Here’s my thinking: if Nick can pull that off, 3D printing a house should be easy!

    It’s no secret that housing in America today is obscenely expensive. The median house price is $447,000. And if you want a newly built house, the average is $515,000.

    Add in 7 percent mortgage rates, and who the heck can afford this?

    If Verustruct can print houses en masse, quickly and cheaply with less skilled labor, those prices will fall off a cliff. 

    Finally, the average person will be able to afford a decent home.

    I’m incredibly excited about what Nick is doing at Verustruct. Some day, I hope to live in one of their houses myself!

    More on tech:

    Your Next House Will Be Built By Robots

    Why Short Decks Raise Millions

    The Question No Founder Asks

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Beware the Hot Deal

    The hottest startup is a great place to lose your money…

    • Theranos
    • FTX
    • WeWork
    • Clubhouse

    Investors threw cash at these companies. 

    Theranos and FTX turned out to be frauds. WeWork and Clubhouse struggled to make a viable business. 

    Either way, the investors got torched.

    When Investors Get Sloppy

    When a startup is hot, investors don’t do diligence. This lets bad investments slip through.

    Normally, a VC talks to customers to see if the product is as good as it looks. They also review bank statements, revenue and burn.

    In a hot deal, investors throw that diligence checklist out the window. 

    In the case of Theranos, investors put in millions without ever seeing the device. Even when I invest $10,000, I want to see a prototype!

    Are We About to Fund the Next FTX?

    Markets are as hot as in 2021. I’m seeing seed rounds at $75 million.

    I can feel it all happening again.

    In a hot market, another FTX or Theranos can slip through. It feels like everyone’s making money. You don’t want to be left behind, do you?

    So you skip your diligence, just this once. 

    All the top investors are in this company. It must be a winner!

    How I Approach Hot Deals

    I do the same diligence for every company. 

    I work quickly. In fact, I can usually get a founder a decision within 24 hours.

    But I’m definitely looking into product, revenue, and burn. I’m also going to research the team.

    If I skip those steps and the company implodes, I’ll be kicking myself. If I did my research and the company dies, at least I tried my best. 

    Wrap-Up

    Everyone wants to be in the hottest deal. 

    We’re afraid to miss a big winner. We don’t want to seem insignificant.

    But odds are, you’re not missing anything. 

    I’m staying focused on real businesses raising at reasonable prices. If the rest of the market wants to go crazy, let it.

    More on tech: 

    How Top Startups Break the Rules

    Why Short Decks Raise Millions

    The Question No Founder Asks

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Avoiding Co-Founder Conflict, the Startup Killer

    What’s the best way to kill a startup? Run the bank account to $0? Lose customers? No.

    The best way to kill a startup is for the co-founders to start fighting. 

    I need to know how strong a team’s relationship is. So I ask every entrepreneur, “How did you meet your co-founder?”

    Here are some answers I hear…

    The Repeat Co-Founders

    “We worked together at our last startup, GiggleGizmo. It failed, but Jim was always there, shipping product.”

    I love teams that have worked together before. If they could get along at GiggleGizmo, they should be able to get along at their new startup too. 

    The Childhood Pals

    “We’ve been friends since childhood. We grew up on the same street.”

    Even better! 

    There will be some big conflicts as they build this startup. But since they have a strong relationship, I’m confident they’ll resolve them.

    The Mom and Pop Startup 

    “My co-founder is my wife, we’ve been married 10 years.”

    This is way more common than you’d think. 

    Like the longtime friends, a married couple has been through conflicts before. Since they’re still married, we know they resolved them! 

    The Fast Friends

    “We met at a co-founder speed dating event.”

    This answer worries me a little. 

    They haven’t known each other for long. Will they be able to get along for the 10+ years it takes to get to IPO? 

    I need to find out more about their relationship. How do they divide tasks? What do they do when they disagree?

    Wrap-Up

    Founders who are childhood friends aren’t a sure bet. Founders who just met aren’t guaranteed to fail.

    But a founding team that knows each other well and can resolve conflicts is a big plus.

    If you’re starting a company, consider working with someone you know well. You’re more likely to make it through the hard times.

    In the end, business is all about people.

    More on tech:

    Meet My Latest Investment: Mozi

    3 Things I Hate Seeing in a Pitch

    How Top Startups Break the Rules

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Finding the Next Unicorn on Product Hunt

    I opened Product Hunt this morning, looking for a unicorn. Here’s how I do it…

    Find What’s Exciting

    First, I look for products that excite me.

    What have I never seen before? What would I want to use? As Paul Graham said…

    “Curiosity is the best guide. Your curiosity never lies, and it knows more than you do about what’s worth paying attention to.”

    Is it a Feature or a Business?

    I’m looking for products you can build a business around. 

    Maybe I see an app to clean up my inbox. That’s useful, but can you build a business around it? 

    An inbox clean-up tool is a feature for an e-mail app. It’s hard for the clean-up tool to stand on its own. 

    The Startup Behind the Product

    Once I’ve found a product I like, I look into the startup behind it.

    I look up the company on Crunchbase and see how much money they’ve raised. I like to see $750,000 or less. That means they haven’t raised a seed round yet. 

    I also check where the startup is based. This morning, I found an awesome release, but the startup behind it is in Hong Kong. That market is too unfamiliar for me, so I passed. 

    Do Upvotes Matter?

    I don’t worry too much about whether a startup is #1 or #5 on Product Hunt’s list. But I don’t usually look below the top ten.

    Once you’re in the top ten, you’re splitting hairs. #1 isn’t necessarily better than #5.

    I pay attention to the Product Hunt ranking. But in the end, I use my own judgement.

    Meeting the Founder

    When I see a startup I like, I cold message the founder on e-mail or LinkedIn. I say something like this…

    “Hi Jim! 

    I saw your AI therapy app on Product Hunt. I loved the calming nature scenes!

    I’m an angel investor in the NYC area. I’d love to learn more!

    Francis”

    I keep the message short. I also like to be specific about why their product grabbed me. This shows the founder I’m not sending him a copy-pasted message.

    Never be afraid to cold message a founder.

    Wrap-Up

    Product Hunt is a great place to troll for deals. I see the very newest products and how our industry ranks them.

    It’s also a lot of fun! I love the creativity of all these builders, making everything from AI children’s stories to stock trading apps. 

    Somewhere in all those releases is a billion dollar company. I just have to find it.

    More on tech: 

    How Top Startups Break the Rules

    Why Short Decks Raise Millions

    How Founders Can Improve Their Pitch by Watching Game Film

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order.

  • Why Nicotine Pouches Are Unsafe

    Techbros love nicotine pouches. But these pouches are terrible for your health. Here’s why you want to avoid them…

    Nicotine pouches put you at risk of cancer, heart disease and dental problems. Nicotine is a vasoconstrictor, meaning that it narrows your blood vessels. This is very bad for your cardiovascular health. 

    I’ve heard many people say that cigarettes are dangerous but nicotine is not. This just isn’t true.

    How I Quit Nicotine

    If you love nicotine, I get it! I used to smoke cigarettes for years.

    On January 20th, 2015, I quit. It’s one of the best things I ever did in my life.

    It’s not worth the health risks. Life’s too short to be a slave to nicotine.

    I didn’t think I could quit, but it turned out to be much easier than I thought.

    Within a couple of days, I started to feel healthier, more energetic, even exhilarated.

    I quit by slowly decreasing my nicotine consumption. I went from 20 cigarettes a day to 10 the next week, then 5, then 0.

    For other people, quitting cold turkey works better. There is no right or wrong way, so long as you quit.

    Nicotine Isn’t Helping You

    I used to think nicotine gave me an edge. It didn’t.

    Nicotine withdrawal made me jittery. Then, I used nicotine to kill the jitters.

    Nicotine was creating a problem and then solving it. But when I threw the cigarettes away, the problem was gone!

    Wrap-Up

    If you’re reading this, you’re probably building something ambitious. If nicotine ruins your health, you’ll never reach your goals.

    I can’t tell anyone what to do. 

    But I want everyone to know that nicotine pouches aren’t safe. And you really can quit. 

    Whatever decision you make, I wish you the best. 

    More on health:

    How I Quit Smoking

    How I Learned to Cook

    Using Grok as My Personal Trainer

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order.