Investor & Startup News from Dealum

​ Like in countless other industries, the Covid pandemic forced startup accelerators to digitalize their processes. Being the breeding ground of innovation themselves, it’s only natural that they’re at the forefront of transformation. From the selection process to mentoring, the accelerator landscape is changing fast. Digitalizing improves efficiency, enables remote participation, gives wider access to resources, and opens doors for startups of all backgrounds and geographical locations. On the other hand, maintaining quality and avoiding hidden biases or other unintended consequences is more crucial than ever. If done right, digitalizing and automation can be a driver of efficiency, innovation, inclusivity, and impact. But how to do it right? Let’s take a look. In this article, we cover the key areas to automate in startup accelerators, the most common pitfalls to avoid, and best practices to hit the ground running. What is a startup accelerator? A startup accelerator is a mentor-based program that...

​ For decades, the startup community has raced towards bigger and bigger. Everyone wanted to become the next unicorn. And why stop there – next up are the decacorn ($10 billion), centicorn ($100 billion), and superunicorn ($1 trillion). But is bigger always better? Or stronger? “We don’t think so,” say more and more people who choose not to participate in the race. What’s up with the new self-sufficiency trend in the startup world? Who are the ‘camel/bee’ startups? Can you even call yourself a startup if you don’t want to grow as fast as (in)humanly possible? Or are you just the silent quitter of the startup world? Keep reading to find out. Financial freedom: self-sufficiency of bootstrapped startups After the 2022-2023 venture capital crash, countless startups are facing down-rounds, valuation crunches, and agitated investors. It’s a better time than ever to be bootstrapping. As we know, bootstrapping founders use their personal resources to finance their startups, retaining complete control over their...

​ Whilst it’s becoming more widely recognized that the world is already in the midst of a climate crisis, there is also a growing recognition among investors that sustainability is not only good for the environment but also critical for long-term financial success. Companies that prioritize sustainability are often more efficient in their use of resources and may be better equipped to adapt to a changing regulatory landscape. Also, consumers are increasingly demanding sustainable products and services. By investing in these companies, you can tap into this growing market and potentially see higher returns on your investment. But it can be hard to tell the difference between a truly sustainable company and one that's just using greenwashing tactics, either intentionally or inadvertently. With this in mind, the European Commission recently unveiled a new set of rules for the consumer market that will require companies to back up their green claims with credible scientific evidence. In this guide, we'll...

​ Angel groups form the bedrock of the investment ecosystem. The success of these groups depends largely on the connections they make with other groups and investors. The Angel Capital Association (ACA), in partnership with Dealum, has published an insightful interview with Jeffrey Lang from Desert Angels, one of the country's leading angel groups. If you're an investor looking to connect with fellow angels or an angel group manager searching for a blueprint for navigating the platform selection process, this interview is a must-read. Don't miss this rare opportunity to learn from one of the industry's successful angel groups! Jeffrey Lang discusses the importance of angel group collaboration, sharing valuable insights for not only angel groups but the entire investment ecosystem. Jeffrey Lang is a trailblazer in the angel group connectivity space, and his investment story and process of selecting a platform for angel collaboration are full of relevant takeaways for investors and angel group operators...

​ There seems to be an unprecedented wave of layoffs ravaging the tech landscape. But are things really as bad as they seem? While each tech layoff can certainly be a disaster on a personal level, it doesn’t necessarily signal trouble on a big scale. Let’s take a cold hard look at if and how much trouble we are really in. To get a full picture, we have to start from the beginning. Or from somewhere in the middle. So let’s go back to — you’ve guessed it — the coronavirus. Events leading up to the tech layoffs In 2020, the pandemic happened. Surprisingly, this turned out to be a blessing in disguise for the tech sector. Social distancing and remote work put digitalization on fast forward. Many companies made big bets on how the coronavirus will change the world.In late 2020 and 2021, the tech sector was doing exceptionally well and saw the biggest annual revenue increases ever. Consequently, hiring was through the roof. Since the pandemic, the tech sector had added more office jobs than any other industry....

​ When joining Dealum, business angel groups face a choice — to use our customer success team’s expertise for onboarding support or do it on their own. Let’s take a closer look at self-onboarding, what it means, and what are the presumptions to do it successfully. First and foremost — similarly to all goals that require learning something new, the key element is self-discipline. If you are the main person responsible for the onboarding process and feel that persistence is your strength, you are up to a good start. Onboarding to Dealum comes with a bit of a learning curve, as does any new system with many functionalities and opportunities. The learning is mostly about setting up the group’s deal room in a way that makes sense to the group members and it brings along great responsibility. Doing it well means taking the time to learn what is possible, mapping your processes and thinking through what you want to achieve which in the end makes life much easier for everyone in the group. On the opposite side of...

​ There is no "set it and forget it" strategy in angel investing – or at least it might not be the best strategy to follow. The best way investors can help their investments succeed is by taking an active, hands-on approach and getting in the trenches with the startups they invest in. In this article, we'll explore why being an "actively involved" angel investor is rewarding for both investors and startups. If you’re ready to become a startup game-changer – or are looking to leverage the full potential of your angel investors – read on! Angel investing is not for the faint of heart. Compared to “traditional” investing, there is more risk, higher rewards, and longer commitment involved. And speaking of involved, investors are often more involved in the companies they invest in – by sharing their expertise, network, or other types of value. This also means that investors can significantly impact the startup’s success by shaping the direction or values of the company or giving the right boost at the right...

Diversification is common sense for any type of investor. There’s even a saying that it’s better to be roughly right than exactly wrong. And knowing that 90% of startups fail, betting on one horse to become a unicorn is a gamble you don’t want to take. Diversifying your angel investments across multiple startups is fundamentally risk management. Some startups will fail sooner or later; when one flops, others may succeed and balance the losses. Let’s look at different diversification strategies and how to strike the right balance between a diverse and a watered-down portfolio. Understanding diversification: finding the right balance Diversification is not just about investing in more than one startup. You can invest in hundreds of companies but if all those companies are similar, you still don’t have a diverse portfolio. So what exactly is considered diversification, and how to strike the right balance? Diversification in its essence is about not putting all your eggs in one basket – this means spreading...

We have already covered the red flags of angel investing, but when considering an investment, it’s equally important to notice the characteristics of the company that make it stand out from the competition. From a strong founding team to capital efficiency, we’ve listed the core factors to predict future success. Of course, investing in startups is always a risk, but you can’t build a strong company on a weak foundation. The more boxes you can check for a startup, the higher the probability of a successful investment. What should you pay attention to? 1. Strong founding team The founding team is the backbone of any startup. A strong founding team has the right mix of experience, skills, and passion to help the startup succeed. Here’s what to look for when evaluating a startup’s founding team: Industry experience: Look for founders who have at least 3 years of relevant experience to make sure they understand the industry and the market. For example, for building a fintech startup, it’s good to have...

Founding your own startup is an exciting time, a time full of hopes, dreams, and promises. Who has time for mundane legal technicalities when you’re building the future, right? Wrong. Although startups are supposed to move fast and break things, being sloppy with your legal documents can break the company in the long run. And often it’s not something you can fix on the go. Mistakes you’ve made in the very beginning can come and haunt you, your company, AND your investors for years or decades to come. We can’t stress enough how important it is to get your legal ducks in a row before you start talking to investors. Where laws and regulations are concerned, failing to plan is planning to fail. It’s always easier (and cheaper) to prevent legal problems than to solve them. In this article, we'll walk you through the key legal basics of starting a startup off on the right foot. Pick the right type of legal entityRegister your businessProtect your intellectual propertyCreate legal documentationUnderstand...