Investor & Startup News from Dealum

​ 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...

The tech industry has a diversity problem. Despite efforts to increase inclusivity, minority founders are still heavily underrepresented in the startup world. So much so that women-led startups receive less than 3% of VC funding, Latinx only 2% and Black founders a mere 1%. But why should you care? Besides basic human decency. Because diversity is not only a social issue but also a smart investment strategy. The untapped potential of minority founder startups Throughout history, white men have held power, which has led to seeing their views and experiences as the norm. When the white Western male is the “standard” for startup founders, we’re missing out on the perspectives, experiences, and needs of people who are not white, male, or Western. Why is this a problem? Firstly, this perspective reinforces systemic inequalities and perpetuates bias and discrimination. And subsequently, it limits innovation and progress by only valuing a narrow set of perspectives and ideas. Minority founders' unique perspectives...

The COVID-19 pandemic has been a game-changer for the startup ecosystem in many ways. Some businesses have risen, others have fallen, and some have risen AND fallen. The pandemic has affected everything from funding to industry trends to day-to-day operations. In this blog post, we’ll explore the obvious and less obvious ways COVID-19 affected the startup ecosystem. 1. Startup funding went down, and up, and down again Initially, the pandemic caused a slowdown in the global economy and investment activity. Venture capital firms and angel investors were more cautious, reducing the amount of money they invested in startups. After the initial shock, the startup ecosystem adopted the “Never let a good crisis go to waste” mindset. Countless tech companies seized the opportunity to cater to the new niches and demands of the ‘new normal’. This quickly snowballed into a full boom with tech valuations soaring and a VC gravy train going full speed ahead. More than $1 trillion in investor capital was handed out in two...

​ Dealum, the leading deal flow and collaboration platform for angel groups headquartered in Tartu, Estonia, and Keiretsu Forum, a global investment community of accredited private equity investors, venture capitalists, and corporate/institutional investors, announced their partnership aimed at enhancing the efficiency of deal flow and collaboration in the angel investing ecosystem. The partnership combines Dealum's expertise in providing tools for deal sharing and syndication, pipeline and funnel management, and investor communication with Keiretsu Forum's global network of investors and diverse investment opportunities. This collaboration will enable angel investors in Keiretsu Forum’s global network to access a larger pool of investment opportunities while streamlining the deal flow process. "Our extensive network of angel investors in 33 North American chapters, along with our 40+ angel group syndication partners, rely heavily on secure online sharing of investment and due diligence data," reports...