Many startup investors begin with a portfolio theory approach in which one makes a few investments across a broad range of sectors. I often hear, “My strategy is to invest in good deals.” This is easier said than done. A broad-based investing approach requires the investor to come up to speed in every sector. That’s a lot of homework for an investment in one or two deals. Some investors focus on a few key domains and become experts in those areas. By diving deep, one can understand the trends, challenges, and factors that drive company success. There’s a risk that if you have too many companies in a sector, you are at risk for major disruptions. If the sector is broad enough, you can move to new areas within the space as it matures. How to find deals in a Sector You can search Crunchbase for sector-specific reports to find deals in a sector. Pitchbook produces funded reports by sector by subscribing to their daily newsletter. To meet with startups, conferences are a great place to find personal introductions. Also, venture capital is now evolving into service models in which they fund the companies and help with operations such as sales, CFO, etc.  It’s not hard to find a list of VC firms focused on a sector. Understanding the Challenges in the Sector By focusing on a sector, one can learn the challenges in that sector and look for companies that are solving those challenges in new and unique ways. By talking with startups about how their product/service works, the investor learns the key issues in that industry sector. Identifying the Risks to Overcome Every sector comes with its risks, such as regulations.  Also, disruption from new technologies is an ever-present risk in the industry. Spending time with startups and investors in the space makes it clear where the risks come from and what one can do to mitigate them. Tracking the Trends in a Sector With the increase in newsletters, podcasts, meetups, and more, one can track the trends in a sector. Some aggregator tools, such as Feedly, let you build lists of sites and find updates as new information arises. By reviewing conference agendas for sector-specific shows, one can learn the topics that are top of mind for those in the sector. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

As an investor, I helped launch three angel networks in Texas. In the process, I setup training programs, attended conferences, and talked with many other investors. Hearing and speaking to other investors was a wonderful learning tool. One of the best resources I found was a podcast by Frank Peters. Frank was an angel investor out of the Tech Coast angels in southern California. The Frank Peters Show Frank interviewed every angel, VC, and startup in the southern California community. He later ran interviews across the US and all over the world. He ultimately recorded over 450 episodes which he posted on the web. As I drove my car I listened to many of the podcasts and heard from angel investors on how they invested, their investment thesis, and lessons they learned from the process. I recommend listening to podcasts that focus on startup funding. Podcasts are an excellent tool to learn from experts in the field. Some of my favorites are: Jason Calacanis: Angel Podcast, Patrick O’Shaughnessy: Invest like the Best and there is also my own personal podcast, Investor Connect.   Read More: How to Invest in Startups: ​Invest at an Available or Opportune Time Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

There are many parallels between the blockchain/crypto world of today and that of the Dotcom era of the 90s. I often hear comments such as “It’s 1994 and it’s deja vu- all over again”. The hype, hysteria, and ultimate bubble popping of 2001 still remain a vivid memory for many. Crypto and blockchain are on the same trajectory with all the associated hype, media mania, and startup hysteria that comes with it. The Gartner Hype curve is one way to track our progress through the inevitable cycle of launch, fall back, and then finding the way forward.   Here’s the Gartner Hype Curve for those not familiar with it. It does seem to me that blockchain is progressing more quickly through the hype curve than the Dotcom era. I guess more people know the stages and execute in a “fail fast” mode so as to move to the next phase more quickly. Also, the tools for propagating information (social media, email, other) are better so it leads to reason that we’ll make our way up the curve faster. As with all new technologies, the surrounding ecosystem needs to be built out and this will some take time. Most crypto solutions today focus on infrastructure. High-end point applications are going to be difficult to build until the foundations are in place. Enabling tools and technologies need to be put in place. These are important points to remember in evaluating ICOs on offer. In reviewing the current crop of ICOs it appears some are trying to put a man on Mars with the blockchain equivalent toolset of a 1985 PC and DOS. This is going to be tough. As an investor, you don’t want to invest in a startup for first timers launching a mission to Mars – you want the A-team going for a slam dunk on their home field. It will take some time, but that time clock seems to be moving faster than before. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more Connect with him about fundraising, business growth, and emerging technologies.

Initial Coin Offerings (ICOs) continue to attract large sums of investment dollars. With investor interest comes a volume of deals to sort through. My four rules for investing in an ICO are: The team is always the first criteria. The project needs a capable team, preferably one that has already built something successful.  Just about every startup failure I’ve invested in goes back to the team not being up to the task. There needs to be a real product where I can clearly see why a crypto token is necessary and the product fits a real need. The days of raising funding on a whitepaper only are over. The minimum requirement today is a Minimum Viable Product. There needs to be a clear strategy around how the token fits with regulatory issues as one cannot afford having it shut down because the SEC declared it a security offering and now demands all the related documentation. In addition to checking the basics of the business behind the ICO, I also look for quality providers such as a legal firm who has handled ICOs before and other investors who know something about the space.  Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more Connect with him about fundraising, business growth, and emerging technologies.