Summary

Rayn Ong, an angel investor and founder of Archangel, shares his insights on early-stage investing in this episode of First Cheque. Rayn discusses his first investment in Blackbird Fund One and how he built his network in the Australian startup ecosystem.

He emphasises the importance of compounding value in both networks and investments. Rayn also talks about his investment strategy, including his focus on breakout companies and his approach to evaluating opportunities.

He shares his thoughts on portfolio synergy and competition within his portfolio. Overall, Rayn's entrepreneurial approach to investing has led to his success in the industry.

About The Guest(s)

Rayn has been an active angel investor since 2014. He has invested in the early rounds of Instaclustr, Propeller Aero, HappyCo, Morse Micro, Carbar, Eucalyptus, Vow Food and StepN which are all valued at over $100 million now.

Rayn is a partner at Archangel Ventures, an angel fund that backs founders at the earliest stage possible. Rayn made his debut on the AFR Young Rich List in 2022 as an angel investor.

Key Takeaways

• Cultivating a strong network and building relationships is crucial for sourcing high-quality deals in the startup ecosystem.
• Specialising in a certain vertical or industry can provide a competitive advantage in evaluating startups and making informed investment decisions.
• The ability to identify breakout companies and double down on successful investments is key to achieving high returns in early-stage investing.
• Investing in companies that have synergy with existing portfolio companies can help derisk investments and create value for the entire portfolio.
• Setting clear expectations with founders and providing guidance throughout the investment journey can lead to successful outcomes and future funding rounds.

Quotes

• "We want to align for a good founder experience. We disclose upfront if we have exposure to potential competitors and encourage sharing to benefit the entire ecosystem." - Rayn Ong
• "We minimise risk by starting with small checks and gathering information over time before making larger investments." - Rayn Ong
• "The ability to compound value in networks is as valuable for early-stage investors as it is for the assets we invest in." - Rayn Ong

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Mentioned in this episode:

November 2024 - Galah Cyber

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