<aside> 💡 Note from Dalton Caldwell

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1st Principles

• Every investor benefits from having an investment process
• Map out your process funnel
• The role of face to face meeting in your process

Dalton emphasis the importance of having an investment process. Everyone should have a process and it could be a very simple one especially when you are just starting. It's an advantage you should embrace.

Face to face meeting is the most important part of the process. This class was recorded in 2018, I'm sure the understanding of face to face meeting would have been updated to include a Zoom call.

Process Funnel

• Leads: this may come from friends, media and all forms.
• Introductions: these are startups you've had an introduction to. You have exposure to the company.
• Qualification: Is this an industry you are interested in? Is it something you are excited about funding? Is it fit for some kind of company you wanted to find? Those are the basics of qualifications process.
• Decision-making process: how do you decide a yes or no?
• Close the deal: make the investment.

It's important that you have some process set out the way so that you can make optimal investment decisions.

Example of a process funnel:

1. I want to invest 50k in 10 companies per year.
2. I'm targeting 5 companies per batch.
3. I will meet 20 companies at the demo day and make offers to my favourite 5.