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Geoff Ralston

02/07/18

@ Y Combinator

Investor School is a four-day course teaching the basics of startup investing, held for the first time at Y Combinator in Mountain View.

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Geoff Ralston

02/07/18

@ Y Combinator

We're offering both in-person attendance and a live stream, along with a massively open online course (MOOC) format to reach a wider audience.

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Geoff Ralston

02/07/18

@ Y Combinator

The goal of Investor School is to share knowledge from Y Combinator to help people become effective angel investors and avoid common pitfalls.

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Geoff Ralston

02/07/18

@ Y Combinator

We've observed ineffective behaviors in angel investing, which indicates a need for structured education in this area.

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Geoff Ralston

02/07/18

@ Y Combinator

To participate in Investor School, you must be an accredited investor, which involves meeting specific income and wealth criteria set by the SEC.

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Geoff Ralston

02/07/18

@ Y Combinator

Investing in startups is high-risk, and potential investors should be prepared for both significant upside and possible losses.

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Geoff Ralston

02/07/18

@ Y Combinator

The amount to invest in startups varies greatly; while some may invest as little as $5,000, typical investments are often in the tens of thousands of dollars.

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Geoff Ralston

02/07/18

@ Y Combinator

Day one of Investor School will cover the fundamentals of angel investing, including its history and why it matters.

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Geoff Ralston

02/07/18

@ Y Combinator

The course will also explain the mechanics of startup investing, including how convertible notes work and the standards for interacting with founders.

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Geoff Ralston

02/07/18

@ Y Combinator

A key focus will be on evaluating companies, especially for non-technical investors, emphasizing the importance of meeting and discussing with founders.

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Geoff Ralston

02/07/18

@ Y Combinator

When assessing a startup, I look for the founder's passion and resilience, as these traits are crucial for overcoming challenges in building a company.

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Geoff Ralston

02/07/18

@ Y Combinator

I prefer to directly challenge founders on their ideas to gauge their confidence and ability to handle criticism.

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Geoff Ralston

02/07/18

@ Y Combinator

The course aims to create thoughtful angel investors who make informed decisions and build better relationships with the companies they invest in, and I invest when I get excited about a company, believing I can always help because I've seen so many companies over my thirteen years of angel investing.

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Geoff Ralston

02/07/18

@ Y Combinator

Angel investors can have a substantive impact on the companies they invest in, but often their impact is marginal, meeting with a company only once or twice a year.

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Geoff Ralston

02/07/18

@ Y Combinator

The main reason I invest is because I believe in the company and its potential, not just to be a helpful investor.

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Geoff Ralston

02/07/18

@ Y Combinator

It's important for new angel investors to meet with many founders and companies to make educated judgments about investments.

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Geoff Ralston

02/07/18

@ Y Combinator

Investing in a space where you have some familiarity can help you make better investment decisions.

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Geoff Ralston

02/07/18

@ Y Combinator

To be a good angel investor, you need to follow your passion but avoid emotional decision-making, as it can lead to bad investments.

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Geoff Ralston

02/07/18

@ Y Combinator

Learning how to say no explicitly and kindly, with clear reasons, is a crucial part of being a good investor. You have to learn how to say no sometimes, and you should be as honest as you can, especially if it can be helpful.

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Geoff Ralston

02/07/18

@ Y Combinator

As an angel investor, you need to meet with at least a hundred companies to ensure you have sufficient deal flow.

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Geoff Ralston

02/07/18

@ Y Combinator

If you don't have deal flow, you'll end up taking the first opportunity that comes your way, which can lead to poor investment decisions.

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Geoff Ralston

02/07/18

@ Y Combinator

Being a good angel investor requires you to be rigorous, organized, and dedicated, even if you're just dabbling in investments.

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Geoff Ralston

02/07/18

@ Y Combinator

The course is designed for angel investors who are investing their own money and enjoy working with founders, not for professional venture capitalists.

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Geoff Ralston

02/07/18

@ Y Combinator

Investing in startups should not just be about making a difference; you should also consider the potential for returns on your investment.

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Geoff Ralston

02/07/18

@ Y Combinator

Don't sweat the small stuff when angel investing; focus on the potential for big wins instead.

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Geoff Ralston

02/07/18

@ Y Combinator

Be a good person to have on a founder's cap table; your reputation can significantly impact your deal flow.

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Geoff Ralston

02/07/18

@ Y Combinator

Investors should understand that a 'no' from a founder doesn't mean forever; it often means 'not now' and can change later.

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Geoff Ralston

02/07/18

@ Y Combinator

Don't try to be the last money in; it shows a lack of confidence in your investment decision.

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Geoff Ralston

02/07/18

@ Y Combinator

Invest in founders who have a strong track record and the capability to lead their companies effectively, even if the market is tough.

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Geoff Ralston

02/07/18

@ Y Combinator

Investing in areas where you have a belief system or understanding is crucial; avoid spaces that are too complicated or unfamiliar.

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Geoff Ralston

02/07/18

@ Y Combinator

The application for Startup Investor School opens on Thursday, and interested individuals should visit investor.startupschool.org to apply.

Startup Investor School Preview with Geoff Ralston

Takeaways