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Neumann writes internal investment memos for every deal as a solo investor

Jerry Neumann · 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann · Apr 30, 2018 · at 18:30

Jerry Neumann, a solo seed investor, explains his personal investment process and how he forces discipline on himself to counteract confirmation bias.

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“I write myself an investment memo. I kind of feel stupid doing it because nobody else reads it, but I force myself to do it.”

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More from Jerry Neumann

Opinion
Neumann: Startup founders should establish a board of directors from day one
“I think they should have a board from day one, and I know that's not a popular opinion, especially with founders”
Jerry Neumann Apr 30, 2018 ▶ 8:25 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
Assertion Not checkable as stated
Neumann: Startups almost always perform worse after removing their founders
“When you remove the founder from a company, the company almost always does worse.”
Jerry Neumann Apr 30, 2018 ▶ 10:50 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
Assertion Not checkable as stated
Neumann: Top seed funds like USV outperform when market prices are low
“If you look at the best performing venture funds in history, at least seed stage, like things like USV, you will find that they started investing in a market where the market price was below the indicated discounted price. When the market is above where the in…”
Jerry Neumann Apr 30, 2018 ▶ 17:13 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
Opinion
Neumann rejects Jason Lemkin's view that VC is just packaging startups
“I don't look at it that way. If you say it that way, it makes it sound like you're trying to gild the lily, right? You're trying to sell them something that's not actually true. I do think that you need to know what the company needs to look like to raise more…”
Jerry Neumann Apr 30, 2018 ▶ 19:34 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
Opinion
Neumann: Spray-and-pray VC strategies fail without active lead investors
“If you're making a hundred investments where you're the lead or there is no lead and nobody is helping the entrepreneur, then I think that's not going to work.”
Jerry Neumann Apr 30, 2018 ▶ 6:03 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
Insight
Neumann: Early-stage startups without active board members perform significantly worse
“My experience is the companies where there is nobody involved from the beginning on the board helping the entrepreneur tend to do a lot worse than the companies where there is somebody involved.”
Jerry Neumann Apr 30, 2018 ▶ 6:33 20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann
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