Chandrasekaran: Selling Breakout Startups Early Is One of the Worst Angel Moves
Anand Chandrasekaran · Inside the mind of Anand Chandrasekaran, on building 5 products with 10m+ users and angel investing · Jun 1, 2020 · at 54:43
Angel investor Anand Chandrasekaran warns against selling stakes in breakout companies prematurely instead of letting compounding work.
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“So I've heard a lot of angel investors who are patient for two, three, four years, and then like exit soon as the company breaks out, right? And I would say this is probably one of the worse things you can do for yourself. And you know, if you sort of look at the power law, like you're going to make most of your returns from the small number of companies that break out. And so exiting those at that time is probably not a great service that you can do for yourself.”
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