Dan Gavel on Building a Diversified Investment Strategy in Venture Capital

First Cheque

Summary

Dan Gavel, founder of Black Sheep Capital Fund and the Flock Syndicate, shares his unique approach to investing and discusses the importance of understanding risk. He emphasizes the need for investors to have the capacity to accept risk and adapt their investment strategies to the changing market. Dan also talks about the benefits of running a fund, a syndicate, and making personal angel investments simultaneously. He explains how he decides which investments go to each channel and the importance of building relationships with founders. Dan believes that being a lead investor is more about post-investment support and guidance rather than pre-investment due diligence. He also shares a personal story of a risky investment that didn't go as planned.

About The Guest(s)

Dan Gavel is the founder of Black Sheep Capital Fund and the Flock Syndicate. He has a background in financial planning and has made numerous successful angel investments. Dan is known for his down-to-earth and innovative approach to investing.

Key Takeaways

• Understanding risk is more important than trying to fully comprehend it.
• The investment landscape is constantly changing, and investors need to adapt their strategies accordingly.
• Running a fund, a syndicate, and making personal angel investments simultaneously allows for a more diversified portfolio and greater exposure to the ecosystem.
• Being a lead investor is about building relationships with founders and providing post-investment support and guidance.
• It's important to have conviction in an investment and be willing to take risks.

Quotes

• "For us, the pre-seed stage is all or nothing. We're aware that it's a risky business, and we accept that." - Dan Gavel
• "The lead investor is the person who wants to build a relationship with the founder and do what it takes to get the deal across the line." - Dan Gavel

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Mentioned in this episode:

June 2024 – Vanta First Cheque

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