How to invest in startups in times of uncertainty
According to Shelly Hod Moyal, Founding Partner and CEO of iAngels, Israel has transitioned from start-up nation to scale-up nation and is becoming a partnership nation.
“We work with all major companies and countries in the world, even with Arab countries, which would have been unthinkable 10 years ago,” she said at last week the Jerusalem Post Annual Conference.
History consistently shows that some of the best companies were founded in times of crisis, like Uber and Airbnb and even Apple and Microsoft, and that some of the most profitable VC vintages have come during bear markets.
But staying cool and investing in times of uncertainty isn’t always easy. Hod Moyal shared some tips to help her invest in uncertain times.
Have a plan, a sense of purpose, and do your research
After a decade on Wall Street, it was an easy decision for Hod Moyal to return to Israel and choose VC. Israel has all the ingredients needed to venture out: technology, talent, innovation, agility, perseverance and proven returns – Israel’s culture possesses a strong survival mentality fueled by a strong belief that can overcome even the roughest of times, what in times of even more important is uncertainty. This strong belief often springs from a deep sense of purposeHod Moyal’s first tip for investing in turbulent times.
“I can tell you that one of the investments we’ve made over the last few years was to back an entrepreneur named Talmon Marco… who, after two successful exits totaling $1 billion, decided to capitalize on his success, to give back to the world,” she said. “He founded a company called H2Pro, which is now positioned as an industry leader in producing hydrogen at scale in the most efficient and sustainable way – a necessity for a greener planet.”
Hod Moyal’s second tip was to have a plan because, she said, “if you don’t have a plan, you won’t be able to strategize and make emotional decisions.” But just making a plan isn’t enough; You have to make a plan and create a framework that allows you to stick to it.
Finally she said that the The best way to invest in times of uncertainty is with conviction “by doing research”. This allows you to develop your own convictions instead of relying on the investment ideas of others, which in turbulent times can mean that the weak hands shy away from making good investments.
The Jerusalem Post Annual Conference 2022: Shelly Hod Moyal, Founding Partner and CEO of iAngels (MARC ISRAEL SELLEM)
She explained that when she meets entrepreneurs, she tries to think about what the world will be like in 10, 20 and 30 years and looks for entrepreneurs who focus on solving the biggest pain points facing the world in the next generation will be faced.
“If you don’t have time to do your own research, consider investing in a VC that has an investment strategy that aligns with your own,” added Hod Moyal.
“What motivates me today as a venture capitalist in Israel is the ability to focus my energy to invest in entrepreneurs who are solving some of the most pressing challenges.”