1. It’s not just about picking a great startup – but making sure they pick you as an investor   

The tech space is incredibly competitive, and the best deals are hard to get in on. Startup companies with the perfect recipe of superstar founders and a highly innovative business have more offers for money than they know what to do with.

For technical reasons, they can’t take all the money that’s offered, so they must be selective and choose investors according to their status and strategic value.

2. You should start by creating an ‘investment thesis’

An investment thesis is basically a strategic approach to what kinds of companies you want to invest in, and at what stage you want to invest. Picking the right places to look for opportunity greatly increases your chances of finding a good fit.

Your investment thesis should not just focus on what investments can bring to you, but what you can bring to those deals as well.

3. Invest in a mix of VC funds as well as startups

VC funds are less risky than startups, however investing some of your capital into VC funds doesn’t only derisk your portfolio, there are even better reasons to do it.

VC funds often offer investor education programmes, networking events and mentorship that you can take advantage of to build your network and know how in the VC industry.

4. Get perspective of the numbers

In the venture capital space, numbers can start to lose their meaning. Large funds have billions under management and allocate up to €150-200m per investment. Small funds have tens of millions, and anything less than €10m is a micro-fund.

Making the earliest investments in extremely young companies (pre-seed investments) carries a typical minimum entry of €50k.

5. This is one area where big Maltese businesses would be better off collaborating rather than competing

Pooling money gets collective access to better deals, which is a win-win. Maltese businesses and family offices should see each other as potential collaborators in the VC investment space.

Making more and larger investments means reducing risk, gaining access to powerful international networks, and opening the door for tech companies founded in Malta at the same time.

Beppe Coleiro is the co-founder of creative and strategic branding agency Blonde and Giant, specialising in working with startups and venture capital funds to raise investment and develop the world’s most innovative companies. To date Blonde and Giant has facilitated over €1bn in fundraising for startups in Europe and North America.

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