Interview with Petr Sima partner of Depo Angels for Transatlantic Startup Pitch event


A couple of questions for Petr Sima related to the impact of the corona crisis for the startup investment, remote investing, and other trends... Don't miss the online panel discussion with European and US angel networks this Thursday 24th.

Petr Sima - partner of Depo Angels

What trends are you seeing with angel groups? Are you seeing investment syndicates more open to including international investors in their groups or investments?

Before COVID we could see increasing interest of angels in cross border deals. But the majority of angel investors stopped new investments because of COVID. This might change soon, early-stage startups were not so much hit in general.

 

With the world opening up to the idea that meetings and relationships can be based in a virtual setting, how are you seeing this impacting investors' investment theses?

VC’s adapted quickly and started closing deals online. This is more difficult for business angels, they need to get a “gut feeling” about founders, not an easy task online. But it is feasible, especially as angels always co-invest. And with the presence of local angels, I can see more investors considering investments even across the Atlantic.

Online investment is here to stay. As a norm for a while, as a proven option later. It brings many difficulties, but one major opportunity as well. Distance is not a problem anymore. If you do an investment process online in your city, why couldn't you do it on another continent? Opportunity is huge. European investors can invest in US fast-growing startups. US angel investors can find good European companies with lower valuations (especially in CEE). And help them to grow in the US market. 

 

How can virtual events lead to opportunities for both the investors and the startups that participate in the events?

COVID crises have a positive impact on this aspect. Online is a norm, both investors and founders have a bigger reach. Distance is not important, everybody saves a lot of time and money. It is much easier to participate in an online event, it is much easier to organize one. Good quality virtual events will stay and will help to increase cross border investments. And there will be more of them.

 

When your members want to do due diligence on a company, what are some similarities and differences between the US and Czech are there?

The approach is absolutely the same. Financials don't change, business aspects neither. There is only a slight difference in legal and tax structuring, but generally, in seed, this is not so complicated. Most successful European early-stage startups move to US or UK jurisdiction when raising series A or B anyway.   

 

What other advisory services do you provide in order to mitigate the investment risk at your network?

First of all, we provide business angels with the quality deal flow at Depo Angels. We manually screened every project. Our members can see structural information, they can select companies as they like and create their own portfolio. A portfolio is the best way to manage risk. Angels can also outsource to us their due diligence, we can assist with leading the round. We have an angel found investing in our deal flow, generally ready to lead and help other investors. We are open to other similar funds or syndicates. We are also ready to help with syndication. 

 

You can expect much more at the panel discussion between European and US Angel Networks on the Transatlantic Startup Pitch online event. If you are a startup investor or you consider to be feel free to join us.

transatlantic Startup Pitch Event by Depo Ventures, Depo Angels and Bay Angels

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