Our guest this week is Martin Tobias, the Founder of Incisive Ventures. Incisive is a Seattle-based firm that invests in pre-seed software startups in the US and beyond. Prior to starting Incisive, Martin was a highly successful angel investor and a serial entrepreneur who served as the CEO of 3 venture-backed startups.
We discuss why Martin loves pre-seed investing, valuation trends, the challenges and opportunities that come with investing abroad, and why investors should be careful to not put too much weight on the reputations of their co-investors.
The episode is now available on Apple Podcasts, Spotify, Amazon, and YouTube Music.
Chapters
00:00 Introduction to Startup Investing
00:49 Understanding Pre-Seed Investing
04:08 The Value of B2B Software
07:55 International Investment Opportunities
11:55 Navigating Exits and Profitability
16:10 Managing Deal Flow as a Solo VC
20:00 Evaluating AI Startups
23:52 Portfolio Construction and Investment Strategy
27:58 Valuation Trends in Pre-Seed Investing
Takeaways
Pre-seed investing is about being the first institutional money into startups.
B2B software companies are often more capital efficient than other sectors.
Investors should focus on building valuable businesses rather than fixating on exits.
Valuation trends are shifting, with pre-seed valuations decreasing.
International investments can offer valuation and cost arbitrage opportunities.
It's crucial to validate co-investor signals and not overvalue them.
Automation and data analysis are key for managing deal flow effectively.
AI startups should solve business problems that were previously intractable.
Portfolio construction should focus on making multiple bets to increase chances of success.
The startup ecosystem is benefiting from a renewed focus on profitability.
The content here is for informational purposes only and should not be construed as investment, legal or tax advice. The opinions expressed by guests are their own and do not reflect the views of Seaplane Ventures. Our host, guests and clients may hold investments discussed in this podcast. Please invest responsibly.