What Investors Really Look For: Insights from 70+ Investments Per Year - with Jens Lapinski, Angel Invest

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About this episode

Jens Lapinski is one of Europe's most active angel investors. As founder and CEO of Angel Invest, he and his team have completed over 200 investments and invest in 70 new startups every year. In this interview, he shares his experience and provides practical insights that every founder should find valuable.

How Angel Invest Works: Portfolio Strategy with System

The numbers from Angel Invest are impressive: 70 new investments per year means more than one investment per week. This high frequency isn't coincidental but strategically chosen. Angel Invest deliberately focuses on a large portfolio, as only about 5% of all investments generate the majority of returns.

The structure at Angel Invest is unique: the team works with both full-time and part-time partners, all of whom are involved in the decision-making process. This diversity in expertise enables them to professionally evaluate different industries and markets.

What Angel Invest Looks for in Founders

After over 200 investments, Jens has developed clear ideas about what makes outstanding founders. Three factors are key:

Energy and Perseverance: Founders must be able to endure ups and downs over years. The energy to keep going even during difficult phases is crucial.

Intelligence and Learning Ability: It's not just about technical expertise, but about the ability to quickly learn new topics and learn from mistakes.

Team Dynamics: Can the founders grow with their company and market? Are they willing to adapt their roles as the company scales?

Particularly interesting is Jens' observation about role changes among founders. It's often unclear whether a founder changes roles because they're fleeing from management responsibilities or because the board has pushed them out.

Markets Are More Important Than Ideas

One of the most important insights from Jens' experience: markets are often more decisive than the original idea. His framework for market analysis is pragmatic and focused.

Founders should love their market and customers, but not be too attached to their original solution. The willingness to adapt is crucial for success.

Secondaries as Strategic Instrument

Angel Invest strategically uses secondaries as part of their portfolio strategy. By selling stakes in later funding rounds, funds can be paid back early, which improves the risk-return structure of the overall portfolio.

The decision of when to sell positions follows clear criteria and is part of a long-term strategy.

Tips for Founders: Courage and Preparation

Jens' most important advice to founders: be bold and actively approach investors. Many founders make the mistake of waiting too long or not preparing sufficiently.

The most common mistakes in investor outreach:

• –Insufficient preparation for due diligence questions
• –Unrealistic valuation expectations
• –Lack of clarity about their vision and strategy

Developments in the German Startup Landscape

The German startup landscape is currently changing significantly. The influence of AI companies is particularly noticeable and also affects investment decisions at Angel Invest.

Despite the high number of AI startups, Angel Invest maintains its diversified approach and continues to invest across industries.

Red Flags: What Scares Off Investors

From his extensive experience, Jens has identified clear red flags that founders should avoid. These warning signals can cause investors to lose interest before a real evaluation even takes place.

Jens Lapinski's insights show that successful investments are the result of systematic evaluation, clear strategies, and the ability to realistically assess both opportunities and risks. For founders, this means: preparation, courage, and the willingness to continuously adapt are crucial for success in fundraising.