When it comes to startup investing, I am “industry agnostic.” In other words, I never invest in a deal just because it’s in a certain sector.
Instead, I evaluate every deal individually. I look at the fundamentals, model, team and growth rate. This approach has naturally led to me to have a diversified portfolio across many different sectors. I’ve invested in startups in software, cannabis, logistics, healthcare, rideshare and direct-to-consumer (DTC) just to name a few.
Right now, some sectors are not doing too well. Cabify, an Uber competitor in South America, was one of my first investments. It was growing like a weed when I invested. And until this crisis, it was doing very well. Now, though, the rideshare space is experiencing unprecedented difficulties. Some companies in the space aren’t going to survive.
I’m not too worried about the fate of a single company though. I have plenty of other investments which are thriving today. Aircall, an investment I made back in early 2018, makes virtual call center technology. It’s doing better than ever and just raised $65 million at a $500 million valuation. Here’s an excerpt from Bloomberg’s report on that news.
Aircall, which makes cloud-based software that can help businesses create virtual call centers, said it raised $65 million in its latest funding round as a surge in remote working makes its products more popular.
The startup, whose product can be used to add analysis, routing, contact sharing and customer management functions to voice calls, will use the funds to add about 150 employees and expand geographically, Chief Operating Officer Jonathan Anguelov said. The Paris-based company is now valued at about $500 million.
There was no way to predict this crisis. But by investing in the best deals I could find, across all sectors, I’m confident that my portfolio is going to be OK in the long run.
As online startup investors, this remains the best strategy. Invest in the best deals that come your way, regardless of industry. This provides a natural diversification. And a diverse portfolio is a strong portfolio.