Jared is a Partner at Y Combinator and early investor in Cruise, Instacart and Parse. Below are some investing lessons from our session with Jared.
Diligence doesn’t tell you what a business will become
You can infinitely diligence any company: calling customers, researching competitors and so on. This is problematic if it causes you to lose sight of the future potential.
Jared recalls a deal he researched exhaustively, and passed because of gaps in their product offering. The company later fixed these gaps. He regrets passing.
Sometimes you should invest in great teams, even if everything else is terrible
Investors look at a number of things when considering a business, including the idea, team, market and traction. The default instinct is to weigh all of these equally, although Jared believes that team is most important. Even if the idea, market and traction are all terrible, Jared will still invest if he loves the team enough.
Spearhead is a program that funds and mentors founders so they can start angel investing. Founders get exclusive access to masterclasses from investors such as Jared Friedman. Spearhead is currently accepting applications for the 2019 cohort. Apply by Oct 31