Seed and Growth Stage Tech Investor Mandate: Charles
Small Business & Startup Private Investor Mandate Interview
Founders of seed stage deep tech or health companies, and private investors who want to understand how an angel and SPV investor sets a mandate.
Said on the call
"If you try to pick a few winners, you're not smarter than everyone else on the planet, and I guarantee you will lose money."
"If you don't have the background, resources, time, etc. to do this, don't pretend or fool yourself. Partner with specialists who do."
"We're looking forward with less data rather than backwards with more data."
What you will hear
Charles invests in seed and growth stage tech companies, mostly deep technology, and more than half of his work is in health or biomedical. He appears on cap tables in three ways: personally as an angel, through a small family office, and through an SPV that serves individuals and larger investors such as family offices. He prefers equity over debt and has a global view, focused on North America and Europe.
His financial mandate is an overall IRR of at least 25% per year, with a minimum goal of 10x in five years on each proposition. Initial checks run in the five to six figure range and grow as a company proves itself. His advice is to treat this as an asset class with diversification, to partner with specialists, and to check even the claims of respected experts.
Key facts
- Charles invests through three identities: personally as an angel, through a small family office, and through an SPV that serves individuals and family offices.
- His initial stake is in the five to six figure range, rising to six to seven figures and sometimes eight or nine figures overall.
- His financial targets are an IRR of at least 25% per year and a minimum 10x return in five years.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Small Business & Startup Private Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around SPV structuring, investor eligibility rules and offering documents. Do not use AI to write your own legal agreements.
The 5 big lessons
- Same strategy, three cap table roles. Charles invests the same way as a personal angel, through a small family office, and through an SPV. Only the check sizes differ.
- Staged check sizes. He starts with a five to six figure stake. He then raises it to six to seven figures as the company proves itself, and in some cases to eight or nine figures overall.
- Clear return thresholds. He seeks an overall IRR of at least 25% per year. He also looks for at least a 10x return in five years, knowing some companies will do very well and others will fail completely.
- Diversify and use specialists. Charles says high risk tech should be treated as an asset class with necessary diversification. Investors without the background, resources or time should partner with specialists.
- Check the luminaries too. A respected name backing a deal is not enough. Charles says experts can disagree on the same proposition, so investors should do diligence on the arguments and look at how much skin in the game the backer has.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What kinds of companies does Charles look for?
He looks for seed stage companies or those at the first customer stage, usually in deep technology. More than half of his work is in health or biomedical, with energy and materials sustainability following. He prefers companies with IP or another protective advantage.
What returns does Charles target?
He seeks an overall IRR of at least 25% per year. He also wants at least a 10x return in five years as a minimum threshold on each proposition.
How can investors contact Charles?
He prefers email or phone and does not use social media. He says a phone call usually turns into an email exchange.
Put this into practice with the data room checklist. See all investor mandates resources.
