Crafting Your Investment Thesis: How to Decide What to Invest In

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Episode Summary:

Having a clear investment thesis helps you make better decisions, improve your deal flow, and maximise your returns. Cheryl and Maxine break down exactly what an investment thesis is, why it matters, and how to structure one that fits your risk appetite, interests, and long-term goals.

They explore the core elements of an investment thesis, including industry focus, stage, business model, and geography. Plus, they highlight key company criteria investors should consider, from strong founding teams and large market opportunities to traction and defensibility.

Beyond just what to invest in, this episode also covers how to stand out as an investor, build a strong value proposition, and get access to the best deals. They wrap up with an essential discussion on portfolio construction, time horizons, and risk management, so you don’t run out of money before your portfolio has a chance to deliver returns.

If you're looking to sharpen your investing strategy and back better startups with confidence, this episode is a must-listen.

Key Takeaways:

00:00 – Introduction: Why your investment thesis matters

01:49 – Defining an investment thesis: What it is & why it's essential

04:49 – How to break down your thesis into clear categories

05:16 – Industry focus: Verticals, horizontals, and emerging trends

07:05 – Stage focus: Pre-seed, seed, growth—how to pick your sweet spot

08:24 – Business model focus: B2B SaaS, marketplaces, and beyond

10:01 – Geography: The pros and cons of investing locally vs globally

14:29 – Key questions every investor should ask themselves

17:24 – Company-specific criteria: How to create your investment checklist

22:33 – Evaluating market size and growth potential

25:39 – Pain vs pleasure: Investing in painful problems vs unmet desires

29:54 – Unique or niche theses: Second-time founders, alumni networks, and more

33:46 – Access and deal flow: How to attract great opportunities

38:35 – Understanding your personal risk profile & timeline expectations

Resources

Angel Academy – Comprehensive angel investing course for Australia & NZ: www.venture.academy

Aussie Angels – Cheryl’s platform for angel investing https://www.aussieangels.com/

Co-Ventures – Maxine’s venture capital firm https://www.coventures.vc/

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