Angel Investing with Harsh Sinha, CTO of Wise and angel in more than 50 startups and multiple VC funds.

In Europe, Wise stands out as one of the breakout successes making the continent. Anthony and Tom sat down with Harsh to tell his story and dig into his learnings and perspectives on angel investing.

Andreas Munk Holm✌️

Dec 14, 2023

Transcript

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Join us as Tom Wilson from Seedcamp and Anthony Danon from Cocoa talk to Harsh Sinha, Wise-CTO about his angel investing journey, thesis and strategy and core learnings.

Harsh is a seasoned technologist with a passion for creating innovative, scalable, and customer-centric digital experiences. With a strong foundation in team building and a knack for impactful business strategies, he's played a pivotal role in developing server-side technologies and enhancing consumer experiences on web and mobile platforms.

His professional journey includes a significant tenure at PayPal as Director of Product, where he spearheaded the product strategy and development of mobile applications and software for mobile wallet experiences. Join us as we dive into Harsh's insights and experiences in powering global financial infrastructure and pushing the boundaries of technology in finance.

Scroll down ⏬ for the core learnings & episode chapters 👀

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Chapters:
00:00:00 - Introduction to the Super Angel Pod
00:02:32 - Building Experiences & the Primacy of Passionate Builders
00:07:19 - On Non-Technical Founders and Becoming More Objective
00:11:42 - Core Learnings from Angel Investing
00:13:52 - Finding a Middle Ground
00:16:06 - Balancing Diversification and Time to Support Founders
00:18:17 - Assessing Founders and their passion for solving problems
00:20:25 - Three Core Learnings: Team, First Principles, and Avoiding Bias
00:22:35 - Being Naive in Angel Investing and the Importance of Passion
00:24:44 - The Reality of Investments
00:26:55 - Lessons in Angel Investing & Investing Across Europe and Asia
00:31:19 - The Access Issue in European Markets
00:33:32 - Building a Global Lens and Investing Internationally

Journey into Angel Investing

Harsh's journey into angel investing began with his deep-rooted passion as a builder, creating products and experiences for customers, primarily at eBay and PayPal. His interest in angel investing sparked when he encountered individuals who were working on ideas he had only noted in his own notebook. This connection with passionate problem solvers and builders led him to start collaborating with early-stage companies, combining his technical expertise with a desire to support innovation.

"I have a notebook that I still keep, that I have ideas that one day I would want to solve.
Harsh Sinha

Investment Thesis & Strategy

Harsh's investment thesis doesn't focus on one particular industry or type of company. Instead, he takes a broad approach, looking for interesting and innovative ideas. Earlier in his career, he leaned more towards payments and marketplaces due to his background, but over time, his investments have diversified across various industries. Harsh emphasizes the importance of team composition, particularly the presence of both a 'hustler' (for vision and sales) and a 'hacker' (for product development), and he assesses whether founders are committed to their idea for the long term.

I've got about 50 investments across the ecosystem, and this is just direct deals or like some early angel list deals. And this is besides my investments as an LP, in other venture funds and the like. So that's, that's separate. And if I look at my portfolio, a large portion of that is US and Europe. I would say the later last few years, more, more in Europe, because I've been spending more time there. Also, a lot of people I've invested in come through my network. Some of them are ex-Wisers who've gone on to build companies.
Harsh Sinha

Core Learnings from Angel Investing

The three core learnings Harsh highlights from his experience in angel investing are:
The paramount importance of the founding team,
The necessity of overcoming personal biases, and
The realization that angel investing should not be pursued solely for financial returns.
Harsh stresses the significance of being passionate about the ideas and people one invests in and learning from each investment.

Most Counterintuitive Learning in Angel Investing

Harsh finds that being an expert can sometimes be a liability in angel investing. This insight reflects the idea that too much expertise can lead to overthinking or bias, potentially causing investors to miss out on innovative ideas that don't initially align with their understanding or experience.

Top Tips for Angels Looking to Invest Internationally

Harsh advises angels to recognize and understand the unique nuances of each market. He suggests that while some products may have global relevance, local insights and adaptations are crucial for success. This approach involves deep engagement with founders to grasp why a product that exists in one market might be needed or adapted differently in another.

Core Advice to Your 10-Year-Younger Self

Harsh would tell his younger self to be more cautious in falling in love with ideas and people. However, once a commitment is made, he advises going all in. This reflects a balance between careful selection and wholehearted support once a decision to invest is made.

"Maybe fall in love less. But once you do go all in."
Harsh Sinha