Investor FAQ
Q: How does i2X help me find the best startups?
i2X provides seed stage investors with the best seed stage investment deals. Sign up, and you can instantly view a constantly refined repository of technology startups in North America, Europe and Israel. Every startup that makes it on to i2X is part of a qualified startup network - meaning an incubator, accelerator or tighly managed startup community, which ensures our entrepreneurs are equipped with the latest knowledge, inpiration, mentor and investor networks.
After signing up, you will only see qualitative startup data - to see more in-depth ratings and deal data, you will have to get verified by an i2X Investor Relations Executive due to SEC regulations. The verification takes place over the phone, skype or in person at an i2X investor event. We want to know our investors to ensure a trusted relationship between all parties - i2X has evolved from real-world investor and startup networks in Silicon Valley and New York who decided to make seed stage investments more efficient, transparent and beneficial for everyone, and we are determined to maintain this culture of trust and transparency.
Currently, i2X is completely free of charge. We might soon introduce a small verfication fee to cover related expenses, though.
Q: What can I see if I sign up, and when do I need to get verfied?
i2X provides you with a constantly refined repository of the best seed stage startups once you sign up. During the sign process, you have to confirm that you are an accredited investor according to Reg. D of the Securities Act of 1933.
Once you are signed up, you will be able to see basic qualitative startup information, but won't be able to access contact and deal data. In order to access this data, you need to get verified by an i2X Investor Relations Executive via a phone call or on an i2X investor event. We do this both to make absolutely sure all of us comply to SEC regulations and ensure all investors on i2X are vetted and aware of their responsibilities, but also because we want to know our investors to ensure a trusted relationship between all parties. i2X has evolved from real-world investor and startup networks in Silicon Valley and New York who decided to make seed stage investments more efficient, transparent and beneficial for everyone, and we are determined to maintain this culture of trust and transparency.
The verification process is NOT an attempt to keep the i2X investor communities a closed "old boys club" as practised by other platforms, but an attempt to build a transparent investor community that embraces accountability and responsibility.
Currently, i2X is completely free of charge. We might soon introduce a small verfication fee to cover related expenses, though.
Q: How does i2X find great startups?
i2X has one of the most extensive networks in the community, reaching from Silicon Valley incubators to New York co-working spaces to European startup bootcamps. Our founding team has lived and breathed startups and seed stage investing in places like Menlo Park, Santa Monica, Manhattan and Berlin, know local startup community organizers, and attend key events. From YC demo day to Palo Alto Hacker parties, from General Assemb.ly pitch nights to Startup Weekends all across the country. We care for the startup community, and maintain close relationships to dozens of startup HUBS across North America, Europe and Israel. At the same time, we love investments and economic efficiency - this blend of real-world startup involvment and an advanced asset management approach makes i2X the most powerful instrument in seed stage technology investing.
Q: What is the school of thought behind seed stage investing on i2X?
Seed stage investing can be the most profitable asset class in any portfolio - if you know how to do it. The problem has always come down to two factors: The access to the best seed stage deals, and the knowledge exactly which ones will succeed. i2X is build around a clear strategy: solving the access problem by utilizing its vast reach into the startup ecosystem, and tackling the knowledge problem in a more effective way: instead of predicting which startups will succeed - something even the most experienced Silicon Valley investors won't succeed in - i2X predicts which ones will fail. Predicting failure has proven to be much easier and more reliable, and allows to reduce the vast number of startups to the ones that have a clear shot of changing the world, their industry, and investors financial returns.
While within these group of the best startups, an investor's ability to pick the ones that will succeed dramatically decreases, this group has an extremely high probability of containing the future $1bn+ exits investors are looking for.
Any startup with a $1bn exit means a 100-200x return for an i2X investor - or in other words, compensates for 100-200 failed investments. Based on this rationale, i2X has done an in-depth quantitative analysis of over 200 startups over 5 years, and derived an investment approach that allows to capitalize on the huge value gains in technology startups while dramatically reducing investment risk. This approach enables investors to rapidly source large numbers of filtered, high potential startups, and invest across large numbers. With increasing numbers, risk decreases exponentially, while returns decrease more linear to certain points, leading to risk-return optimums around certain portfolio sizes. These optimized portfolio sizes within the group of filtered i2X startups provide the most attractive risk-return profile for investors. And only i2X makes it possible to build them in a reasonable amont of time, and with minimized operational costs.
You can learn more about the i2X investment approach when you get verfied on the system. Simply sign up and request a verification call or meeting.
Q: How does i2X guarantee high startup quality?
i2X has taken our personal experience, combined it with the latest schools of thought - from The Lean Startup to wisdom from Paul Graham, Fred Wilson and other Silicon Valley thought leaders - and turned it into the leanest, most effective startup filter system in the world. To get on i2X, a startup has to go through a three step filter system, starting with a 60 Second Video Application, followed by a in-depth registration, and ending with a personal interview. As part of this three-stage-approach, we created a new class of experts, the i2X Startup Analysts, who leverage the i2X filter methodology, and engage in 1:1 vetting sessions with entrepreneurs.
Throughout all three stages, startups are assessed on five key dimensions: the idea, the team, the traction, the network, and the deal. Together, these dimensions provide a uniquely powerful perspective on seed stage startups by understanding the market potential, the quality of the founders, the current assets and momentum, the size and power of the startups mentor, investor and partner network, and finally, the attractiveness of the deal.
Q: What kind of startups do I find on I2X?
Our regional focus is the US and Canada, Europe and Israel. Currently, most of the i2X startups are SF Bay Area, Los Angeles and New York based. All i2X startups are disruptive technology startups, mostly with web-related business models. Besides consumer facing web, mobile, gaming and SaaS, Greentech takes an increasing share in the i2X portfolio. Most i2X startups are part of an incubator like Y-Combinator, TechStars and others. You won't find linear growth companies such as film, restaurants, classic maufacturing, retail, fashion etc., unless they are highly disruptive and have a revenue potential of >$100m within 5 years.
Q: I am interested in seed stage technology investing, but have no experience in it. What now?
This is an excellent question. In the days of facebook, instagram, zynga and dozens of other billion dollar exits, more investors than ever want to join the party. And if you know how to do it, it really can be a party. But seed stage startups is one of the most complex asset classes: there are no traditional business data, no balance sheets, and not much more than some (potentially) great founders and an idea. To achieve an attractive risk-return profile with your seed stage investment strategy, you need to have a good understanding of both the math behind seed stage investments, and of the legal procedures and standards involved in convertible notes and stock issuance in this field. Our data shows that investing an a small number of seed stage startups comes very close to gambling as long as you don't have a personal, in depth understanding of the team and idea. This is why i2X is designed in a way that allows investors to spread their risk across larger numbers of startups, and achieve a much better risk-return profile. We are happy to help you better understand the logics of professional seed stage investing. The easiest way for you to get in touch is to sign up and apply for a verfication call or meeting.
Q: How can I use i2X?
It's simple: join here for free.
After signing up, you will only see qualitative startup data - to see more in-depth ratings and deal data, you will have to get verified by an i2X Investor Relations Executive due to SEC regulations. The verification takes place over the phone, skype or in person at an i2X investor event. We want to know our investors to ensure a trusted relationship between all parties - i2X has evolved from real-world investor and startup networks in Silicon Valley and New York who decided to make seed stage investments more efficient, transparent and beneficial for everyone, and we are determined to maintain this culture of trust and transparency.
The verification process is NOT an attempt to keep the i2X investor communities a closed "old boys club" as practised by other platforms, but an attempt to build a transparent investor community that embraces accountability and responsibility.
Currently, i2X is completely free of charge. We might soon introduce a small verfication fee to cover related expenses, though.
More questions? Write us at investor@i2X.co