One early investment I passed on that I regret

What’s one early investment I passed on that I regret, and what did it teach me?

In 2021, a US-based startup was developing avatar tech with a somewhat experienced team. I passed on investing because I felt there was no real business in B2B avatar services.

Twelve months later, the company was acquired by a tech giant with an 8X multiple of the valuation that I could have invested in.

What did I learn?

– I quickly dismissed the opportunity for their product in the market. It’s too small, I thought. With further analysis, I could have understood the underlying potential and the appetite of tech giants to do M&A in the space.

– I should have consulted other angel investors and VCs who were investing in the round. Back then, I felt like I needed to develop a conviction to invest on my own and not be swayed by information from other investors. It’s another thing to be driven by FOMO to invest versus becoming more educated by co-investors about opportunities and risks in shared deals.