To cultivate a healthy and vibrant Hong Kong startups community, we not only need kick-ass founders, we also need investors who get what startups are all about. Home to 96 billionaires, Hong Kong has no shortage of funding. Unfortunately, most of the investors come from traditional industries and often investing in startups the wrong way. In this video, you will learn: Why is it not just about the money? Why should you invest in startup? How to position and brand yourself as an angel investor How to build up your deal flow? How to evaluate a startup? What is a SAFE and how to invest? What to do or NOT to do after an investment? Up your game as an angel investor. Adapt the right mindset and build an effective investment strategy tailored to your expertise. Watch this video and check our

1. Startup Investing 101 for
Angels
Edith Yeung
July 2021

2. Edith Yeung
- General partner at Race Capital
- Advisor at 500 Startups
- Author and creator of the China Internet Report
- Invested in over 70 startups including Agora.io,
Solana, Lightyear/Stellar (valued $1.2B), Silk Labs
(acquired by Apple), Chirp (acquired by Apple),
Fleksy (acquired by Pinterest), Human (acquired by
Mapbox), AISense, and many more.
- General manager at Dolphin Browser, a Sequoia-
backed mobile browser with over 150 million installs
worldwide.
- Worked with many enterprise software companies
such as Siebel, Oracle, AT&T Wireless & Autodesk.
- Frequently speaker at Berkeley and Stanford and
commentator on BBC, CNBC, Wall Street Journal,
Bloomberg, SCMP, Techcrunch, etc.

3. STARTUP
INVESTING

4. Source: Visual Capitalist
7 out of 10 World’s Largest Companies are Software Companies
Apple, Alphabet, Facebook, Microsoft, Amazon, Alibaba,
Tencent and More to Come!

5. 7 out of 10 World’s Largest Companies are Software Companies
Apple, Alphabet, Facebook, Microsoft, Amazon, Alibaba,
Tencent and More to Come!

6. Source: seasia.co

7. Source: FoundersHK
Hong Kong is Home to Seven Unicorns:
WeLab, LalaMove, GoGoX, Klon, Animoca Brands, Amber, FTX

8. Source: FoundersHK
Top 10 Most Funded Startups in Hong Kong in 2020-2021
Lalamove, Klook and WeLab are the top 3 Most Funded Startups
Name Description Vertical
Total Funding
(in USD)
Founder Investors
Lalamove
Lalamove is a logistics company that
provides on-demand and same-day
delivery services.
Logistics $2.5B Chow Shing Yuk
Tiger Fund, Boyu Capital, Hillhouse Capital, D1
Capital Patners, Vitruvian Partners, Sequoia
China, Shunwei, MindWorks, Crylstal Stream
Capital, Asia Plus, Sirius Ventures Partners, Black
Klook
Klook is a travel and leisure booking
platform designed to connect travelers
with experiences and attractions.
Travel $721.5M Ethan Lin
Goldman Sachs, Sequoia Capital China, Matrix
Partners, Softbank Vision, Welight Capital, Boyu
Capital, Aspex Management, Matrix Partners
China, TCV, OurCrowd, China Capital Growth,
WeLab
WeLab is a Hong Kong-based fintech
company offering virtual banking and
consumer financing solutions.
Fintech $581M Simon Loong
Sequoia Capital China, International Finance
Corp, Credit Suisse, ICONIQ Capital, Lakestar,
Access Industries, Palm Drive Capital, Yuri
Milner, Alibaba Entrepreneurs Fund, Guangdong
Airwallex
Airwallex is a financial services platform
committed to building global financial
infrastructure to scale the digital
economy.
Fintech $402.7M Jack Zhang
Sequoia Capital China, Tencent Holdings,
Salesforce Ventures, Horizon Ventures, Hillhouse
Capital Group, Gobi Partners, DST Global,
Square Peg Capital, Mastercard, Mastercard
Beiwanglu Beiwanglu is a new payment company. Fintech $330M N/A LeafHouse Financial
AMTD Digital
AMTD Digital is the integrated digital
solutions platform of AMTD Group, an
Asian financial services centric
conglomerate. Headquartered in
Fintech $285M N/A
Infinity Power Investments, Greater Bay Area
Homeland Development Fund, Ariana Capital
Investment, Vision Knight Capital, Value Partners,
Maoyan
Futu Holdings
Futu Holdings offers an online
brokerage platform that enables
individual investors to trade in listed
stocks.
Fintech $285M Leaf Li
Sequoia Capital China, Tencent Holdings, Matrix
Partners China, General Atlantic
GoGoX
GoGoX is an app-based platform
providing delivery service for different
countries in Asia.
Logistics $276M Steven Lam
Cyberport, Renren, Alibaba Entrepreneurs Fund,
New Horizon Capital, 58 Daojia, Qianhai Fund of
Funds, Cainiao Logistics, Innovision Capital,
Russia-China Investment Fund
Chayora
Chayora is an infrastructure developer
based in Hong Kong with a focus on
building Data Centre platforms in China.
Enterprise
Infrastructure
$253M Oliver Jones Actis, Standard Chartered Bank

9. Source: SCMP
In 2020, One-Third of Li Ka-shing's Wealth Is an
$11 Billion Zoom Stake

14. I love yo
u
Investors!

23. 10 Steps to
Startup
Investing
For
Angels

24. • Startup
founders
• Startup CEOs
• Lawyers
• Startup
founders
• Lead Investors
• Lawyers
• Startups
founders
• Investors
Deal
Sourcing
Deal Making
Portfolio
Management
Exits
Startup Investment Life Cycle

25. Step One – Develop Your Investment Thesis

26. 10 Questions All Angel Investors Should Ask
1. Why do you want to invest in startups and why
now?
2. Do you want to invest in:
– Stages
– Locations
– Sectors
3. How many investments you want to make per
year?
4. What is your average check size?
5. How soon do you want return?
6. What is your expected return?
7. Do you want to be a professional investor or an
angel investor?
8. What make you different and unique compared
to all the other investors?
9. How much time are you willing to invest?
10. Do you have any special or proprietary deal
sources?

27. Step Two – Develop Your Investor Persona

28. Step Two – Branding 101 for Investors
• What is your unique value position?
• Are you a professional investor or an angel?
• Why you:
–Background (your story)
–Track records (investment return, exits)
–Special network (schools, companies or markets)
–Special access (customers and partners)
–Special knowledge (government policy)
• Who are your team members (special partners and advisors)

30. Edith Yeung
- General partner at Race Capital
- Advisor at 500 Startups
- Author and creator of the China Internet Report
- Invested in over 70 startups including Agora.io,
Solana, Lightyear/Stellar (valued $1.2B), Silk Labs
(acquired by Apple), Chirp (acquired by Apple),
Fleksy (acquired by Pinterest), Human (acquired by
Mapbox), AISense, and many more.
- General manager at Dolphin Browser, a Sequoia-
backed mobile browser with over 150 million installs
worldwide.
- Worked with many enterprise software companies
such as Siebel, Oracle, AT&T Wireless & Autodesk.
- Frequently speaker at Berkeley and Stanford and
commentator on BBC, CNBC, Wall Street Journal,
Bloomberg, SCMP, Techcrunch, etc.

31. • Linkedin Profile (https://www.linkedin.com/in/edithyeung/)
• AngelList Profile (https://angel.co/p/edithyeung)
• Crunchbase (https://www.crunchbase.com/person/edith-yeung)
• Twitter (https://twitter.com/edithyeung)
• YouTube (https://www.youtube.com/channel/
UCX0NLSdOHX3e6uXBVCYsdow)
• Your own website (https://race.capital/)
• Your own blog (https://medium.com/racecapital)
Online Branding 101 for Angel Investors

32. Step Three – Become a True Domain Expert

33. Stop Being a Buzzword Investor

35. Step Four – Who Are Your Friends?

37. Events Media
Investors
Network
Content
Industry
Network
Research
Accelerator
School
Network
Startup Deal Flow Framework

40. Step Five - Build Your Own Circle to Trust

42. Deal Flow <> Access or Allocation

43. • Founder
• Traction
• Stage
• Location
• Valuation
• Industry
Step Six - How to Evaluate a Startup

44. • What: Next generation car service mobile app
• Founders: Joe has previous exits, but has no experience with
car service business
• Traction:
–Website reserved
–iPhone app development in progress. Demo coming soon
–Provisional patent filed
–Got 15 customers
Should I Invest in This?

45. Source: https://techcrunch.com/gallery/here-is-ubers-first-pitch-deck/

46. Source: https://techcrunch.com/gallery/here-is-ubers-first-pitch-deck/

47. Traction, traction, traction
Revenue
# of Downloads
# of MAU / DAU
Major Customers or
Partnerships
Product Demo
Market Size
Pain Point
Product
Team (including advisors or
early investors)
Technology / IP
Business model
Competition
Comparables
Market trends
Government regulations
@edithyeung
Ask and Understand …

48. Step Seven - How to Evaluate a Founder

49. Attitude
Perseverance
Mission driven
Vision driven
Relationship with money
Honesty
Coachable or not
Leader or follower
Listener or talker
Competence
Credibility
Focused
Risk taker
Curiosity
Realistic
Optimist
Energy giver or taker
Brave

51. Step Eight – Be a Good Investor - Act Fast. Be
Decisive. Say No Fast and Often

54. Step Nine – Startup Investment Protocol Silicon
Valley

55. Majority of Early and Seed Stage Investments Are
Done Via SAFE (Simple Agreement for Future Equity)
Source: https://www.ycombinator.com/documents/

56. 500 Startups KISS (Keep it Simple Stupid)
Financing Documents
Source: https://www.cooleygo.com/documents/kiss-convertible-debt-equity-agreements/

57. Majority of Early and Seed Stage Investments Are
Done Via SAFE - Simple Agreement for Future Equity
Source: seasia.co

58. AngelList Syndicate
Source: https://www.angellist.com/

59. • Startup
founders
• Startup CEOs
• Lawyers
• Startup
founders
• Lead Investors
• Lawyers
• Startups
founders
• Investors
Deal
Sourcing
Deal Making
Portfolio
Management
Exits
Startup Investment Life Cycle

60. Step Ten – Don’t Be Their Parents!

62. Dos
Ask for quarterly updates
Offer help a founder asks you
Make double opt-in intros to:
- Potential hires
- Potential customers
- Downstream investors
Don’ts:
Make random intros
Offer suggestions to change
company or product direction
Weekly check in (too much!)
Share company information or
update to outside without
founders’ permission
Dos and Don'ts After an Investment

63. Startup Investing future is really bright…

64. • Follow me on Twitter @edithyeung
• Join my weekly funding newsletter https://
www.silicon.news/
• Apply to FoundersHK Demo Day and join our
investor network https://www.foundershk.com/
accelerator
Want more?