Kristjan Raude is a good case on how to work yourself into startup building, high risk investing, leading a syndicate and exit with success.
What was the moment you realized you want to be an angel investor?
My journey into angel investing felt really natural. As an entrepreneur and active marketing strategy mentor for startups over the last decade, I was working closely with teams all across Europe. I started to notice that some teams and ideas just flew higher than others, and that really got me thinking. It intrigued me enough to extend my investment focus to include startups. My thought was, “If I’m already working with them, why not invest and have some skin in the game?”
After my first few investments, I was hooked. I started reading everything I could about angel investing, even though there aren’t many great publications out there on the topic, and before I knew it, it had become almost a full-time gig with my own developed playbook.
To date, I’ve made 30 investments in early-stage companies and have led seven angel or crowdfunding investment rounds. So far, I’ve had four decent exits.
The spark that made you join EstBAN?
The main person who introduced me to angel investing and EstBAN was Madis Müür. His passion for early-stage investments and for educating new angels in the industry was truly amazing.
What’s your advice for aspiring angel investors?
If you’re thinking about getting into angel investing, my recommendation is to think big, but start small. Begin by looking at startups in an industry you’re already familiar with. Set a strict allocation limit of no more than 10% of your net worth for startups and then divide that sum into 20-30 investment tickets for diversification.
It’s a long-term game (think 5+ years), so choose your battles wisely. Most importantly, surround yourself with industry peers. Joining a group like EstBAN, for example, would be a great move.
Recent success story?
My most recent exit was with the gamification startup Adact, founded by Kalev Kärpuk. It’s a great example of the grit of a solo founder who truly made it happen. I was the EstBAN lead investor for the Latitude59 startup pitch competition, and out of more than 300 teams and ideas, we chose Adact. It turned out to be a really good choice.
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