JEFF SELTZER ‒ NYA MEMBER SPOTLIGHT
In 2007, Jeff Seltzer joined New York Angels and has been a key member ever since. Jeff is known across the organization for leading deals and his strong collaboration. Jeff focuses on early stage investing in FinTech and SportsTech and additionally mentors for accelerators around the world. Jeff received a B.S. in Economics from the Wharton School of the University of Pennsylvania and a J.D. from the Georgetown University Law Center. He is the recipient of the University of Pennsylvania Alumni Award of Merit in recognition of outstanding leadership and service to Penn.
How did you meet New York Angels? Why did you choose NYA?
In 2007, I had recently gone through an IPO of a company I worked with, and was looking for the next thing. Two of my undergraduate classmates from Wharton were members of New York Angels, and they suggested I consider NYA because I like doing new things and innovative ideas. When I joined back then, there were only 35 members, but it was a highly impressive group, as they are today.
What has been your most memorable experience as a New York Angel?
What really stands out about my experience in New York Angels has been the camaraderie of our group. Everyone is very helpful with their advice, networking and collaboration. Even if it's not their deal or not their industry, everyone is very, very helpful.
What do you look for when you are investing in a company?
You certainly hope the company has a good chance to exit but it's of course much more than that. Some people say it's all about the product, and others say it's all about the team, but I say, "Why can't you have both the product and team?" Is the product innovative? Is their management team extremely strong? There are a lot of companies that look alike in crowded fields. I like to look at companies that really seem to be different, and that are competing in a space that isn't extremely competitive.
What do founders like most about working with you?
I have been a deal lead many times. I take it as a great responsibility both to the members of New York Angels and to the company. For the company, they have limited resources, and they're trying to secure their investment and move on with growing their business. I work to make the process as smooth as possible. On the other side, for the people investing money, they're going to be relying to some degree on your work as a deal lead. We always tell them to make their own decisions, and I'm emphatic about that, but there is still some reliance on the deal team. Founders may think it is challenging process because we are extremely diligent and detailed, but at the end of the day, we move fairly quickly, which is what founders need to keep their focus on the business. A good diligence process will help the founders think about their business in a different and sharper way and help prepare them for their next round. We help them get where they need to be.
What differentiates companies that you see at Screening versus those who make it through Investment?
New York Angels cast a very wide net. Liz and the Screening Committee do a great job of winnowing down the companies to a more manageable number for members to properly screen. The companies that are coming out of Screening and into Diligence generally have a great team and interesting product, and they have traction. They've caught the interest of people. It is really just a numbers game - a very small amount of companies that apply for screening will make it to investment but that is going to be the same for us or VCs.
What advice would you give founders who are starting to fundraise?
Fundraising is extremely hard. A lot of people come to me for advice as this is their first start up. I tell them to read two books: Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups and The Startup Checklist. They are two great books. Even if you're not an investor, David Rose helps put you in the mindset of someone who is an early-stage investor, so as a founder you will learn what they're looking for when they decide to invest. I give them this homework and send them off. I tell them how hard it is to raise money to start a company. Then, I tell them if they want to come talk to me again, read those two books. Some I never hear from again. A few have come back and said, "I'm really thankful because this isn't for me. I didn't realize how hard it is." Too many people think it's easy, they look at Shark Tank, or they see people making billions of dollars, and the reality is: it is just extremely hard. I want to make sure they understand that and that they're prepared for that journey.
When you look at your past investments, what do you think is most critical for founders to be able to deliver a successful exit?
Founders must be able to scale quickly. When I started angel investing, the average exit was 5 to 7 years away, and now it's 10+ years. The ones who do best are the ones who can pick up the quickest traction and who are able to get out there with a very good product. It doesn't necessarily have to be a perfect product in the beginning. Sometimes people become so hung up on the perfect product as opposed to a sellable, functional product, and you can't lose that time. You have to get the product out there, be selling it, and move really quickly.
Do you have any other advice for founders that would be helpful?
Founders often come to me for advice for setting up boards. First, they need to define what they really need and understand there are two types of boards- one for advisors and one for directors. Most are really looking for a certain functional expertise at a high level- marketing, operations, scaling. If that is all they need that person should be on the advisory board. Often, they say they are looking for a board director, but they don't realize that an actual director has governance responsibility and will become involved in most critical decisions like setting the budget, future financings, granting stock options. So, when you're setting up your boards, you need to carefully evaluate your needs to determine the composition of your advisory board compared to your board of directors.
Do you have any other advice for members that would be helpful?
I would encourage everyone to be a deal lead at some point. If you are participating in the diligence process as a member it may seem like leading a deal is intuitive. It's not as intuitive as it seems. It's very hard to be a deal lead, so we need the cooperation of all the members to help push forward to get the right outcome for the company, as well as for the potential NYA investors in the round. If it seems intimidating, a great way to start is by co-leading a deal or volunteering to help out in some way on a deal to gain expertise and see how a deal is put together.
