Jed Ng, renowned tech operator and angel investor, sat down with NewInAsia.com. He shared his journey from building the world’s largest API marketplace to backing some of the most promising startups. Throughout his career, Ng has encountered and overcome numerous challenges in angel investing. He offers valuable insights for aspiring investors and entrepreneurs.
Highlights
From Tech Operator to Angel Investor Extraordinaire
“I’m a tech operator. I built the world’s largest API marketplace with an Andreessen Horowitz-backed startup,” Ng recounts. Reflecting on his early days in the tech world, this experience laid the foundation for his foray into angel investing. Since then, he has made a significant impact.
The Art of Investing: Focus and Strategy
Ng’s approach to investing is unconventional. Self-taught and driven by a passion for innovation, he has successfully backed two companies at the seed stage that have now achieved unicorn status. “Today, I operate my own large-scale angel network, and we’re backed by over a thousand LPs,” he reveals. His network primarily invests in B2B and software startups, focusing on the U.S. market while eyeing expansion into Europe and Asia.
“We focus on software companies at seed to series A,” Ng explains. “Moreover, we will look multi-geo in the U.S., Europe, and Asia. We look for companies that have a product in the market, some minimal traction, ideally six figures of annual revenue.” This disciplined strategy ensures that he invests in startups with strong potential for growth and success.
Hands-On Investment: A Two-Way Street
While capital is a critical component of his support, Ng emphasizes the importance of collaboration between investors and founders. “My job as an investor is to deploy capital. We also are rooting for the startups to be successful. So, to the extent that I can be helpful, we will absolutely help the companies out,” he says. “Founders should be clear and succinct about what their needs are so that I can be helpful with my network.”
One of the challenges in angel investing is maintaining a balance between providing financial support and being actively involved in the startups. Ng’s hands-on approach has proven effective. It allows him to offer more than just financial backing. His extensive network and experience provide invaluable resources to the startups he invests in.
Successes and Lessons Learned
Ng’s investment in Turing.com stands out as a testament to his keen eye for potential. “A very successful company is Turing.com. I invested at a seed stage. The company is now valued at $1.1 billion in terms of its price round. So, the company is on track to IPO and we’re looking forward to that,” he shares proudly. However, not every investment hits the mark. Ng candidly discusses ventures where the market did not evolve as anticipated. This underscores the importance of timing and market fit in successful investing. This highlights another of the challenges in angel investing: predicting market trends and ensuring the technology aligns with market needs.
Looking Ahead: Expanding Horizons
Ng is not resting on his laurels. With plans to expand his investment footprint into Europe and Asia, he continues to seek out innovative startups with the potential to disrupt industries and create lasting impact. His journey, marked by strategic investments and valuable lessons, offers a blueprint for aspiring investors and entrepreneurs alike.
