Q&A with New York Angels member, Edith Simchi-Levi
Edith Simchi-Levi has been a member of New York Angels for three years and is currently co-chair of the Israeli Investment Committee, one of four special interest groups at NYA. Her experience running companies has made her a particularly good networker, which she has leveraged for the companies in which she invests. Read her interview below to learn how the investment trends have changed over the last year and what investors and founders can do to stay on top of these trends.
What first attracted you to join a formal network for Angel Investors?
I started investing on my own and wanted to learn more and be part of a group.
What did you do before you were an investor and how has that experience shaped your own investment thesis?
I was a software developer and analyst then started a few companies in supply chain analytics, both software and consulting. This probably makes me more critical of companies that have a similar model compared to others because I know how hard it is.
What do you look for in a pitch? In a founder?
I like to be able to relate to the topic and understand its importance. I don’t invest in companies in areas that do not interest me.
How do you spot a good founder?
I like people with focus and drive. I am somewhat biased towards people with my kind of education and work background, not so much where they come from or other factors. They also need to listen and absorb feedback well.
What makes a good Angel investor?
The ideal angel investor is someone who can help find customers, partners and other investors. Sometimes they can help with technical and marketing issues but that is usually secondary.
What advice would you give a founder who is about to apply for funding at NYA?
You need to prepare for a very specific type of presentation. As part of the Israel committee, with help from other members, I have been coaching the CEOs on the pitch process and expectations and it has worked quite well.
What advice would you give to founders who have never fundraised before and do not have strong connections to Angel investors?
It is similar to any other selling strategy — you need to network as much as possible. Utilize networks that you already have such as your school or city and don’t be afraid to approach people on LinkedIn or Clubhouse. This may require some time and research to decide where to focus. You should also listen to feedback from experienced investors.
Have you noticed any investment trends happening now that the economy is opening back up?
The timeline for startups seems to be much more compressed, so investors need to react fast in order to participate in deals. There are many opportunities to invest in companies at various stages but there is not a lot of time to make the decision. Another trend is the extended use of SAFEs, which NYA does not like as they do not sufficiently protect the investors.
What’s the benefit to YOU, as an investor, of collaborating with other Angels on investments?
This is a huge benefit — not only can you learn from other’s experience but we also have different expertise that can be leveraged. This is one of the great benefits and joys of NYA.
Have you ever led a deal? If so, can you speak about your experience? What can a founder do to help facilitate a final investment decision?
I have lead a few deals. The role is to push the process by working with the founder to provide the information needed and with the interested members of NYA to make a decision. The founder needs to be consistent and straightforward so the process does not drag on too much. It is best for all sides to make the decision fast based on the best data available.
What do you think your strength is as an investor and member of the New York Angels?
My experience running companies has made me a good networker. When I talk to founders, I often try to connect them with other people who can help them. As co-chair of the Israel Committee, I have become somewhat familiar with the Israeli ecosystem in NYC and Israel.
