Angel Spotlight - Luigi Iacullo
As the UNSW Founders gears up for our upcoming Angel Investor Course from May 8th to May 10th in Sydney, it's an honor to shine a spotlight on distinguished alumni like Luigi Iacullo. With a robust background in the Financial Services sector, Luigi's journey into angel investing is both a testament to his expertise and a reflection of his passion for innovation. Keep reading for this exclusive Interview unveiling the Angel Investor's Journey.
Q: Can you share your journey and experience that led you to become a involved with UNSW Founders Angel Investors Program?
My background is in Financial Services and I have always had a passion for investing. In 2015, I began to take an interest in investing directly into US Public tech stocks given the performance of technology companies, particularly FAANG stocks.
I then decided to look at Australian businesses in the tech space and invested in Atlassian after its public float. I thought it would be great to invest in other Australian technology companies at an earlier stage, pre IPO. This led me to my angel investment journey beginning in 2019 and then investing in Venture Capital Funds to gain further diversification.
I was attracted to angel investing due to the fact I was provided with the opportunity to meet people who were doing new and innovative things, and who were potentially behind companies that could influence and change a sector or market. I was inspired by various founders' passion, intellect, uniqueness and drive to build a solution to a problem.
A few years later, I wanted to continue expanding my knowledge in angel investing, which is when I enrolled in the UNSW Angel Investor Course in April 2021. After having completed the course, I learnt about the value of building networks in order to gain investment deal flow. Through these networks I invested in companies such as Cake Equity, Hullbot and Heaps Normal.
Q: What is the best piece of advice you've ever recieved and why?
‘Don’t run out of money’. As you start your journey, it’s easy to become overconfident and invest without having enough to follow-on or continue investing in the future.
Q: What's the best Angel Investing resource you come back to time and time again?
My notes from the UNSW Angel Investing course The Startup Playbook podcast and dayone.fm podcasts. In these podcast, they interview various founders, investors and industry experts.
Q: Based on your experience, how do you see the landscape of Angel Investing evolving in the next few years?
Angel investors are now more cautious than they were in 2021 and early 2022, which has been a result of the reduction in valuations of early stage companies. I believe this is likely to be the case for the next few years.
Angel investors now have more time to complete their research and due diligence. Also they are able to invest at lower company valuations, although some of the best companies with great founders are still able to command higher valuations.
There is certainly a lot less hype now compared to 2021 and angel investors are prioritising great founders and companies with good traction.
Q: What emerging trends should new Angels be aware of?
Angel investors are now able to join a variety of Syndicates with very small minimum cheque sizes.
New angel investors are more considered and discerning with their investments compared to 2021.
The Australian government is reviewing the income and assets threshold to qualify as a sophisticated investor, whereas the startup ecosystem is lobbying the government to focus on skills and experience of investors.
Q: In your opinion, how does the UNSW Founders program contribute to the overall startup ecosystem?
Within the founders program, the Angel Investor course equips new investors into the ecosystem with valuable insights and knowledge.
The overall UNSW Founders program has been integral in accelerating the startup ecosystem.
Q: What advice would you give to aspiring angels who want to start investing in startups?
1. Decide on the portion of your portfolio you would like to allocate to angel investing.
2. Only invest in companies you understand.
3. Remember that angel investors who invest early take on the highest risk, but gain the highest return.
4. Don’t be over analytical in your analysis, as you’ll end up finding reasons not to invest.
5. Start with small cheques and double down on follow-on opportunities in the companies you feel most confident in.
Q: Are there any common misconceptions about Angel Investors that you would like to address?
“Angel investing is an easy way to make money”. This is a common misconception as angel investing can be difficult, unless you have a network to gain dealflow and some operational exposure, it’s sometimes hard to access the best companies to invest in.
Angel investing is not always easy and usually requires a 10 year investment timeframe. Particularly in the early stages of investing, it’s important to network and gain knowledge from the people you’re meeting, such as founders or other investors you’re investing alongside with.
If you're interested in diving deeper into the world of angel investing like Luigi, consider exploring the Angel Investor Course offered by UNSW Founders in partnership with UNSW’s AGSM. It's an opportunity to gain valuable insights and knowledge to kickstart your journey in startup investment.