While startup investing is gaining traction among retail investors thanks to the emergence of affordable and user-friendly crowdfunding platforms such as StartEngine and Wefunder, average investors often fail to consider the role of seed investors behind a startup's success.
In a world where around 70% of startups fail, San Francisco-based angel investor Chris Howard successfully backed several high-profile startups such as Convoy, Flexport Inc. and Figma. He was listed on the Forbes Midas Seed List of the world's best early-stage investors this year.
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Humble Beginnings
Howard didn't achieve success overnight. He started his professional career as a marketing executive. During his tenure, he worked for renowned brands such as Lexus, New Balance, and Gear. After the marketing agency was then acquired by Overstock, Howard went to business school and switched his career to startup investing. He earned a master’s of business administration from the Michael G. Foster School of Business at the University of Washington.
His first exposure to the venture capital world was when he went to work for the e-commerce company Gear.com, which specialized in the sale of sporting equipment. During his tenure, Overstock took over the startup.
Despite his no-tech background, Howard secured a job at Ignition Partners, an early-stage venture capital fund with approximately $2 billion in assets under management.
"It was really challenging for me to go down that path because I hadn't been at Amazon or Microsoft — traditionally people entering venture had that sort of background," Howard said in a Forbes interview. "The secret ingredient was understanding the customer or what makes the product special and the same principles apply to shipping containers or New Balance shoes."
Howard is a prime example of success because of his sheer passion rather than theoretical intellect, and despite having a formal tech education, the budding venture capitalist managed to secure a position. John Connors, the managing partner at Ignition Partners and Howard's former boss, said, "There are just not that many spots in the venture world, and Chris was just relentless about getting onboard."
During his tenure at Ignition Partners, Howard kicked off a program that focused on providing seed capital to early-stage startups. He rose to the challenge and found several businesses looking for Series A investors, signing contracts with PagerDuty, Hipmunk and Kong Co.
Howard's seven-year journey at Ignition Partners allowed him to make some influential friends as well. He is reportedly close pals with OpenAI Co-Founder and CEO Sam Altman and Y Combinator Co-Founder Paul Graham. He is also friends with venture capitalist Ron Conway, who is often regarded as one of Silicon Valley's "super angels."
"I've been one of Chris's biggest fans for a long time. Chris and I share the same philosophy of always putting the founder first," Conway stated while describing his relationship with Howard.
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Fuel Capital: The Rise Of A Seed Investment Powerhouse
After seven years at Ignition Partners, Howard resigned from his position as principal at the Washington-based venture fund to start his own. Founded in 2013 by Howard and partners Jamie Viggiano and Leah Solivan, Fuel Capital has garnered a reputation for its unique approach to early-stage investing. Fuel Capital, a leading venture capital firm, became the platform for Howard’s ascension to the ranks of being among the world’s best seed investors.
Fuel Capital distinguishes itself by providing capital to startups and offering strategic guidance and hands-on support throughout their journey. This collaborative approach has been instrumental in helping startups navigate the complexities of scaling their businesses, setting them up for long-term success.
Howard’s investment philosophy centers on identifying exceptional entrepreneurs with compelling visions and disruptive ideas. By leveraging his extensive network and expertise, he has been able to identify promising startups at their earliest stages and support them in realizing their full potential.
Key Investments And Success Stories
Howard’s portfolio boasts an impressive list of successful investments. Fuel Capital’s early-stage investments in companies such as Flexport Inc., Convoy and Lattice have paid off handsomely, catapulting the firm to the forefront of the venture capital landscape. Howard's angel investing strategy is based on developing a friendship with founders and CEOs.
"If you help founders along the way with raising money, building a deck, making introductions but then go deep on things like marketing it means that they tell their friends," Howard said.
His investment in the human resources platform Lattice stems from his friendship with CEO Jack Altman's brother Sam Altman. "He believed in me very early and when I started Lattice, he was my very first investor," Jack Altman stated. "You have no doubt that Chris is on your side."
Howard’s ability to identify trends and disruptors in emerging markets should allow him to persevere despite the challenging economic conditions and competitive startup industry. Howard considers marketing to be his "secret sauce," which should allow him to continue adding value to such early-stage startups.
Investing in startups
Thanks to changes in federal law, you no longer have to be a venture capitalist to invest in startups. In fact, anyone can invest in startups through equity crowdfunding. For example, Rayven is a startup setting out to revolutionize the real estate landscape by allowing anyone to invest in net zero real estate.
See more on startup investing from Benzinga.
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