Cintia Mano, CEO at COREangels shares her journey from corporate executive to angel investor. Driven by a passion for innovation, she transitioned from co-founding a startup to mentoring and investing in early-stage companies. In this interview, we discussed the challenges and opportunities in the Portuguese market, investment criteria, and vision for the future of venture capital.
Background and Inspiration:
What inspired you to transit from a corporate career to the world of startups and venture capital and how did your experiences at corporations shape your approach to managing and investing in startups?
— The first transition was from corporate to founder. I left the best company I worked for to co-found a startup. After some years I started mentoring other startups and more years after I decided to start investing in startups. My experience in corporations brought me a lot of process efficiency, continuous improvement and planning approach. It helps if you know to combine them with the level of improvising, fast learning, testing and flexibility that a startup demands.
How do you keep yourself updated with the latest trends and developments in the startup and venture capital world?
— I have a few sources that I constantly access (podcasts and sites) plus my LinkedIn feed. People tend to think of LinkedIn only to write, advertise, and build awareness or your company or personal brand. But the truth is that if you build a good network there, you will access interesting content and can connect with insightful people. Then, you learn not only from who is telling the stories (media) but directly from the ones making it happen.
Investments and returns:
What criteria do you consider most crucial when evaluating early-stage startups for investment?
— When evaluating early-stage startups for potential investment, there are several critical criteria we focus on. Firstly, we examine the problem the startup is addressing and the market relevance and size. It’s important to ensure that the problem is significant and that there is a substantial market opportunity now and in the foreseeable future. Additionally, we analyze emerging trends to gauge the startup’s potential for growth and adaptability. Another crucial factor is the team behind the startup. We look for a team that demonstrates dedication, possesses a diverse set of skills, and has the ambition to drive the project forward. Their ability to be flexible and adapt to changing circumstances is also vital, as the startup journey often requires pivoting and evolving strategies.
How do you balance the need for financial returns with the desire to support innovative but risky ventures?
— Balancing financial returns with supporting innovative but risky ventures is indeed a challenging aspect of angel investing. As angel investors, we primarily aim to achieve financial returns that justify our current involvement with startups. This long-term perspective allows us to endure the inherent risks associated with early-stage ventures. Investing in a portfolio of startups helps us achieve both goals. On one hand, we de-risk the investment when we invest in many startups. On the other hand, when we invest together with other “angels”, it is easier to support the ventures we invest in, as we have a group of investors with a diverse background and experience.
Ecosystem:
What are the biggest challenges currently facing early-stage startups in Portugal?
— One of the primary issues is the lack of capital. Securing sufficient funding to launch and scale their operations is often a major hurdle for startups. This scarcity of capital can hinder their ability to develop their products or services and expand their market presence.
What unique opportunities does the Portuguese startup ecosystem offer to both local and international investors?
— Good level of education, and the ecosystem evolving in the past 5 years, attracting people from many countries. Some bring technical expertise, others bring business experience and others — money to invest.
Are there any specific policy changes you would advocate for to boost the ecosystem here?
— We need to become competitive in the incentives to early stage investors. I mean, really early stages, like us, “angels”. We have little financial incentives and we are taking the bigger risks in the chain.
Trends:
What innovations are you most excited about that are coming out of the Portuguese startup scene?
— Food sector is bursting with possibilities, spanning from advancements in production processes to the development of alternative food products. For example, startups are exploring new and more sustainable methods of growing and processing food, which can significantly reduce environmental impact and increase efficiency. Additionally, there is an interest in creating alternative food sources, such as plant-based proteins and lab-grown meats, which cater to the increasing demand for healthier and more sustainable food options. I believe we are just at the beginning of this journey, and there is a potential for these innovations to revolutionize how we produce and consume food on a global scale.
How do you foresee the role of venture capital evolving in the next five years, especially in the context of early-stage investments?
— When it comes to “angels” we see the need to become more professional. Poor experience as a solo angel is making people look for more structured alternatives as angel funds like ours. Also a trend in segmenting, investing in industry-focused thesis and continue the trend of evaluating deals outside your country, doing more cross borders investments, building partnerships with investors from other places
What personal qualities do you believe are essential for success in the startup and investment sectors?
— Success in the startup and investment sectors requires a unique set of personal qualities. Drive is essential; individuals must have the inner motivation and determination to push through challenges and stay committed to their goals. A strong focus on results is also crucial, as achieving tangible outcomes is the ultimate measure of success in these fields. Having a straightforward mindset helps in making clear and effective decisions, while ambition fuels the pursuit of bigger and bolder objectives. Lastly, a sense of ownership is vital. Individuals must take full responsibility for their actions and decisions, demonstrating accountability and a proactive approach to overcoming obstacles and seizing opportunities.
What advice would you give to entrepreneurs looking to launch a startup in Portugal?
— Study the market. Not only the legal framework, the bureaucracy. But try to speak with as many local players as you can. Feel the temperature, understand how people behave and like to conduct business conversations. In the end people are so different, and they are the ones making the decisions at least until now.