Lessons Illustrated: Overestimation of Maturity by Investor Results in Overlooked Billion-Dollar Venture by Youthful Innovators
A Tale of Missed Opportunity: Lessons Learned from Passing on Scale AI
Immad Akhund, a seasoned angel investor since 2016, took a gamble he regrets – turning down a chance to invest in Scale AI, now valued at a staggering 12.5 billion euros (14 billion dollars). The episode unfolded in a 2021 funding round, proving to be a costly misstep for Akhund.
"I remember thinking, 'This is a good idea, but those kids are too green,'" he admitted in a recent episode of 'Twenty Minute VC' podcast. The young guns behind Scale AI, about 19 and 20, were the reason Akhund hesitated. He presumed he could run the show better, not comprehending how these dynamic duo would steer the company[1].
In retrospect, Akhund concedes, "I was dead wrong." He's since backed over 350 startups during their early stages, including Rappi, Airtable, Rippling, Decagon, and Etched.
Embrace the Power of Youth
Youth - a seemingly inconsequential factor - can prove mighty in the business world, as Akhund discovered. "You have to let go of your preconceptions and trust: 'This kid can lead a powerful organization,'" he mused.
The serial entrepreneur's fumble is a cautionary tale to not underestimate young founders. Age, it seems, should not be a ticking time bomb, but a testament to youthful enthusiasm and the power to innovate[2].
Akhund's philanthropic investments revolve around the inevitable ideas destined to blossom into 10-billion-dollar companies[3].
Check the Ego at the Door
As an investor, ego can be a dangerous adversary. "I used to feel the need to bring my ideas into the mix with startups," Akhund shared. But founders, particularly young ones, often nod in agreement, only to discover that his thoughts, while valuable, weren't theirs. Akhund learned that nurturing founders and their ideas should be his priority, not his own[2].
Investing in the Long Run
Akhund appreciates serial founders over newcomers, particularly those with a hint of self-doubt. "I'm partial to serial founders," he confessed. Experienced entrepreneurs understand the hurdles and continue to press on, proving their commitment[2].
Investors, according to Akhund, should cultivate a diverse portfolio by making at least 20 to 30 investments. This strategy helps gamers surge in the competitive startup arena, as Akhund learned the hard way with Scale AI[3].
[1] Source: Twenty Minute VC[2] Source: TechCrunch[3] Source: Forbes
- "What if I had trusted those young founders when given the chance to invest in Scale AI? A reminder from Immad Akhund, the investor who missed out on a potential 14 billion dollar company, that age should not be underestimated in the world of business and technology."
- "In the realm of investing, letting go of one's ego and nurturing the ideas of founders, particularly the young ones, is crucial. As seen in Akhund's case with Scale AI, ideas from experienced serial founders are often more valuable when they are left to grow organically rather than being overshadowed by an investor's input."
