> For the complete documentation index, see [llms.txt](https://michaeltefula.gitbook.io/angel-investing/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://michaeltefula.gitbook.io/angel-investing/investment-thesis/the-thesis.md).

# The Thesis

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**Invest in startups that advance human, financial, or natural capital, at scale.**
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### **Tactical focus** 

$15-20k cheques in $500k-$2m pre-seed/seed rounds addressing one or a mix of any of the following areas.

> I'll be focussed on startups that are working on labour productivity tools, more equitable financial systems, as well as solutions that make decarbonisation a no-brainer. 

| 🧠 Human Capital                                              | 💸 Financial Capital                                                         | 🌍 Natural Capital                                                     |
| ------------------------------------------------------------- | ---------------------------------------------------------------------------- | ---------------------------------------------------------------------- |
| **Productivity:** to augment and leverage human capabilities. | **Fairness:** to facilitate a more equitable and impactful financial system. | **Sustainability:** to make decarbonisation compelling and profitable. |

### **Why these areas matter** 

Each component in the above table is the flip-side of a problem which if solved (even if partially in some small way), could result in significant financial and societal gains. 

These problems are summarised in the following interactive tab.

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{% tab title="Productivity" %}

<div align="center"><img src="/files/N66kiPFm3DaLKeSN2H4w" alt="G7 Labour Productivity Growth (10yr rolling average, % y/y) [source: capitaleconomics.com]"></div>

Labour productivity growth has been in [structural decline since the 1970s](https://www.capitaleconomics.com/blog/productivity-holds-the-key-to-the-next-decade/) for a variety of reasons. Technology has a role to play in reversing this trend profitably, and with gains accruing to [society](https://michaeltefula.gitbook.io/angel-investing/notes/rough-notes#labour-productivity-growth-vs-capital-productivity-growth), too.
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{% tab title="Fairness" %}
![\[Source: WSJ\] / Original data from https://www.nber.org/papers/w20733](/files/wM84uy5kKaaMJ9SYoYEa)

Financial capital gains are concentrated in the top 1% and [most gains in wealth](https://www.resolutionfoundation.org/app/uploads/2020/12/The-UKs-wealth-distribution.pdf) come from asset ownership. More equitable financial platforms can alleviate this.
{% endtab %}

{% tab title="Sustainability" %}
![Source: The Atlantic, Science & ClimateProgress.org](/files/OeYhgor9WxwVZCe7B85j)

The [hockey-stick](https://www.theatlantic.com/technology/archive/2013/05/the-hockey-stick-the-most-controversial-chart-in-science-explained/275753/) rise in the mean global temperature due to CO2 emissions is an extinction-level threat. Sustainability, adaptation, and mitigation efforts are urgently required to avert disaster.
{% endtab %}
{% endtabs %}

> **Tremendous challenges present tremendous opportunity to profitably unlock value while advancing society as a whole.**