Episode 559: James Beshara: Top #2 Angel Investor Shares Why He Backs The Founder Not The Business
6/2/20261 hr 26 min
When you want to understand someone's success, you look at what they built. The company, the exit, the valuation. But James Beshara says you are looking at the wrong thing. You are studying the fruit when the real story is in the roots. James has built three separate companies to nine-figure valuations before 40, ranks as the top #2 angel investor on AngelList, and has made over 100 startup bets. He is also the founder of Magic Mind and after 14 years of investing and 18 years of building companies, he has learned that the founders who get funded are not the ones with the best pitch deck. In this episode of Habits and Hustle, James shares why he backs the founder and not the business, what he looks for in the first 7 minutes of meeting someone, and why a product that is merely liked will always lose to one that is loved. He also breaks down the science behind Magic Mind, why your coffee habit may be working against you, and the morning philosophy practice that shapes how he makes every decision. If you have ever wondered what investors are really evaluating when they decide to bet on you, this conversation gives you the answer, and it starts with looking at the roots. What's Discussed: (02:53) The roots versus fruits reframe and why copying success usually backfires. (10:14) The 7-minute window that tells James whether he wants to work with a founder. (16:41) Why investors back the founder, not the business, and the 40% likability edge. (25:33) Magic Mind: Why caffeine shuts off your fatigue signal instead of giving you energy. (45:30) The Bezos rule: innovators must be willing to be misunderstood. (1:07:51) What selling a company for less than he raised actually taught him. (1:17:59) Why a product that people buy when it is “ugly” is the only kind worth scaling. (1:28:55) Why running toward failure is how you avoid the failure that ends you. Thank You to Our Sponsors! AirDoctor: Head to AirDoctorPro.com and use promo code HUSTLE to get up to $300 OFF today! AirDoctor comes with a 30-day money back guarantee, plus a 3-year warranty (an $84 value) FREE! Kion: Visit getkion.com/habits for 20% OFF Momentous: Ready to try supplements that actually do what they claim? Head to livemomentous.com and use code JEN for 35% OFF your first subscription. Therasage: Visit Therasage.com and use code JEN to get 15% OFF your order. Your skin deserves this level of care. Magic Mind: Head over to magicmind.com/jen and use code JEN at checkout. Prolon: Prolon is offering listeners 30% OFF sitewide plus a $40 bonus gift when you subscribe to their 5-Day Program! Just visit prolonlife.com/JENNIFERCOHEN and use the code JENNIFERCOHEN to claim your discount and your bonus gift. Rho Nutrition: Go to RhoNutrition.com and try Rho's Liposomal Glutathione. Use code JEN20 for 20% OFF sitewide. Manna Vitality: Try it now by using the code Jennifer20 at mannavitality.com Find more from Jen Cohen: Website: jennifercohen.com Instagram: @therealjencohen Books: jennifercohen.com/books Speaking: jennifercohen.com/speaking-engagements Find more from James Beshara: Website: jjbeshara.com Instagram: @jamesjbeshara Linkedin: James Beshara X: @jamesbeshara Find more from James’s Yoga For Your Intellect Podcast: Website: yfyi.co Instagram: @yogaforyourintellect YouTube: Yoga For Your Intellect Podcast Spotify: YFYI - Yoga For Your Intellect Find more from Magic Mind: Website: magicmind.com YouTube: Magic Mind Instagram: @magicmind Podcast: Magic Minds Find more from APT AI Career Test: Website: tryapt.ai Instagram: @apt_ai Find more from James’s Passions: Open State Music: @openstate_ Daily Vedantic: @the_daily_vedantic
Clips
Transcript preview
First 90 secondsJames Beshara· Guest0:00
[upbeat music] Hi, guys. It's Tony Robbins. You're listening to Habits and Hustle. Crush it.
Jennifer Cohen· Host0:04
Okay, you guys. We have a big treat today. We have one of the most fantastic founders, serial entrepreneurs on the planet, and not just my opinion, but o- but actually the opinion of many, because we have James Beshara. Beshara? Did I say that right?
James Beshara· Guest0:21
Either works. Hon- it's, so the Americanized version is Beshara.
Jennifer Cohen· Host0:25
Beshara.
James Beshara· Guest0:25
The Lebanese version, my family's Lebanese, Beshara. But our family's like, "We just go with the flow." So Beshara works.
Jennifer Cohen· Host0:31
That works? Okay. James Beshara or Beshara. [laughs] He is the founder of Magic Mind, my- one of my favorite, favorite habits, daily rituals of, of, of all time. But also, I just found out that James is also considered the number two most, uh, best, uh, angel investor on the planet by, of course, Angie's List you said, said that?
James Beshara· Guest0:54
AngelList, yeah.
Jennifer Cohen· Host0:56
AngelList.
James Beshara· Guest0:56
AngelList is the biggest- Oh, AngelList.
Jennifer Cohen· Host0:57
And there's also an Angie List ...
James Beshara· Guest0:59
platform. There is. Angie's List. Uh, if I was a home cleaner, I hope to God- [laughs] ... I'd be in the top three. Um, I would, I'd work my ass off to be in the top three. But, uh- But on AngelList ... alas, I went the angel investing route instead. And, uh, through a lot of, honestly, through, Jan, through a lot of failure and in building things, then learning what not to do, it got me into the circles of really great founders and started to make a couple investments. And then I was like, "I think I could do a few more," and it started to take off from there.
Jennifer Cohen· Host1:28
But wait a second. So you