Investing in startups has become wildly popular in recent years because of the high returns it can reap and it also helps in diversifying one’s portfolio. With high advancements in technology and entrepreneurship, many startups are emerging with high growth potential. If you too are willing to invest in such startups then this blog is just for you. Here we will discuss how to start investing in startups, what platforms you should use, and more.
Let’s Start With Understanding What A Startup Exactly Is
Startup is a newly founded company aiming to become a successful business. It is mostly founded by a group of entrepreneurs and sometimes solopreneurs. They are generally tech-based companies but they can also be healthcare, finance, consumer goods, or any other company.
Why Should You Invest In Startups?
It is true that there are high risks in investing in startups but there are plenty of benefits as well like:
- If a startup gets successful it is easy to get high returns on your investment.
- It provides diversification in your investment portfolio
- And the best part is the opportunity to get to support innovative ideas and new technologies that can solve big problems.
Investing In Startups Through Investment Platforms
Investment platforms are a great option for someone just starting in startup investment. It provides a simplified investment process and accessibility to so many startups. Some of the well-known investment platforms are:
- Crazy Money
Crazy Money is a reputable platform to invest in new startups. You can start investing from just $500. They even have a curated range of investment opportunities, so you can easily invest in those.
It is an investment platform for investors looking to invest in early-stage companies. It has a wide range of startups from different sectors. And you can start investing in this platform with just $100.
It is the world’s first online venture capital platform and it is only for accredited investors. It too provides a curated range of startups to invest in. The amount of investment depends on the company.
You Can Invest In People You Already Know Because
There is a personal connection in a startup when you already know and have connections with the founders.
- You get the chance to invest and support your friends or family members making your bond even stronger
- You get the insider benefits of the founder’s vision, data, and other things.
So it is definitely worth investing in people you already know.
Become An Angel Investor
An Angel investor is someone who invests in early-stage companies and provides funds as well as guidance to the newly formed companies. There are many perks of becoming an angel investor, the first one being financial rewards. Second, you get to know about mind-blowing ideas and cutting-edge technology. You can invest in something you really care about and in which you have interest and experience, and then feel the joy of seeing that company grow. It also gives you peace of mind because you’re investing and supporting startups with ambitions and dreams.
Wrapping Up With Some Investing Tips
It is extremely important to do your research before investing in any startup. You should check the market size, product market fit, quality of products, and the founder’s passion for their startup. Quality of product is the most important thing in any startup, so make sure that the product is great. Also, get to know everything about the company, debts, co-founders, shareholders, IP and URLs, EVERYTHING. And lastly, if you are in contact with someone who’s into startup investing, you can ask for their advice, they’ll for sure have some informative tips to give.