Tue, 9 August 2022
Startup Boards -- Foundation for Startup Investing
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Startup investing is a risky business. Not all the investments will work out.
Know your risk tolerance and how much risk you want to take.
Most investors allocate 3 to 10 percent of their investments into startup investing. Allocate a specific amount of funding for your investments.
You need to invest across ten deals to gain diversification, so take your funds allocation and set an amount or range for each investment.
Follow-on funding is also a factor, so be prepared to invest again in many of those companies. Consider taking your allocation per deal and dividing it into two -- one for the upfront investment and the other for a follow-on funding.
Consider what is important to you and invest in companies that align with your goals and vision.
You may want to support your community or industry. You may want to foster diversity or create jobs. Or you may want to mentor entrepreneurs or keep your skills up to date.
In the end, it’s the “Why” you invested that will matter the most.
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