Oct 31, 2019
Figure out what you want to invest in then look for resources to help
Today, we’ll talk about investing in startups
Should you invest in startups?
Startups are very risky and it’s a lot harder than it looks.
If you have already invested in mutual funds, index funds, stocks, bonds, real estate etc. then you may want to consider investing in startups through either funds or directly in startups.
How much should you invest in startups?
- Invest no more than 3% of your discretionary income. There are many good deals out there but for the most part the investment is illiquid for a long time.
Where do you find deals?
- There are many sources including angel groups, networks, syndicates, and MicroVC funds that let you invest directly in the startup as well as the fund.
Should you invest alone or in a group?
- This depends on your investing style. A group can give you access to more deal-flow and due diligence support. On the other hand the group may pursue deals you are not interested in and vice versa.
How to get started?
- Figure out what you want to invest in and then ask what resources you need to do so successfully. Do you need help with finding the deals, due diligence, or negotiating the terms. If so, then seek investors and groups that can help you achieve your goal. Don’t join groups because they appear to be fun and make investing look easy.
Investing in startups takes time but can be both challenging and rewarding.
Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding.
Let’s go startup something today!