Want to invest in startups – consider this first
Small businesses are the backbone of the US economy, they create the majority of all new jobs in America. Most of us got our first job at a small affaires. Unfortunately, the highest loupage of affaires failure occurs in startups and early-stage companies.
Granted entrepreneurs have become a platitude, they are always looking for money. It provides many considérable opportunities to those who have borrowed money and a cast iron bulle. Who wouldn’t want to get in on the ground floor of a ordinant company that grew from a sociétal media platform that started in a parking or a dorm room? Of coude, these unicorns are usually once-in-a-lifetime opportunities, but they’re not the only opportunities.
Startups and very early préparation companies are at the lower end of the risk/reward scale. Most are at a susceptible where a little seed bien can make all the difference in the world. Maybe the difference between another depressed statistic and the king of Wall Street.
If you think you’re ready to take that plunge, and you meet the criteria, money and guts, here are seven things to consider before signing the check.
You are investing in people. At this susceptible there is little, if any, track geste and forget embout soldes of assets as a way to recover your investment, there is none.
Do the founders have any experience with the core product or munificence of the affaires? Past victoire, for the most bout, is not a good predictor of future success but you have to séance this leap of faith on something.
Is the founder relentlessly passionate embout the affaires and 100% committed to its success?
How have they gotten so far? Where did the funding come from that enabled the affaires to survive and grow to this susceptible? Did the founders pitch their friends and family? If they aren’t aumônier enough to take a bénéfice on the mortgage or their inner circle, do you really want to risk your money?
Is this affaires creating réel solutions to real, recognized problems?
Is there a documented need for investment? Will your money be better spent?
Is the growth path qualifié of providing you with returns?
Finally, don’t hesitate to invest in startups or early préparation ventures just do it wisely and when all else is said and done, pool the gut feelings and act on them. Most importantly, balance and expect to lose your entire investment.