Investing in startups is often thought of as being in the realm of the whales. Those so-called big investors and venture capitalists who help startups rise with the promise of even more wealth.
The reality is that anyone can invest in a startup they believe in and can reap the rewards if the business takes off. Everyone wishes that they were on the ground floor investing with companies like Facebook, Instagram and Google. Even a few thousand dollar investment would be worth nearly a million dollars today.
If you’ve looked at a few startups and thought you were too small for the pool, think again. You can put some money into the venture and see what happens even if it’s a small amount.
In this article, I’ll cover a few things to think about if you’re planning to invest in a startup.
Find out about technology companies
Again, when we think of companies that are exploding and becoming a part of everyday life, we think of technology companies. This is the most obvious way to choose a startup to invest in.
Many technology companies solve the problems we have by using technology to do so. Google helps us get the information we need. Facebook helps keep friends and family connected. And Apple makes computers that make everyday life easier.
This is the most likely arena to look into if you want to make a lot of money. The next big thing that is most logical is blockchain. If you can find a startup that will solve some of the problems blockchain has and make it more mainstream, then you’re looking at a potential winner.
You can use cryptocurrency to buy coins for a given startup as many tokens as possible as a way to crowdfund their startup. This is a quick way to make your money back if you pick a winner. And you can be anywhere in the world to buy. Look CNY to BTC conversion rate now and you can see that there is an uptrend.
How to find the right opportunities
The hardest part of investing in a startup is finding one to start with. You’ll have to do some networking if you don’t already have a community you’re in where there are lots of entrepreneurs.
If you don’t already know people who want to start a business in which you can become an investor, look for a venture investment platform that can match you with several people. There are also many crowdfunding opportunities and it only takes a simple search to find the one that suits you.
Once you have selected the appropriate startup, be sure to do your due diligence. Look at the backgrounds of all participants and study the details on their white papers that explain their plans.
