User-friendly guide on making investing decision, or “Three whales of equity crowdfunding”
Choosing a startup for investment is a difficult, partially paradoxical task: at the same time you have to choose not only a fairly innovative but also a reliable project. Startups now provide a lot of such business and investment opportunities.
But how to find a middle ground between a brilliant idea and a stable risk? Read on:
First of all – you need to know how exactly process of investing goes. “Investment crowdfunding can breach various securities laws, because soliciting investments from the general public is often illegal, unless the opportunity has been filed with an appropriate securities regulatory authority, such as the Securities and Exchange Commission in the U.S., the Ontario Securities Commission in Ontario, Canada, the Autorité des marchés financiers in France and Quebec, Canada, or the Financial Conduct Authority in the U.K”, so always check all the startup’s securities before investing.
Unlike prior Securities Act exemptions, which only allows the most financially well-off to invest, Regulation Crowdfunding opens investment opportunities to everyone.
Funding portals – good place to start investigations. The best investment advice that you will receive in your life will probably be given to you by one of successful investors with whom you can meet there. Wefunder is a good place where to invest in startups. Go raise money.
Money – is the first thing you want to achieve by investing. In 2019 most investors seeking investment opportunities with an eye on startups. When it comes to startups, a lot of things become tightly connected to
And to double-risks.
Risk – is the most common thing in equity crowdfunding. Sure, you can’t calculate every little thing that affects projects lifecycle.
Well, start from operational Due Diligence. The market for innovative products is new, so any startup company has a period of time for occupying a large market share due to the effect of novelty and lack of competition. Expected volume of sales has to be confirmed by research. Great importance is attached to the team: experience, functionality, interchangeability, creativity.
Once again, any good popular equity crowdfunding platform is a good place to get rid of researches you don’t want to do.
Well, as there is no startup that “well, this one will shoot for sure”, there is also no investment that will surely justify itself. So still be ready for failure.
Your Patience is probably the biggest whale your investments should stay on. Each time you invest in startups you take a double-risk, so be quadra-patient. You also have to note, that the second whale, Luck – is just the ability to recognize the “signs”. As one told “Millionaire – is not a status of a person, but a state of mind.”
Donation – is definitely not what you are doing. Well, of course, you are investing in idea you like, but equity crowdfunding means that you take not only all the related risks, but also the share, relevant to invested venture capital, if project succeeds. So it’s better to choose a startup, that you can be part of.
Common sense. If you are not sure about your right investments feeling, so you can’t rely on yourself – ask others. You may check what other people are actively investing in, so you’d probably be calmer about your money.
Forget everything you read.
If you entered in Google search “how to invest money in a startup”, then you are doing something wrong.
Cause amount of money, startup to invest in, influence on project you want to achieve and so on – all that things are defined by You. Cause You are the third whale. Instead of searching for such a rules, take a blank sheet of paper, write at its top “how to invest money in a startup”, and list the rules that You consider necessary. If You don’t like to take big risks, You may always regulate investments size.
Be Yourself. Have fun.