Should You Invest in Startups
Figure out what you want to invest in then look for resources to help Today, we\u2019ll talk about investing in startups Should you invest in startups? Startups are very risky and it\u2019s a lot harder than it looks.\xa0 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.\xa0\xa0 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.\xa0 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.\xa0A group can give you access to more deal-flow and due diligence support.\xa0On the other hand the group may pursue deals you are not interested in and vice versa.\xa0\xa0 How to get started? - Figure out what you want to invest in and then ask what resources you need to do so successfully.\xa0Do 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.\xa0Don\u2019t 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.\xa0\xa0 Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!