So maybe you’re not a multi-millionaire angel investor who meets with startups around the world and provides them with funding, but you still find appeal in the concept of investing in exciting new companies.
How do you invest in startups when you’re just a regular person who wants to diversify your portfolio through new opportunities? There’s something that can be inherently alluring about investing in the newest tech companies or believing in entrepreneurs, and as an investor, whether you yourself are in the tech industry or are an entrepreneur, or simply love the concepts, you can also be part of this.
That said, investing in startups is one of the riskiest areas to put your money, but if you understand the risks and are comfortable moving forward, the following are some simple ways to put your money in budding businesses.
Startup Stock Exchange
One option you might look to is called Startup Stock Exchange (SSX), which is an online platform that creates access for investors to vetted startups from around the world. This is a regulated marketplace where investors can buy public shares of startup companies, and these startups are raising capital through these investors from around the world.
Two entrepreneurs founded the site, and their goal was to create a better experience for both investors and startups. What’s unique about SSX is the global component. The platform features advisors in more than 20 countries, and the screening company works based on sector and geographical experience.
If you want to venture into startup investing in another way, you might opt to go the penny stock route. Penny stocks are volatile and risky, but they do provide unique opportunities to invest in up and coming companies that might be under the radar.
Your best bet here is to learn as much as you can before you start investing since there’s both an art and science to being successful with this approach. A lot of investors something like the Tim Sykes challenge cost to be relatively reasonable, and it gives them the chance to learn the ropes before investing in new companies through penny stocks.
Interestingly enough, technology is leading the way in allowing regular people to invest in startups, many of which are themselves technology-based companies. One of the top platforms for investing in startups (although there are many), is MicroVentures.
MicroVentures gives investors the opportunity to access what they call “highly curated early and late stage investment opportunities.”
To take advantage of this platform, users sign up to join a network of angel investors. They then review the available startup investment opportunities and make online investments in the startups they choose. MicroVentures performs full due diligence, and they are a full-service online platform. It combines venture capital and equity crowdfunding, giving investors a unique opportunity.
Of course, these are just a few of the many ways you can get in on the ground level of companies. There are plenty of other options, but the above integrate convenience and technology for a streamlined experience that works well for a broad range of investors.