Choices have consequences. Choosing to invest in a startup company can be a scary choice, given that its future is still uncertain. More often than not, only the established entrepreneurs will take the risk but not the average citizen.
The truth is no one is ever prepared to lose their money, but on the other hand, investing in a startup can turn out to be very lucrative. Besides, the Jumpstart Our Business Startups Act (JOBS) has relaxed rules and regulations for businesses seeking funding.
Putting together a broader investment portfolio
Today, budding entrepreneurs not only have tools and technologies to drive their success, but they also have access to different funding platforms: –
Microventures: – Do you know you can begin investing with as little as $10 thanks to Microventures? The platform is one of the early founders, and it supports both established and early-stage startups. However, it is very selective and only accommodates accredited investors.
WeFunder: – To date, the platform supports about 250 companies have received $110 million in investments. The investment comes from a wide range of companies, including a dog cancer cure. As it continues to pursue the market, its primary goal is to be able to accept as little as $100 and also be able to fund over 20,000 startups by the end of 2029.
SeedInvest: – It uses crowdfunding. It has pre-screened and funded more than 150 companies with a registration of over 250,000 investors. The platform is somewhat very strict and very limiting when it comes to the acceptance of companies seeking funding.
Republic: – The platform uses a four-step screening process to analyze and approve that, indeed, a company is viable for funding. It will dig deeper into the company’s mission, products, its founders, and progress for growth. It also carries out due to diligence exercise. Nonetheless, once you are accepted into the platform, you can begin investing with as little as $10.
Meanwhile, given the risks involved in investing in a startup, many governments offer caps on the amount of investment one can out within 12 months. Some of the determining factors of how much one can invest include the investor’s net worth and their annual income.