Tuesday, December 6, 2016

How Can I Invest in Startups?

According to an angel investor Paul Graham, startup investing is easier than I expected, and also more interesting. The part I thought was hard, the mechanics of investing, really isn't. You give a startup money and they give you stock.”

Well, it’s easy to invest in a startup, but finding the right startup to invest in is still tricky. You must first explore all the arenas to find the right startup and here are some ways to do so:
  • For direct investments, use venture investing platforms like microventures.com, fundersclub.com etc.
  • Investing in startups through your IRA or self-directed 401k is a great blend of tax shelter and growth potential for your retirement funds.
  • You may also invest in startups via personal connections and relationships with entrepreneurs and founders that you can build in person on online over Linkedin and other business networks!
  • Attending pitch events is also a great way to look for ideal startups.
  • Subscribing to startup news is also a great way to find investable ideas!
  • Join a syndicate on AngelList if you prefer to follow other investors.

You may also be interested in knowing the process for cashing out from startup investment.