Top 6 Reasons Why You Should Invest In Startups

Top 6 Reasons Why You Should Invest In Startups

Where should I put my money? You’re in the early years of your career. You want to be successful in your job. You have hopes and dreams and you want to grow financially. You’ve seen a lot of startups mushroom all around you. You like a lot of them because they are businesses that work in sectors that interest you. You vibe with them. You wish you had invested in them when you were in school or in college, especially because now, they have grown into very large firms. Some have even become unicorns. Now that you have funds, you don’t want to miss any more opportunities. You want to start investing in startups.

Thanks to crowdfunding platforms, you don’t need to be a rich angel investor to buy a stake in new companies. All you need is an account in the platform and you can invest amounts as low as $100 per month right from the moment they take their first baby steps. However, is putting your money into a start-up really a good idea? How is investing in startups better than investing in established firms? Below, we have listed for you the top 6 reasons why you should go in for startups.

Super-high rates of return:

Startups have the potential to give you enormous returns. Depending on the part of the globe you’re living in, under normal circumstances, you can get maximum profits of up to 10–20% in the stock market. On the other hand, angel investors routinely make 30–40% profits on their investments! And, there are also those rockstar examples like Alphabet Inc. popularly known as Google giving its investors around 1700%!!!

No doubt, this is not the norm and getting into startups is risky. After all, a vast majority of them don’t do well. But, that can be addressed if you find a trustworthy crowdfunding platform that allows only the most reliable and promising companies to come on board. So check how dependable the platform is. Once you’re convinced, go for it. Take the plunge.

Super-fast returns:

Today startups are growing at speeds that were previously unimaginable. You can read stories of companies that have become unicorns in just under 3 years! Can you believe this? Imagine you had bought shares of one of these lightning-fast companies.

Look at the same example of Google. How long do you think it took for the investors to get those astronomical returns? Less than 7 years!!! Do you think such a thing would have been possible if they had gone to the stock market? This is why you should get into startups. And, with a reliable crowdfunding platform, you have the option of buying shares of several companies. In this way, you’re giving yourself the opportunity to grow but also mitigate the risk of losing money.

Diversification:

Needless to say, the best way to reduce risk in growing your money: diversification. When you include startups in your asset purchase you’re adding more diversification.

So as a young person, you should seriously consider expanding into new companies especially if you’re convinced that your crowdfunding service thoroughly studies the firms it allows on its platform.

Lesser market fluctuations:

Unlike the stock market, crowdfunding platforms don’t display very large variations in asset prices. This is because traditionally most people have been investing primarily in the stock market and stock market growth is considered an indicator of the growth of a nation’s economy. 

Thus during an economic downturn, you may see the stock market crashing but crowdfunded assets remaining far more stable. This is a rather subtle benefit of putting your money into startups. So, even though at face value it may look like new firms are risky, they may well be reducing the risk for you.

Invest in what you love:

The primary reason why people invest in crowdfunds is that they can find businesses that work in sectors they love. Maybe you’re passionate about a new technology or sense that a certain new innovation is going to be the future. Or, you’ve spotted firms that are creating solutions to fight climate change. You want to invest in them. The problem: all of them are startups and none of them are listed in the stock market. 

But, with a crowdfunding platform, you can pick shares of the new firms that excite you with just a tap on your smartphone. Now, you’re expressing your uniqueness and passion even in your asset portfolio!

Helping job creation:

If you want to fight hunger and poverty and a whole lot of other problems of society you have to create employment for people. That is how the economy works! Of course, the government should do its bit. However, there are limits to what the government can do. So the quickest way to job creation? Business. 

Businesses have the inherent nature to create jobs. And, when you fund startups you’re directly contributing to job creation. The more you invest in a new firm, the more it grows. And the more it grows, the more jobs it creates. Thus, you can see that investing in startups is not just beneficial for you, but is a huge contribution you’re making to society.

As a young person, you may find it most beneficial to go for higher-risk assets. Reason: even if you make losses, you still have the opportunity to recover later on in life. However, your risk is greatly reduced if you go through a trustworthy crowdfunding platform.

This is where we can help you. We are a reliable crowdfunding platform that you can trust. We do in-depth scrutiny of a company before we list it on our platform. We study every aspect of the business right from its founders to its products and services to its target market and the scope of its success. With us, you can have peace of mind. Furthermore, on our platform, you don’t just get to purchase shares of awesome startups but also get to purchase them in the form of the soon-to-be hyper-popular NFTs.

So why wait? Go ahead and register on our platform and become the ultrasmart investor that everyone wants to be.