Investing in a Startup Company

2 Replies

The chances of startups succeeding may be a bit less than investing in a company that has a proven track record but has anyone invested in a startup tech company or any kind of startup at all? 

Sorry, can't really delete/move the post to the investment forum section. LoL

I haven't invested in a startup, but if you think its worth it go ahead. Don't let anyone here stop you.

Remember, every company you know was once a startup.

@Vernalene Perez

I own shares in several startups. So far I have had 0 hits, and I am not holding my breath to see what will happen with these.

Reality is: chance of success is low. Good news for me is I have never paid to own shares, as I always receive them as a trade for work (I am a software engineer).

Despite the fact that I can get shares for no money down (although time is still money), I have still moved toward cash-compensation engagements more often. This may reflect the pessimism of hard-won experience. Alternatively, it reflects the fact that real-estate investors and successful businesspeople recognize the difference between guaranteed, regular income and the (often false) promise of outsize future returns.

In many respects, this is similar to the 'Buy for Cashflow' vs. 'Buy for Appreciation' debate. Startups are the ultimate appreciation asset. 

Your chances are very slim when you choose one startup at random, and that investment could be a pretty penny. To me, this is very similar to the middle-class investor who dumps their net worth into a one-bedroom in NY or San Francisco, instead of diversifying across income assets in friendlier markets. 

I believe most folks in the BP world would be better off with a regular old service business like a laundromat, auto-shop, or contracting firm. I do recommend staying away from the food/drink businesses, but it's all a matter of personal preference. I would consider these alternatives before jumping into startup investing. Even as a person in tech, I prefer these old-fashioned income machines to the flashy new entrants in my own field.

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