Is there a workable way to invest in seed round as a small investor like school in this example: https://qz.com/923281/saint-francis...nvestment-into-a-multi-million-dollar-payday/
Thanks for this starting this topic. Very interested myself. Investing in pre-IPO companies....how is it done ?
First thing you should realize is that maybe 1% or even less of all seeds become real big successes. How will you recognize which are good and which are not. I know success stories of things I never believed in and I saw failures in things that to me looked like real future money makers. Even very successful people like Thiel (net worth +- 30 billion) invest in dozens or even hundreds of startups as they have no clue which will really break thru. What will happen with these ones? http://uk.businessinsider.com/33-st...7-according-to-vc-investors-2016-12?r=US&IR=T What happened with these ones? https://www.forbes.com/sites/tanyaprive/2015/12/22/20-startups-to-watch-in-2016/#99e27fc4a90d https://fundersclub.com/ Finding the gems is like trading. In hindsight they both look very easy to do. In fact in hindsight all success stories look easy and simple.
Did you actually read the article ? Your answer is right there ! "The school made the investment at the urging of Barry Eggers, a founder at Lightspeed Venture Partners and chair of the Saint Francis growth fund." As with most "closed network" things in this life, either: You know the right people; or You are swimming in money and you can get to know the right people. The school was quite obviously in category 1. But that's a rarity, most people involved in venture capital are very much in category 2. Look, its quite simple, there's a reason why seed funding is not open to all and why (unless you know the right people) you need a healthy bank balance. Its high risk, for every 10 investments you make, probably only 2 or 3 will actually work out. If you are a small investor, stop being a dreamer and focus your efforts on stuff you can get involved in on the open markets .... more than enough money to be made there without having to get involved in risky seed funding !
You typically have to be an accredited investor and the way to get access is to join an angel investing group. If you are able to get into the right group you will get access to good deals. I beleive that the JOBS act has lightened the requirements for startups soliciting funds but I don't know what the difference is now. However it's not without pitfalls. The two risks are that 99percent of these startups fail. And in the 1percent that succeed you are likely to be diluted as it grows and seeks more and more capital.
I don't think much has changed b/c companies raising capital don't want to bother with non-accredited investors. Probably b/c there is much more paperwork for them.
It's easy. Join angel.co and/or find a fund like my close friend Vishal H. Www.atmn.vc automation ventures vc to invest with. I know several ex hedgies now in the vc biz. Its all about your network. and its the only place a $10k investment can become multi millions. Right now we are liking castle, momentummachines, youderm, nighthingale et al. surf
You clearly did never join and invest $10 K. Or maybe the story is BS again. Would it be better than openig a dry cleaning shop?
That's really the question isn't it comparing any investment or trading endeavor, Is it better than just owning a normal small business like a dry cleaners?