A decade ago, buying groceries meant a personal visit to the market, but now you can order them with the click of a button from the comfort of your own home. Such is the power of a start-up.
Many start-ups set out on their journey with the goal of changing the world, and they have enormous potential to do so. However, their success depends on the amount of capital they can secure and a nourishing environment that has the right ingredients to maximize their potential. The founders may not always be able to pool their resources and make it work. They also require funding from outside sources.
This is where investors step in. Investors such as angel investors, venture capitalists take a leap of faith in the startups when they invest in them at early stages.
In this digital era where you can get most of your chores done using an app or through a computer, is there a platform to invest in startups? There certainly is and to top it, even ordinary people can make investments in a start-up.
Platforms to invest in startups
So, to help you get started, we have investigated and assessed the best 4 start-up investing platforms. We chose them based on their simplicity of use, track record of helping clients raise money, price choices, and more.
LetsVenture was formed in 2013 with one simple purpose in mind: to make fundraising and investment for start-ups and investors easier.
This funding platform has aided over 400 firms in raising $400 million in their early stages of development. Let’s venture is backed by several industry leaders like Ratan Tata, Mohandas Pai, and Anupam Mittal.
Once a member signs up, he has access to featured deals as well as the opportunity to learn from the best investors through curated courses and masterclasses on LV Varsity.
Another excellent network for connecting startups with investors is AngelList. For over a decade, AngelList has provided access to some of Silicon Valley’s most promising startups, including Uber, Shyp, Square, and Lime, to name a few.
On its India platform, more than $10 million has been invested in 60 startups. With more than $2 billion in funding, AngelList has helped over 400 startups.
Investors must be accredited in order to invest on AngelList.
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SeedInvest is a crowdfunding platform that has backed over 250 startups in raising funds via equity crowdfunding. Any individual who wishes to be able to invest in the next big thing can do so by investing as low as $200 investment.
Seedinvest’s Autoinvest feature enables an investor to build a diverse portfolio with ease.
Angel Investment Network
Angel Investment Network aims to connect Indian Entrepreneurs with Angel Investors. Members may interact with business angels in Mumbai, Delhi, and Bengaluru who are eager to engage with Startups in a multitude of settings such as e-commerce, healthcare, fintech, IT, and more.
Tips to keep in mind
When it comes to investing in a start-up firm, these are some of the most crucial aspects you need to look at.
1. Estimate how lengthy the investment horizon will be?
2. What is the expected return on investment?
3. Can you diversify your investments?
4. Is a clear exit strategy in place?
5. Thoroughly examine the legal documents.
The Bottom Line
To sum it up, investing in startups is a great way for investors to diversify their portfolios while also contributing to the success of an entrepreneur, but it is not without risk. Even if a company’s cash flow estimates are excellent, what seems good on paper may not transfer to reality. When it comes to investigating a start-up investment, investors can’t afford to skimp on doing their homework and never put money into an investment that you can’t afford to lose.
How Coffeemug Can Help
Q. How do investors invest in startups?
A. Investors willing to invest in startups form a partnership with the firm in exchange for some equity. If the startup manages to succeed, the investor will receive returns proportional to their ownership stake in the company and if the startup fails, investors lose their money.
Q. Which investments have the best returns in India?
A. There are a number of investment options in India that assure high returns. For example, direct equity, mutual funds, Public Provident Fund (PPF), Bank fixed deposit (FD), National Pension System (NPS) and more.
Q. Can individuals invest in startups?
A. Any individual, whether Indian or NRI is eligible to invest in a VC/debt/private equity fund as long as they have minimum cash available and meet the investment criteria.
Q. What is Angel equity?
A. Angel investors are high-net-worth individuals who invest their own money into small businesses in exchange for shares in the company.
Q. Is SeedInvest a good idea?
A. If you are looking for a crowdfunding platform, then SeedInvest is the best option. The platform offers a number of benefits, including easy documentation, a flexible cancellation policy, and access to a wide range of startup investment opportunities.