Angel/startup investing

[bravotwozero]

Anyone invest in startup companies via crowdfunding? Any of them go to IPO for you? I've just started getting into this, would love to hear other people's experiences.

---

Members don't see this ad.

 

[emergentmd]

I know many docs who have done this and never materialize. I did this with a mid 5 figure investment but never made it. Most startups fail, a small amount make it. IMO, its like playing the lottery.

 

[Mad Jack]

Even the biggest names in VC investing have a failure rate of 75% or more. As an individual investor, you don't really have the resources to play the VC game, which is less about investing in successful companies and more about artificially increasing company valuations so that your value increases through multiple funding rounds until an IPO. That hype train doesn't build itself, and is largely the work of VC firms themselves rather than the companies they're working with. As the VC firm, they create goals, pressure for increased growth, pitch to other VC friends for the next funding round, tip off the media about the hot new thing, and this cycle repeats until you can create a frothing public demand for an IPO and multiply your holdings.

 

[Financial Advisor Justin]

No reason to reinvent the wheel, unless you have money burning a hole in your pocket, there are substantially less risky investment options out there. There are many tried and true investment strategies out there from capital preservation, income, tax free growth, etc.

Happy to answer more questions if you have them!