What is startup & How to invest in startup Companies

invest in startup

What is startup & How to invest in startup Companies 

Hello, today we are going to talk about startups how to be invested in startup and what are the ways through which you can invest in the startup. If you do not know what startup means, then let me tell you that startup means that the new company that has started, As you can see that a lot of startups are coming in India, some are going to succeed, some are failing, So if an investor invests in a startup and that startup becomes successful then the investor earns money, as soon as the startup does not run or fails, the inverter makes a loss.

The main difference between the stock exchange listed company and the startup on is that you can start with a small amount in the listed company on the stock exchange. When you invest in the stock market, the volume is high enough, due to which you can easily buy and sell shares, Startups do not happen at this, startups are not tradable. usually, Startup is known to give more returns than the stock market. At the same time, if you see the new company's failure rate, that is too much, then when you invest in a startup, here too you need to understand the business too. As we look at the performance of the business while investing in the stock market, the same thing you have to do in a startup. The history in a startup is very low, due to which analyzing becomes more difficult.

So the first way to invest in a startup is Angel Investing. If you have to invest in a startup then you can personally contact them. India has a lot of Angel Networks. You can invest in a startup through them too. Such as Mumbai Angel Network, India Angel Network, Delhi Angel Network and Chennai Angel Network etcetera. So you can visit the website of these Angel Network and register there, you can also hear the pitching of those who want to pick up the startup funding. As we see, money does not matter how much you have to start in the stock market. But not apply the same thing in the startup, you should have a good net worth to invest in a startup. Many Investors and Businessmen are doing Angel Investing as you see, Wipro's Mr. Azim Premji invests in the startup through his family office Prem Ji Invest. On the other hand, the founder of Infosys, Mr. Narayan Murthy, is investing through his venture capital firm catamaran Venture, there are many investors who do Angel Investing.

The next method of investing in a startup is the crowdfunding, There are many crowdfunding websites like Impact guru.com Catapult.com, through which startup is picked up the funding. You can also invest in the startup by participating in it. But crowdfunding is not so popular nowadays nor does it prefer to raise funds through startups crowdfunding. Basically startups like investing from the angel investor and venture capital.

The next way to invest in the startup is to invest in Venture Capital, Venture capital is known for investing large amounts in the startup. Basically ventures capital raise money from the investor and then invest that money into startups So if Angel investing is not possible for you then you can adopt a venture capitalist approach. That is, you can invest a particular amount in any Venture Capital and then Venture Capital will arrange money from many investors like you and then invest that money in startups.

Venture Capital does not take money from anyone like this, they only take money from high network investors. So if you have big capital or comes in the future, then you can think of investing in startups. This is also a great option. So here we see 3 ways through which you can invest in startups Angel Investing, Crowdfunding, and Venture Capital And the way of work these three is different, in the beginning, you can adopt the method of Angel Investing. And if you are interested in Startups Investing, then you must tell us by commenting so that we can cover topics related to startups investing in the future.

Hope you enjoyed this post if you have any questions relating to this post or from the stock market, you can ask us any questions by commenting in the comment box.

What is startup & How to invest in startup Companies What is startup & How to invest in startup Companies Reviewed by Yogesh Dhawan on August 09, 2019 Rating: 5

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