Why Investors Do Not Invest in Startup Business | #startup #funding #investor #business #USA #Europe #asia

a
Startups are very risky investments. Expect to lose your money and don’t invest more than you’re comfortable losing. Even if you invest through a syndicate or fund.
b
Start small. Invest more as you learn more. And never invest more than 5% of your net worth in startups—these investments are risky and illiquid.
c
Diversify. Only invest if you have enough capital to make 15-20 startup investments. Even still, you should expect your total losses to exceed your gains.
d
Past performance does not predict future success. Just because a syndicate or fund has made money in the past, doesn’t mean it will make money in the future.
e
Co-invest with experienced investors and make sure you’re getting roughly the same terms. If you’re backing a syndicate, make sure the lead is an experienced investor.
f
The lead investor in a syndicated startup may have conflicts of interest with you. For example, she may be an investor in a competitor.
g
Shop around. Thousands of companies are raising money on AngelList. Don’t invest in a company just because it has good press or famous investors.
h
Do your own research. The information on this site is submitted by users and is not verified by AngelList. We do not conduct due diligence on any syndicate or company.
i
Startups change plans constantly. And they don’t need your permission to do so. Plans and forecasts are not predictions about the future.
j
You may not have the same rights as other investors, including theright to invest in future financings or a board seat. So your returns may not be as good as theirs.
k
Don’t discuss a fundraising in public unless you’re certain the company is raising publicly. It could get the company in trouble with regulators.
l
Stick to the facts and don’t make forecasts when you talk about a fundraising company. Investors and regulators can use non-facts or forecasts to go after the company.
m
You must agree not to hold AngelList responsible for your losses or missed opportunities.
n
Invest in a startup because you love their mission, not just for profit.
o
When in doubt, don’t invest.
 
Learn more about investing risks.
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