What Is a First-Stage Investor?

It's easier than you think to turn $50 into millions. And we'll show you how to get started.

Amazon.com Inc. (NASDAQ: AMZN) is nearly a trillion-dollar company today. But it started small, with help from investors in the early stages. Those investors made returns of 17 million percent over 25 years.

That might be hard to wrap our heads around. It's probably one of the biggest percentage gains you'll read about for a long time.

But it's still possible to earn twofold, threefold, tenfold, or more profit if you're a first-stage investor.

Airbnb and Uber Technologies Inc. (NYSE: UBER) both began as little startups. Airbnb made 3,500% profit for some early-stage investors. And some early investors in Uber made 11,900% on their stake in the company.

Those companies needed those investors to keep their business going while they got their ideas off the ground. That's why first-stage investors are otherwise referred to as angel investors. They care for the company and guide it to full growth.

Many retail investors think of an initial public offering (IPO) as first-stage investing. They don't realize it's possible to invest in a company pre-IPO. And it's even more accessible today than ever.

Before They Were Stocks: Stock picks are great – but the big money is made before companies go public. Now, you can access these opportunities just like the ultra-wealthy always have. We've made it easy – read how to get started here…

The Jumpstart Our Business Startups (JOBS) Act of 2012 made it so that you don't have to be rich or famous to be an angel investor. It opened the door so anyone could fund a company before it's publicly traded.

Today, we're going to show you how easy it is to be an angel investor with as little as $50.

We'll begin with some of the basics.

The Beginning of First-Stage Investing

Angel investing was originally a term for investors in theatrical productions. They provided funds to keep the show running before it got an audience.

Now, it's associated with first-stage investors in startups.

In exchange for seed money, first-stage investors get a stake in the startups. In that sense, it's like buying stocks on the NYSE or Nasdaq. You own equity in these companies, just as first-stage investors own equity in the startups.

The only difference is that first-stage investors don't receive publicly traded stock certificates. The ownership terms may vary because you own private stock, not public.

Sometimes, first-stage investors receive preferred stock. It gives them advantages that public stock doesn't have. Other times, angel investors receive bonds or convertible debt that will transform into common stock later.

One major difference, though, is that first-stage investing carries much more risk than investing in the stock market. Sure, you could lose on stocks. But there is plenty more room for error investing in a company from the ground level. Many startups fail within the first several years.

As a result, aspiring first-stage investors need to have a strategic plan to limit their losses. We recommend a 50/40/10 plan. Here, 10% of your portfolio is placed in high-risk investments such as angel investing. The remainder is placed in less risky investments, such as dividend-paying and growth stocks.

That 10% makes you an early investor. Angel investors can invest in exciting companies and participate as they become successful.

Now, here's how you can start with just $50.

Anyone Can Become an Angel Investor with as Little as $50

Angel investing used to be off-limits to the average American… but Shark Tank's Robert Herjavec said it best during this live broadcast: "The walls have finally come down. You no longer have to be rich, famous, or powerful to become an angel investor!"

Congress has now made it possible for you to take advantage of these life-changing deals.

By becoming an angel investor, you can be right there – one of the first to invest in the next Steve Jobs, the next Bill Gates, or the next Elon Musk.

And because you're there at the beginning, the upside is infinitely greater.

For so long, regular folks have been locked out… but not anymore. Click here for details…

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