Here's How Investing in a Startup Works

You don't need to be one of Wall Street's hyper-elite to become a startup investor.

All you really need is $50, a few tips on how investing in a startup works, and the right network.

In fact, investing in startups has become one of the most lucrative opportunities for everyday folks. But there are still plenty of people who aren't aware of how easy it is to get started.

That's because, for decades, investing in startups was strictly for the wealthiest and most powerful people around. Fortunately, that isn't the case anymore. Just about anyone can be a startup investor today.

Think about how different your life could've been if you were one of the original investors for Amazon.com Inc. (NASDAQ: AMZN). Before it became the corporate powerhouse it is now, 22 people invested $50,000 into it when it was still considered a startup.

25 years ago, that was 1% of Amazon's total value. Fast forward to 2019, and each of those individual investments are worth more than $8.5 billion.

Those are returns of 17,000,000%...

But here's the thing - you don't need $50,000 to get started. Really, you can begin startup investing with a small sum of money - in some cases, as little as $50.

Today, we're going to show you exactly how. And we'll do that in just a bit. But first, take a look at what it means to invest in startups.

Here's What a Startup Investor Is

To put it simply, startup investors (also known as angel investors) are individuals who fund firms before they go public.

In the majority of cases, startups require capital to grow. So, startup investors pitch in some cash and receive a stake in the company.

Investing in Startups Is Way Easier Than You'd Expect: You don't need to be a wealthy Wall Street investor to be a startup investor anymore. All you need is $50 and the right network. Click here to start...

Startup investors actually own a piece of the company before it holds its IPO. But even better, those that invest in startups are typically rewarded for it, too.

In fact, startup investors often receive preferred stock or convertible bonds and debt that can be turned into stock.

And what makes startup investing so exciting is the fact that you can do it yourself. You can put your money into companies that really strike your interest.

Yet there are risks when it comes to investing in startups. Fortunately, with the right strategy, you can reap the rewards of startup investing while mitigating the risks.

And here's how...

The Rewards from Startup Investing Greatly Outweigh the Risks

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Because startups are normally very small companies, getting in on the ground floor could mean a windfall of returns at the IPO or sooner. But the small size also means there are greater risks than you'd see with owning stocks on major exchanges.

Fortunately, you can protect yourself if you invest the right way.

Money Morning recommends the 50-40-10 portfolio model. This is where you put defensive and growth stocks into 50% and 40% of your portfolio, respectively. Then, the remaining 10% is for speculative plays like startup investing.

With the safe stocks taking up 90% of your portfolio, you can expect 10% returns each year. But startup investing could generate returns of 1,000% or more.

Of course, some startup investments will be duds. But the ones that find success could potentially change your life for the better.

Savvy investors will invest small amounts of money into a variety of startups rather than just a few.

But you don't have to go through it alone. In fact, we have an entire network of experts and everyday investors alike ready to help you get started...

And you can find out, here...

Anyone Can Invest in Startups with as Little as $50 and the Right Network

Investing in startups used to be off-limits to everyday folks... But during a live broadcast, Shark Tank's Robert Herjavec said it best: "The walls have finally come down. You no longer have to be rich, famous, or powerful to become an angel investor!"

Following the 2012 JOBS Act, Congress made it possible for average Americans to benefit from these life-changing deals.

By becoming a startup investor, you can be right there on the ground floor. You could be one of the first to invest in the next Bill Gates, Steve Jobs, or Elon Musk.

And since you're there from the start, the potential upside is infinitely higher.

For decades, everyday people were locked out... But not anymore. Click here to start.

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About the Author

Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.

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