Investing in startups can be rewarding in more ways than one. You not only get the satisfaction of helping build a worthy project, but if the startup is successful the profits can be humongous. While not every startup will end up with a billion dollar exit, there are a few points that can help you make profitable investments to meet your financial goals.
Check Out the Team
Since an investment in a high-tech startup can be a commitment of five to seven years, it is important that you get along well with the team you’ll be working with. Chemistry between you and the individuals as well as between the employees themselves can make or break any startup. The team should consist of high-potential players who share a deep understanding of the project they are developing. They should be experienced enough with the product to be aware of the hidden pitfalls and know how to build around them.
Stick to Your Own Business
When possible, stick to investments in industries that run parallel with your own interests and experience. You will be better staged to make informed decisions and throw out tidbits of wisdom as the project moves along. For instance, if you are passionate about solar technology and you have experience in this area, then you can not only invest money but valuable insight into the project that might give it a better chance for success. In the end, you will feel a sense of pride in supporting a startup that shadows your own personal interests.