Thus, according to the calculations of analysts at PwC and CB Insights, in 2018 the highest level of venture financing was observed. In total, $ 207 billion was invested, which is 21% more than in 2017. The total funding in the United States increased by 30% over the year, amounting to $ 99.5 billion.
So why should you invest in startups? In fact, this is the most profitable investment area. A good example is Facebook. Investors who bought a stake in 2005, by the time the company entered the IPO in 2012, earned 200,000%!
Or remember the people who bought shares in Uber, when the whole company was valued at just a couple of million dollars. Today its price has reached $ 40 billion.
Investing with a startup is a quick return. Truly promising startups return the investments in two to three years. An investor does not have to wait long, as, for example, in the case of shares of large corporations. Here, the risks of investment loss are minimal, but the profitability is low.
According to statistics, stock market indices, which are calculated on the basis of quotes of “blue chips,” in the long term, slightly outperform inflation. And during the years of crisis, they leave for the negative area.
In addition to the financial side of such an investment, there are other advantages. Startups are always an exciting new idea. And investing in it, the investor becomes part of a business that has no analogues in the modern market. Thus, the investor, in part, contributes to the development of technology and has the opportunity to help make the world a better place. In fact, investing in a startup is entering the market at the very start of an uptrend. An investor can invest very little money, but in the foreseeable future make a good profit.