Investment planning is important. In order for individuals and families to ensure a reliable future in retirement, a robust investment portfolio is key. While the conventional wisdom in investment strategies typically encourages folks to build their portfolio around stability, there is a consideration that some either ignore or don’t know about. That consideration is investing in startups.
Before dismissing this element in your strategy, consider a couple of the pros of investing in startups:
- Getting in early – Who knows, your modest investment could turn out to put you in on the ground floor of the next Facebook or Google. While you shouldn’t deploy this kind of anticipation with every investment, choosing to consider startups in your investment strategy could turn out to be quite lucrative because you were able to get in early, possibly even during a first offering.
- The motivation of the entrepreneur – Most entrepreneurs are driven to succeed and this drive and ambition may be an intangible in terms of investment value, but they should not be dismissed. These qualities can drive them on to success and your early investment could offer them the financial support that allows their idea to really take hold all while servicing your portfolio.
Don’t be too dismissive of startups. While every startup isn’t a good fit or even a good idea, keeping an open mind about investing in startups could propel your portfolio to another level and provide you with a fantastic return.