Why Diversifying your Investment Portfolio is Never a Bad Idea

Spreading your investments across multiple startup companies in various industries is the key to obtaining a successful startup investing portfolio. This is one of the most important pieces of advice you can receive, whether you’re investing millions of dollars or even just hundreds of dollars. Diversifying your startup investment portfolio minimizes risk and increases the number of opportunities for your investment to increase in value.

Not Solely for the Rich

Before the JOBS ACT, investing in early-stage companies used to only be for the high net worth individuals. Those that did not meet certain net worth or annual income thresholds were deemed ineligible to invest in early-stage companies. The vast majority of the US population did not reap the benefits of owning shares in private companies and potentially watching their investment grow if the company succeeded. But the JOBS ACT has now provided the opportunity to every individual to invest in startup companies that they believe in.

Due to the benefits of the JOBS ACT, PicMii Crowdfunding has designed a user-friendly start-up investing platform to make sure the everyone has an equal opportunity to invest in these innovative companies. But, as a startup investor, why is it so important to diversify my investments?

1

Less Risk

If you invest in a single company, you’ll run a high risk of losing all your investment if that company doesn’t take off. By developing a diversified investing portfolio, it will decrease the risk of losing your money and could give you the perfect equation to receive big returns. Of course, here on PicMii, we try to make sure only the best companies will be raising capital on our site to minimize the risk for our investors as much as possible. But the risk will never hit zero.
2

Oscillating Trends Lead to Success

Trends in industries oscillate considerably. The hottest product one day may be in the rear-view mirror the next day. Just as diversifying your portfolio decreases the risk, it also increases your chances of hitting the right trend. Investing in multiple companies will give you a higher likelihood of hitting that company that has the right trend at the right time. This give you a higher likelihood of receiving bigger returns. As the old saying goes, don’t put all your eggs in one basket!

The Attraction to Startup Investing

The initial attraction to startup investing is obvious: the returns on your investment have the potential to be quite lucrative. An example may include Sequoia Capital Investments who netted a 50x return on their investment in Whatsapp in their early days. These large returns are what individuals are often searching for when investing in startups.

However, the appeal goes well beyond just returns on your investment. There is something quite compelling and interesting about joining a community of investors in a similar startup, becoming a partial owner in the company, and having the opportunity to create relationships with the owners of the startup. Along with these core perks of startup investing, you are backing companies looking to shape the future of society and innovators looking to change the world. It’s incredible being able to watch that first hand through owning equity in their startups.

How do I Start Investing?

PicMii has carefully crafted a platform built on simplicity for our members. The investment process is streamlined to make startup investing easier and our support team is always available to help complete an investment. If you want to start investing today, start by researching the companies raising on our platform and carefully do your own research to learn more about them and the opportunity. To invest, simply press the “sign up” button in the top right of the page or even click “Invest Now”, which will take you to the sign up page if you are not already logged in. Once you have a PicMii account, you can make an investment in a startup by navigating to their virtual business pitch page and clicking on the “Invest Now” button. Finally, just enter the requested information and your investment will be processed shortly after submission! 

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WHEN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING. THIS INCLUDES ANALYZING THE MERITS AND RISKS INVOLVED WITH INVESTING IN THE OFFERING. INVESTMENTS ON PICMII CROWDFUNDING ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK. THIS RISK INCLUDES THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.

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Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to both accredited and non-accredited investors, are made through PicMii Crowdfunding, LLC. Although these offerings are open to the general public, all securities offered on PicMii Crowdfunding have not been recommended or approved by any federal or state securities commission or regulatory authority. PicMii Crowdfunding does not provide any investment advice and does not provide any legal or tax advice with respect to any securities. All securities listed on The Platform are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. PicMii Crowdfunding does not verify the adequacy, accuracy or completeness of any information provided by the issuer. Neither PicMii Crowdfunding, nor any of its officers, directors, agents and employees makes any warranty, expressed or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this website or the use of information on this website.

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