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?
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!