Finding a standard definition for a startup can be difficult and depends on who you ask. A several-year-old and profitable business can be referred to correctly as a startup.
The fastest way to understand what may be happening in the future is to be involved with a startup. Founders and investors of startups have a knack for knowing what will happen before it happens.
Startup investing is a double-edged sword for individual investors. To be truly successful at it [investing, they should either have great advisors or be able to perform the market analysis and company due diligence that most institutional venture capital firms are accustomed to doing, which is typically extensive.
Darren Hazan, a Crowdfunding Expert at DarrenHazan.com, gives three considerations you should consider before investing in startups.– Is the startup building something based on a trend (say smart toilet seats) or a long-term movement (environmental awareness)?– Have the CEO, Founder, Directors, etc., created a startup before, and do they have a track record of success? Have they successfully exited?– Is the company weatherproof and evergreen?
Your best bet as an individual investor is to do research and due diligence on the startups on these investment platforms. When using a crowdfunding platform, you can invest as little as $100.