In the understanding of the majority of ordinary citizens, an investor is a person with huge capital who has nowhere to go. For the average person, investing seems unattainable and inaccessible.
But this myth is being debunked recently. Now everyone who has at least some money can become an investor. And then we will talk about how you can become an investor.
Where to invest
It is clear that the way of investing depends on what kind of capital you have and how much you are willing to spend. Also, much depends on whether you want to take risks or not, whether you want to quickly recoup your investment or not? Let’s consider the most popular and effective ways of investing.
Ways of investing:
Crowdisting. Yes, the name is correct, and this is not crowdfunding. There are specially created platforms, where everyone can register and invest in a particular investment.
Benefits for the investor in the following:
- He gets a certain percentage of the income received by a certain project;
- He returns his investment in full with the increased money supply;
- He becomes the owner of some share of the company.
With this investment option, it is possible to obtain all of the above benefits at once, and maybe only one of them.
The advantage of this method is that there are no limits to the amount of capital. As much as the subject has in stock, so much he can invest. A striking example of such investment is the acquisition of shares in joint-stock companies.
The disadvantage is that there are few domestic platforms for extreme investment, and there is no clear legislative mechanism for such a process.
Business investment or the formation of an investor as a “business angel”. The concept of “business angel” is now popular in certain circles.
This means that the investor invests in the project at a very early stage of business development: there is no company yet, no production, there is only some idea and a prototype of some products.
That’s all. A person invests money in the development of a business and its launch, and then gets a share in the ownership of the company.
This method is effective, but risky. In order to make a profit, you have to invest in neither, nor even in two projects. The minimum capital for investment is 20 -50 thousand dollars. Therefore, it is necessary to have a minimum of $100,000 in order to earn effectively.
Venture funds. The method is very popular in the West and in America. Some funds are created where specialists in their field work: they evaluate projects, calculate the risks and efficiency of each startup.
The investor transfers the money to such a venture fund, pays him a certain percentage for the competent management of the money and then gets a profit from his investment.
The disadvantage of this method is that it is difficult to become a member of such a fund.
You need to have either enough money or someone else’s recommendation. This method does not work in Russia, because there are no such funds in the country.
Analysts argue that you can create your own venture fund. Of course, this is a very risky venture and it is necessary to have not only a specialized education but also a certain “gooseberry”. If the right staff and attract like-minded people who are ready to raise a total of 10 million dollars, you can try.
How much capital is considered sufficient
If we consider the option of crowdinvestment, then experts say: domestic investors on average invest in such resources from 1 to 5 thousand dollars. Thus, the minimum start is $1,000. Owners of such sites assure that for successful investment and reception of appreciable profit it is necessary to have not less than 100000 rubles, and it is better to have 200000 rubles.
In addition to investing in some profitable projects, you can try your hand at being a creditor. Such a model is now popular and is called p2r-crediting. The principle of work is as follows: people who have money lend it to people who do not have it.
The starting capital for participation in such programs is only 10,000 rubles. The advantage of this method is that the loan agreement is immediately signed between the borrower and the investor, bypassing intermediaries. The minimum investment term is 6 months.
If you want to entrust your funds to the venture capital fund, you need to find it outside the state. However, the minimum investment threshold will be $500,000, which is not suitable for everyone. But if there is such a sum, it is one of the safest and most profitable ways of passive earning.
How do you find the startup yourself?
Let’s say there is money, a desire to invest it, but there is no desire to go to some community of investors, what to do in this case? The best option is to find the startup yourself. In this case, all responsibility and choice will be on the investor.
Methods for finding a startup:
- Become an investor on the startup website. There are many startup databases on the Internet, where every investor can choose the most attractive startups. The convenience is also in the fact that you can choose a project depending on the amount of investment, scope of activity, payback period, etc. The most popular platforms for this: AngelList (world leader), StartTrack, Pipeline on Rusbase and others.
- Track information about competitions. As a rule, various and interesting developers, ready to give everything for realization of the ideas, take part in competitions. There are a lot of such participants and not all of them receive funding from the organizers of the competitions. So just choose your winner and try to help him;
- Use accelerator programs. Such programs are constantly coming to both the world and domestic markets. The purpose of these programs is to connect the investor and the developer, taking a commission from their intermediary services. Those who get into the database of such accelerators have all the chances for the future, because they are strictly selected.
Thus, if there is money and a desire to earn, it can be implemented at any time and in different ways. Do not forget that investments always require knowledge and experience, and are associated with high risks and losses.