What do you think about investing in startups as a way to diversify your portfolio?

Alex_BM

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Sep 10, 2022
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What do you think about investing in startups as a way to diversify your portfolio?
 

Alex B.

Member
Sep 18, 2022
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If you're and accredited investors than definitely it's a great way to diversify your portfolio and if you can be like the investors of figma in even on out of like 50 then you'll have made an amazing profit that's safer from taxes better than those from stock investments.
 

David Viera

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Sep 22, 2022
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What do you think about investing in startups as a way to diversify your portfolio?
I think investing in startups is a great way to diversify your portfolio. You're investing in something that's new and innovative, which means that there's less risk of the company failing, because they haven't been around long enough to have accumulated much debt or bad habits.

And if you're lucky enough to invest in a startup that turns out to be wildly successful, then you could make a lot of money—which is always nice! But even if you don't get that lucky, at least your investment will pay off if you keep it long enough and let compound interest work its magic!

I've seen this work out for me personally: when I first started investing, I was just starting out in my career as an engineer at [company name]. My job wasn't super well-paying (and still isn't), but it was enough for me to start putting some money away every month into my retirement accounts. At first, I didn't know what else to do with it—so when I saw an ad for "venture capital" options on my 401(k) platform, I took the plunge and invested $500 into one of these startups called [company name]. The company didn't do very well at first.
 

Baldric

Member
Sep 22, 2022
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Investing in startups as a way to diversify your portfolio is a great idea. It's definitely true that startups are riskier than other investments, but I think it's worth it. The potential for reward is so much higher, and if you're not willing to take risks, you'll never see big returns from your investments.

I've seen this play out in real life as well. One of my friends invested in a startup when we were still in college and now he's retired at 25. The company was called ProLablez, and it has grown into one of the biggest tech companies in the world. It started with just one person working out of his garage and now employs thousands of people across multiple countries.

So while there are definitely risks involved with investing in startups, they can also be hugely rewarding.