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Question about making money through investing in Startups

Discussion in 'Making Money' started by hatterftw1, Jan 2, 2013.

  1. hatterftw1

    hatterftw1 Power Member

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    Now that I have started to make some money through IM I keep looking to expand in different areas not putting all my eggs in one basket as they say. So now I'm interested in trying to invest but not in the typical big business stock which does not favor the smaller investor, I'm looking to invest in startup type people. Maybe these startups aren't even companies yet just products like some person developing like software/website/service he/she is going to sell, actually this is what I would prefer to get involved in. Like for example something where say this developer need some funding to develop/advertise some software he is building where say he is asking for $1,000 in return for 10% equity in the product or whatever.

    So here is where my question comes into play, where at can I find people/startups like this who are looking for investors for a product of theirs? Is there any big forums or sites for this out there anybody knows of that are related to this? I know in BHW's JV section you see things like this pop up every now then but it doesn't seem like there are many.
     
  2. MUSICMOON010203

    MUSICMOON010203 Registered Member

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    watch Shark Tank
     
  3. hatterftw1

    hatterftw1 Power Member

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    I do, I love it thats my inspiration haha
     
  4. Ebcompany

    Ebcompany Registered Member

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    I think the biggest key is to make sure you choose the appropriate investments for you.....choose things you understand and know about.....realize the equity position you are taking (remember 1% of $1 million is alot more than 10% of $100) I think that is where some people make mistakes they think that their $1000 is worth 10% equity and there are larger more advanced projects where they might only get 1% but their chance of return is WAY BETTER.

    The next thing would be just to use common sense. And I know this is going to go against everything you have learned online....but I think you have to have faith in people. If something does not go right with your investment, work with the person and hopefully it will work out. If you go in to it worried about getting scammed, cheated, etc then you probably will. YOU WILL lose money in some investments but that is simply the COST OF DOING BUSINESS. If you make money on 7 out of 10 and lose money on 3 out of 10 but netted a profit then you are doing great....Dont worry about the 3....focus on making more from the 7.

    I think you have the right idea....and FORBES did an article in Dec 11 called "The Rise Of Developernomics" that kinda relates to investing in technology and to me it makes alot of sense and I think was well placed...so check that out.

    Good Luck
     
  5. hatterftw1

    hatterftw1 Power Member

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    I wana get my feet wet in this but my problem right now is I just dont know where to find these people trying to launch these products looking to JV with investors!
     
  6. replaced

    replaced Newbie

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    There's countless amount of people looking for money for very small startups. A long time ago, the large banks would lend money out for small projects if you could persuade the bank manager to do so. Now is a completely different story. No bank will even look your way and many individuals who invested in small startups got burned. A person who invests in a small startup or buys a small business is usually a sucker.

    Money for software development? :eek:
    Iphone app?
    GL
     
  7. everythingred

    everythingred Jr. VIP Jr. VIP Premium Member

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    Maybe become an angel investor but it's extremely risky and is usually for those with deep pockets.
     
  8. submit

    submit Junior Member

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    Kickstarter .com
     
  9. travisle

    travisle Junior Member

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    This is actually about to become much more feasible this year. The JOBS act went into affect on the new year in america, so now anyone can invest in a whole bunch of new startups, whether it is large or small. If you don't know what the JOBS act is, just google it.

    Also I came across some European crowdfunding sites that offer equity in projects on the site. I forgot what they were, but I am sure if you start digging around european crowdfunding sites you will find them. Either way a lot more of these will pop up in the US this year.

    You could also post in the JV section here and on other forums and say that you have $1000 to invest. Sure you are going to get a lot of people approaching you with crap, but you will also get some good ones.

    There are also some other forums out there, but rather slim pickings as far as forums go. Check out youngentrepreneur forum.

    If I were you though, I would look into investing into some information products online. I know everyone always talks about this, but with $1000 to work with, if you do it right you could easily turn that into $50,000+ in a year with an info product. In my opinion that is one of the highest yield investments possible.

    Also keep an eye out for media buying guys. They usually can take money and make more with it, if they are legit. I saw a guy post one of his methods on here a while back, and he said he was open for JV's etc. He was doing good. Might be able to find him if you search the forum.

    Any way you choose, you just gotta keep your eye out, be smart about how you search, and ask as many questions as possible.

    Hope this helps
     
  10. VinBed

    VinBed Regular Member

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    Occupation:
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    Use the following:

    crowdfunder.com
    angel.co

    You need to be an accredited investor, though. You can become accredited if you have $1m+ in net worth or make $200,000+ per year.
     
  11. VinBed

    VinBed Regular Member

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    The jobs act was passed but the SEC is still working out a few things, from what I've read. Sites like angel.co let in people wanting to make $1k investments, but everyone still needs to be accredited.
     
  12. travisle

    travisle Junior Member

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    Yep they are still dragging their feet! But definitely this year. (Or at least I hope)

    And just checked, angel.co is not really a place for people with $1000 to invest. You have to be accredited and make at least $200,000+. So its a little out of the range of someone with $1000. And most of the startups there are asking from the hundred thousands to the millions. Although the minimum that you can invest in a company on the website is $1000, you still have to be accredited.
     
    Last edited: Jan 3, 2013
  13. hatterftw1

    hatterftw1 Power Member

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    Like I said and Travisle mentioned I'm ideally not even interested in businesses yet even startups I'm more so interested in tech/information products like my software or website example, this is what I want to be involved in. Because a small investment like $1,000 is feasible but at the same time can really be profitable. So anyone out there know where I can find people developing apps/software/websites whatever that need money to get it going and will sell equity in it?

    Yeah I have already read up on this Jobs Act stuff, I guess it sounds like "soon" it will be in affect and then finally people not worth $1Mil can invest in startups lol.
     
    Last edited: Jan 3, 2013
  14. gmarch25

    gmarch25 Junior Member

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    This sounds cool but the one thing I don't get is how these websites would enforce the people with startups to actually pay people back who have invested into their company once they start to turn a profit?

    What's stopping someone from taking the money and running?