The most streamlined and efficient process to invest in startups is by using crowdfunding platforms.
These are various platforms listing startup companies looking for investments. Alongside giving you all the essential information you need about a company you’re thinking of investing in, these startup websites also ensure that all transactions go through the platform, giving you an extra layer of financial protection. With an array of opportunities available, you can build a diversified portfolio without worrying!
Many successful startups, such as Monzo and Revolut, started with investments via crowdfunding platforms, and many will have international links that you can use to navigate markets and territory. Some crowdfunding platforms have other benefits, such as an internal market, which allows you to sell your shares to other investors at any time.
Crowdfunding platforms can be tailored to a particular sector, so it’s important to consider where your area of expertise is before browsing platforms. They are typically led by successful entrepreneurs who excel in their fields, meaning that you can be sure that the startups they associate themselves with have a great outlook.
However, suppose crowdfunding platforms aren’t giving you enough control or enough of a hands-on approach. In that case, you may opt for networking, making your expertise in your industry well-known, and ensuring you are self-certified as a sophisticated investor as per the FCA can all result in entrepreneurs approaching you. This may even help you build more links with other entrepreneurs, allowing you a hands-on experience of a wide range of startups.