Thursday, December 8, 2016

Invest In a Domain You Know; Startup Investing Tip


Investing in startups in a risky business, but the best thing about it is that it yields the outsized return if invested in the right idea.

Well, this doesn’t mean you should refrain from investing in startups; rather it requires you to invest while minimizing the risk.

One of the best ways to reduce risk in startup investment is to understand the market that startup operates in. With the better market knowledge, you can evaluate the idea, revenue model, challenges and opportunities. Hence, you will have a better sense when projecting the potential success of the venture.

Besides, knowing the domain, you must also make sure that the business has a scalable model so that it can grow to a level in which you will be able to get your money back as an investor.

Also check, how investigating founder’s profile can help reducing the risk on startup investment.

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