Why invest in startups

When you are a young professional with interest in technology and innovation, chances are that you will start thinking about investment opportunities sooner than later.

When you are a young professional with interest in technology and innovation, chances are that you will start thinking about investment opportunities sooner than later. Set aside all the crazy stories about investing in a soon-to-be unicorn startup of your brilliant friends (because if that’s your case, go for it!), what are your options?

First, you can join an investment/savings portfolio scheme your bank suggests. This is probably the safest and the most sensible option if you are ready to invest a fairly large amount of money & are ready to wait for several years before pulling your investment out.

Second, you can invest in the stock market on your own. Who didn’t dream about going back in time and buying shares of Apple or Microsoft for symbolic sums? However, you do need to understand well the investment context in order to time the dropping in / pulling out moments right, so unless you have some IB experience, it’s extremely difficult to build a diversified portfolio on your own - and time your exit well. Moreover, this kind of investment might require a larger starter capital.

And there is the third option, which is rather tailored to fit the millennial “do what you love” spirit. You might just invest in ideas (and companies that are behind them) in which you believe, and the best moment to do it is at the early stage of the company’s development. Today with current crowdfunding platforms you can invest in ideas that make your heart beat faster with a very modest starting capital. In many cases, you can become a part of a growing company without having to deal with the legal side of it, nor having to dedicate your career to it. Moreover, UK jurisdiction is particularly favouring startup investments with its SEIS program, that allows tax deduction and aims to partially reduce the potential risk of loss (you can read more on it here).

That - and the fact that it’s just very cool to own some startup shares - make it a reasonable investment strategy for young professionals with limited investment capital.

At Adverttu, we believe that mobility sector holds the future of urban development. We will hold a crowdfunding campaign ourselves with the support of Crowdcube in January 2019, with the entry capital as low as £10.

So, would you like to buy a new pair of decent headphones or rather become a shareholder in a prosperous startup? It’s your call !

Drop us a line on invest@adverttu.com, if you're still on the fence and would like to chat to us before making your final decision.

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