Nowadays, it’s nearly impossible to function without using any form of technology. The whole industry has influenced the economic landscape in ways no other industry has done before, and seeing how fast it changes and progresses, it’s safe to assume that the industry’s growth is basically unstoppable.
“There’s no denying that tech startups are the hope of the future.”
It comes to no surprise that a lot of individuals - aspiring entrepreneurs and generous investors alike - are taking their chances in the shark tank; even high-profile personalities are investing in startups. The competition is definitely tough, but if you’re an investor at this day and age, here are three reasons why it’s worth giving a shot.
An avenue for diversifying your portfolio
A smart investor knows better than putting his or her eggs in one basket. Being wary of your investments is key to surviving the industry, which is why balancing your portfolio by funding a fair share of established businesses and budding tech companies is a strategic move towards decreasing volatility and increasing your opportunities for higher ROI.
Another thing that entices investors to go for startups is the amount of equity they can purchase. For just 50% of shares or even less, they immediately become stakeholders of a promising venture.
“…balancing your portfolio by funding a fair share of established businesses and budding tech companies is a strategic move towards decreasing volatility and increasing your opportunities for higher ROI.”
The abundance of promising returns and potential
Uber, Airbnb, Facebook, even Microsoft - these are just a few of the biggest household tech names in the 21st century which started out from scratch. If not for the investors who believed in their potential, we wouldn’t be enjoying their services now. And for a USD1,000 initial investment? A USD 6 million return definitely isn’t bad.
Of course, not everyone is as lucky. Keep in mind that nothing is 100% sure when it comes to investing. But once you hit the jackpot, it goes without saying that taking the risk is definitely worth it.
You take part in funding the future
There’s no denying that tech startups are the hope of the future. Investors find fulfillment in helping these companies because most of these ventures are geared towards introducing innovative ideas that propel social change. Apart from being part of something revolutionary, funding high-potential tech startups also create more jobs which lead to a satisfied workforce and a healthier economy.