Why should you invest in a startup?
If you’ve acquired good wealth in your life, you may have heard the buzz around angel investing and considered the idea of investing in startups. Not only is it a blast to help innovative entrepreneurs, it also offers a chance to make superior financial returns.
Becoming an Angel Investor open the world of startup to you. It gives you an opportunity to invest in companies which have a chance of growing your capital from 2x to 2000x and help you manage your investment portfolio with best returns.
Angel Investing is a High Risk High Reward investment. It can give you huge returns, much more than mutual funds of real estate and it might become zero, so an intelligent Investor always balances his investment so he has Low Risk Low Returns investment in his portfolio along with High Risk High Reward assets.
5 Primary reason why
Huge returns are one of the core reasons why you should invest in the startups. Besides the returns, there are various other reasons for initiating the investment.
1. Higher Returns
Thoughtful decisions of investing in the startups can be hugely beneficial as the returns (above inflation) are higher than other types of investments. Furthermore, it diversifies your portfolio investments.
2. Recognition In The Market
The startups you have chosen if, in the future, get recognized in the industry. Then, this recognition acts as a catalyst for your fame too as you are directly related to the organization.
3. Lifetime Savings
Besides receiving returns, the investment is done to secure one’s future. Many investors seek companies who are thriving and expanding in the sector. By investing in startups like other veteran investors, you can collect large chunks of savings that can help to lead the life post-retirement.
4. Create Positive Changes
Green financing is nascent investment type, which is highly prevalent in the sector. Millennials contribute in the startups which envision to bring positive changes in the society. By opting the green financing, you can become a part of the positive societal changes done by the organizations.
5. Tax Benefits
The Government Of India has made Angel Investment more lucrative by providing Tax Benefits to all the angels which is another reason to invest and save taxes.