I have $10k to invest in a startup, what should I do? | Hacker News Reader

I have $10k to invest in a startup, what should I do?

1 pointflavmartins15 comments

I have $10k to put into a startup. I don't want to put it into a 401k, IRA, stocks, etc. I don't want it in the bank, savings account, or in my mattress.<p>I want this in a startup or a couple of startups. How do I start down the path of angel investing? How can I get connected with developers who are looking for some seed money?<p>What would you do with $10k today to invest in technology?

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$10K is not serious and you're most likely going to lose it. That's not me being a jerk, that's me being realistic. Statistically about 8 out of 10 funded companies are going to fail. VC's make their money by playing the numbers. They need to get their money back from the other 2/10. You don't have that option if you're only playing with $10K. Angels are people who know this and can afford to lose the cash they put up, they do it because they love it not because they need more money. Do more research before you flush your money down the toilet.

Thanks for the advice. Solid. Much appreciated.

I am in the same position as you: Want to invest money in a startup. So I had a look at different seed investments/crowd funding sites like [1] but often they are heavily tied to your physical location cause of funding/financing laws in your country. Found a couple of german sites that act as a funding mediator which looked quite nice: They analyse businesses, providing regular business insights, earnings, spendings and so on. But mind you, I am a total beginner with that so I am easy to impress.

[1] https://www.seedinvest.com/

Do you have links to these German sites that act as funding mediators? Thanks.

This [1] (in German) article sums up some. While [2] is a huge list of German/EU/Int' platforms. Naturally both lists overlap.

[1] http://t3n.de/news/deutschsprachige-crowdfunding-plattformen... [2] http://leanderwattig.de/index.php/2010/10/22/liste-mit-crowd...

You need to be an "accredited investor" to invest in startups (assuming you're American).

I would look locally to find a startup you find interesting and join as a co-founder, where you bring capital among other things.

If you are a "friend" or family you don't have to be accredited.

When JOBS Act regulations are drawn up later this year, non-accredited investors will be able to invest as well.

On the other side, as a founder, it's much better to accept investment only from accredited investors, since non-accredited can sue you (or so I'm told).

What are your criteria for investing. Want startups focused on certain core competencies? Or maybe local to you?

You have to remember as an investor, you need to be bringing more than money to the table.

I would suggest going to Co-Founder Wanted meetups or FounderDating. Go to a startupweekend or Lean Startup Machine event and make relationships with the more promising entrepreneurs you find there.

Thanks for the suggestion. Yes, those type of events would be a great idea. I hadn't thought about that.

This is a serious question. Please...I would appreciate serious answers.

Have a look at some of the crowdfunding platforms

How about foundersclub.com ?

put your email in your profile.

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