Why you should invest in a startup?

- BY Akshay Arora
Feature Writer, BusinessEx
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- Jan 24,2018
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10 Mins Read
The investment decision is not a task which anyone would take lightly as everyone wants to get good returns on their investments. Making an investment needs proper research and check out which investment opportunity has the highest probability of getting good returns. If you are thinking that investing in big companies is the best solution for your investment then you are wrong. The best solution is to invest in startups and small business. There are so many reasons for investing in startups but the most important one is that they have the potential to grow at a much faster rate than big companies.
Why is startup a good investment opportunity?
Growth Potential
If the startup that you plan to invest in is going to make a difference in the economy and has a great team then you should make your investment. If the business idea is great then its growth rate will be higher than any other investment opportunity. A startup is in its initial stages while most of the big companies have reached their maturity stage so it is obvious that their potential to grow will eventually be higher.
Innovation
Innovation always opens up new fields of business which makes it a potential investment. It is a basic understanding that something new always catches the eye of everyone. If a startup is bringing something new in a business environment then there are higher chances that this will be a fruitful investment opportunity. But these opportunities are hard to find so you better grab fast if you find one.
Diversify Investments
There is always a risk in investing in any businesses so it is better to diversify your investment rather than focusing only on one opportunity. The startups and small business are the right solutions for this problem as they need less funding than big companies and you can diversify your money into several business opportunities. This is a much safer approach than putting your whole money in a single opportunity.
Opportunities
There are myriad startup opportunities for you to select for your investment. As startups are in need of funding in order to carry out their functions efficiently and effectively in order to get the success that they hoped. The best way to find a startup investment opportunity then there are online networking platforms like BusinessEx to help you. If you are interested then register now on these platforms and find your opportunity.
Returns
There are higher chances of getting good and fast returns than investing in other businesses. Startups growth rate is the fastest so the returns eventually rise at a much higher rate. Everyone make the investment to get faster and higher returns so startup is the best opportunity.
Success Story
India’s largest e-commerce platform Flipkart was launched in 2007 with a minimal capital of Rs.4 lack has now raised around $7.8 billion. This position that the startup has achieved is all because of its first investment of $1 million in 2009 is received by Accel India and Tiger Global. As the time passes by both the investors have already invested over a billion in the company now because of the growth rate of the company and increase in demand with time. Both the investors have made good returns through this investment.
Conclusion
There are so many reasons to prove that startups are the right choice for investment but at last, this is your money and you must understand what is best for you. If you plan to invest in a startup or a small business then there are online networking portals like BusinessEx that helps investors to find their right business opportunity.
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