We believe it's better to invest small amounts in multiple startups. Because the distribution of returns from startups is highly skewed - meaning that the majority of startups fail, and most of the profits come from a few big successes - you are more likely to make a profit by investing in a number of startups in the hopes that the successes of a few outweigh the losses of the rest.
Articles in this section
- Should I invest with borrowed money?
- Is it sensible to invest my money in one investment opportunity or is it better to spread it over multiple opportunities?
- Should I invest all of my money?
- What are the biggest risks involved when investing in a start-up?
- Is it possible to lose more than my initial investment?
- Is it safe to invest in small businesses via loan crowdunding?
- Is it safe to invest in start-ups and small businesses via equity crowdfunding?