How can I reduce risk in startup investing?

How can I reduce risk in startup investing?

To reduce risk in startup investing, consider diversifying your portfolio, conducting thorough due diligence, and investing in industries you understand.

What specific due diligence steps should I take?

Key due diligence steps include evaluating the startup's business model, financials, market potential, and the experience of the founding team.

Is it better to invest in early-stage or later-stage startups?

Later-stage startups typically have more established business models and lower risk, while early-stage startups offer higher potential returns but come with greater risk.

How much should I invest in a single startup?

It's generally advised to limit your investment to 10-20% of your total portfolio in a single startup to mitigate risk.

Are there any platforms that can help me find startups to invest in?

Yes, platforms like AngelList, SeedInvest, and Crowdcube can help you discover and invest in startups.