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Why Should You Invest in Startups?

by Richard N. McMahan
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Although the public sentiment on startups waiver between thinking about them as gold mines where you can invest a decent amount of cash in and get 100 times the returns and thinking about them as just another scam that people waste money on. While it is true that a decent bit of startups fail, and it is by no means easy money, there are undeniable benefits in investing in startups.

There Isn’t a Single Investment Type that Promises the Same Rate of Returns As Startups

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Whether you invest in government bonds, publicly traded shares, oil, or foreign currency, none of these types of investment promise anywhere near the rate of return startups give. You can expect a modest rate of return of 3 to 10 percent each year from those investments, while you can expect 300% or maybe, even more, returns every year if you invest in a successful startup. This more than makes up for the risks involved in investing in a startup.

You Have More Access to Information About Startups Than Ever Before

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Recently, with the advent lot of companies like VNX Marketplace that are specifically created to help venture capitalists learn more about startups and their prospects, someone investing in startups now has access to more markets, more ideas, and more information than ever before. With this information, you can accurately assess startups and only invest in companies you personally trust and think will succeed. This helps you minimize the risks, which is the greatest impediment that prevents people from investing in startups.

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