Startup Investing
I've recently begun dabbling in startup (or seed or angel, whatever term you prefer) investing. Apps such as Republic and StartEngine are bringing this incredibly high risk, possibly high reward investment vehicle to the non-accredited masses. I started looking into this early in the year and pulled the trigger on my first startup investment in April. I've since invested in six more startups. My goal is to keep my startup investments in the range of 1-2% of all of my various investments.

Startup investing is highly illiquid and very often will lead to a complete loss of funds. It's even more risky for us non-accredited retail investors. We don't have the same access to the company and their founders, business plans, financials, etc. as a VC would. However, if you find one that gets to the public markets or is acquired, you could just hit a 10+ bagger. I like the risk and will keep my expected losses minimal with moderation.

My current allocation is at ~0.9% so I have some room for one or two more investments over time.

For full transparency (the thing I like most about Commonstock), below are the companies I invested in. All investments are for common stock.

How do you feel about startup investing?
30%I'm actively doing it.
40%Not yet but maybe soon.
30%Never. Not for me.
20 VotesPoll ended on: 09/12/22
Austin Van Horn's avatar
Would be interested in seeing the returns you get on these investments in the coming years
Steve Matt's avatar
@austintv99 That makes two of us! lol My plan is to keep updating my overall returns on a quarterly basis and include my alternative investments (StartEngine, Fundrise, and Landa) so check back every quarter and who knows, maybe one will have gone bankrupt or taken off.
Lester Leong's avatar
I almost pulled the trigger on Rentberry but this market correction made me wait. FWIW, I still like them.
Steve Matt's avatar
@prometheus I actually was going to wait since their deadline is 12/31/22 but I figured may as well do it now since I liked the business and knew there was a chance they could end the offering early in the unlikely event they get max interest.
Conor Mac's avatar
Actively building a small private equity portfolio. Ranges from low ABV beer to brokerages.
Yegor's avatar
Starting research into start up investing via republic + doing private debt / VC investing but definitely more of a side interest compare to my actual portfolio
Eric Messenger's avatar
I don’t take unnecessary risks when it’s so easy to not lose money investing like I already do. That’s how my brother gambles, bets money on the underdog so he can hit the jackpot. I’ll take one in the hand while you go for two in the bush😉
Steve Matt's avatar
@wall_street_deebo fair enough, although I’m confident investing in startups will prove far more lucrative and better returns than cryptocurrency over the next 20 years, and that’s coming from someone who does own some crypto. Startups are far less risky than crypto in my view.
Eric Messenger's avatar
@interrobangbros you’re doing it wisely, understanding not to go all in on any riskier assets. If I had the extra capital I’d be right behind ya.

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