All you need to know to get started on Crowdfunding

[sahil-sorathiya]

What is crowdfunding?
To put it simply, its is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.

[sahil-sorathiya]

Why should you get started?

Learnings:

• It’s literally a shortcut to years of collective learnings in different geographies, different sectors!
• Imagine it as tuition fee for learning.

Impact / Fulfilment:

• It’s fulfilling to work around entrepreneurs who are full of optimism and energy. It’s contagious.

Returns:

• It’s one of the best asset class in the west & hopefully across the world soon (except bitcoin which we can say in hindsight)
• Returns are ruled by not so intuitive as the power law

[sahil-sorathiya]

Prerequisites to get started:

To be precise:

1. Credit Card
2. A self-declaration (online form) that you are an accredited investor
3. An account in one of the crowdfunding platforms (like Seedrs / Republic / Crowdcube)
4. $10

[sahil-sorathiya]

My Personal experience

So after starting in October 2018:

• 40% of all my savings are invested in startups
• 16.5% up at avg holding period so far is around 1 year
• 6X returns on my best investment followed by 3X
• 5 follow up rounds raised, 1 down round so far

[sahil-sorathiya]

How should You start?

Write a Hypothesis and test out:

1. Write about Why you want to invest in the company
2. Track the progress of the company via quarterly updates
3. Validate/invalidate your hypothesis
4. Refine your thinking process
5. Repeat!

My advice: Invest with a purpose and reason!

[sneh.baxi]

A thread on investing in startups (both sides of the coin)!

Paras Chopra (paraschopra)

And this one talks more about the risks, perils and reasons to stay away

Ritesh Banglani (banglani)