Imagine that one day you decide to invest some of your money in startups (if you do not know what a startup is, I recommend you read our blog ), but you have heard that it is only for people of very high heritage, then you ask yourself, can I invest in startups ?, who can invest in startups ?.
It is true, in general the common factor behind the concept of investing in startups is that this kind of asset is “reserved” for people or institutions with high assets, in general. But later you can see that with platforms like Founderlist , more people can invest in them.
People who decide to invest in startups, in addition to obtaining monetary returns also contribute their knowledge and establish new links with people who are trying to change the world. These people are commonly called angel investors. There are also investment funds, commonly called "VC's" or venture capital funds, which are dedicated to attracting contributors, which can be people of high heritage or companies that want to diversify in the placement of their resources, in order to Invest in startups previously selected and examined by them. If you want to know more about venture capital, I suggest you read this article .
What happens if I am an ordinary person and want to invest in startups? The answer to that question is that it is very difficult to do it , but in Founderlist we make it simple and possible for you. However, before moving forward, you should know that investing in startups is risky and tends to be illiquid, this means that there is a high probability that my investment will finally be unsuccessful and in turn it may take a long time for it to succeed. , I benefited from this.
So can I or not ?
If you are not an accredited investor, usually, no . Being an accredited investor is very difficult due to the requirements that the different regulations require, but we achieve that both accredited and non-accredited investors can invest through us.
According to the SEC, an accredited investor is a person or business entity that is allowed to trade securities that may or may not be registered with financial authorities. To be entitled to such privilege, one (or more) requirements must be met with respect to income, assets, asset size, governance status or professional experience. Accredited investors include high-income natural individuals, banks, insurance companies, brokers and trusts.
On the other hand, non-accredited investors constitute the majority of the world's investors . When people talk about retail (or retail) investors, they often refer to uncredited investors. Basically, all those who have less than $ 1 million in assets, apart from the value they can have in their home, are uncredited investors.
Another difficulty is the country, it is complex to invest from different countries to startups, because of the regulations that exist in each one and we solve it.
Finally, the minimum amount of investment and the costs (which depend on the instrument and the organization for which I am managing my investment) of investing in startups are usually high and are not available to most of the world, a problem that we also solved .
In short, first investing in startups has an associated risk and second, not everyone can have access to invest in them. What solutions currently exist in the world if I am not an accredited investor? . Some startups in the world are helping to democratize the investment process and help new companies with their challenges in the processes of raising capital and seeking talent.
Founderlist, a crowdfunding platform that allows accredited and uncredited investors from anywhere in the world , to invest in Latin American startups with high growth potential (we are Chilean).
AngelList, a website in the United States where professionals, startups and investors can cooperate in a digital ecosystem to find jobs, raise capital and invest.
Republic, a United States website, where anyone under CF regulation can invest in startups.
Finally, if you want to know more about the investment process in startups, I invite you to read our FAQ .