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Advice From Millennial Entrepreneurs

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millennial entrepreneurs

Millennials are underrated when it comes to work ethic. As the biggest age group in the country at 80 million strong, entrepreneurs sprout from all over, creating jobs for a variety of industries. Success comes in many forms, and we at Owner’s Magazine had the opportunity to talk to a few successful entrepreneurs about culture, motivations, and how to achieve your goals. Many of these entrepreneurs are founders and CEO’s of their own businesses, and they are here to give some advice on how to grow.

 

Greg Star, Founding Partner of Carvertise

Carvertise

“Why finding a mentor is the worst advice I ever received. You may be confused by this title. After all, a mentor is crucial for personal development. They can provide hard earned wisdom that only comes from experience facing similar challenges that you are up against. Additionally, a mentor can open up a network of contacts that you would not meet otherwise. So why would finding a mentor be considered bad advice? Isn’t this a no brainer? The answer is no- and here’s why.
Finding a single mentor limits your thinking. You should be trying to find multiple mentors. Here are three important benefits you get from surrounding yourself with a team of mentors as compared to one.
1. Different viewpoints– Having several mentors with different specialties to bounce problems off of will give you broader insight on the problems you are facing. Your one mentor may have a biased that can only be seen if your getting multiple points of view.
2. Larger network– A mentor can open up a lot of doors to a lot of key introductions for you from a personal and professional standpoint. Thus, the more mentors you have, the larger your network becomes.
3. It teaches you how to ask for help– This is probably the best lesson for finding multiple mentors. The act of constantly reaching out to different people asking help is an incredibly important skill. It teaches you to put your ego aside,  which is incredibly important in developing personally and professionally. I personally reach out for help 3-4x a month to people who I think I can learn from, and the benefits have been exponential.
Bringing it together:
Next time someone tells you to find a mentor, stop them, and let them know why they are wrong!”

Andrew Nakkache, Co-founder & CEO of Habitat LLC

Habitat

“7 core attributes or traits that I think are important for entrepreneurs (at least for me):
Share Ideas – I’m big on sharing a raw idea with everyone. Ideas are typically worthless, and the only way they get better is through talking to enough people (and customers). 9/10 ideas I have are terrible.
Delusional Optimism – You need to have a deep-seeded belief that you and your team are exceptional, and you are the ones that are going to fix the problem you’re solving.
Everlasting Paranoia – Simultaneously, you have to believe that what your building is worthless
Shameless Persistence – Again, tell everyone your idea and ask everyone who you think can help..for help. Most people like to help entrepreneurs, those relationships can turn into mentors.
Impulse Control – You need to have the ability to resist temptation.
Level Headed – This ties into Impulse Control, you’re going to have a lot of internal battles. It’s important to keep a level head, and your team needs to see that.
High Integrity – Always be thankful and courteous to everyone you meet. You never know how someone may be helpful down the road.”

David Feinman, Co-founder & CEO of Viral Ideas

Viral Ideas

“For new entrepreneurs, it is important to just get started, to do something that you can take to market. Be it a product, a consulting concept, or something small, that you are able to take to a few customers that are willing to pay you something, for your idea or for your concept so that you can test, learn, and grow from that initial starting base, and really build on top of that.”

 

Benjamin Fuller, Associate of Montgomery McCracken’s Business Department

Montgomery McCracken’s Business Department

“While every situation is different, I often recommend that the partners in start-ups have honest and frank discussions their goals. I find that they rarely have accounted for disagreement and difficult circumstances that are likely to arise in any business. It is always easier to have a discussion about these issues up front.
With respect to growing companies, I counsel them on how investment may dilute their equity. For founders of any company it is important to understand what they are giving up in order to gain investment. The bottom line is it’s important to include your lawyer in these types of conversations early and often. We often act as the facilitators of these discussions and can provide specific insight sometimes based on “war stories” – both good and bad – from past representations.”

 

 

Stephen Blackwell, Chief Strategy Officer of the Billboard-Hollywood Reporter Media Group

Billboard-Hollywood Reporter Media Group

“The Great Recession created a lot of uncertainty for my generation and how it viewed itself and its prospects. The status quo didn’t appear sustainable at the time and it forced a lot of us to think outside the box – and ultimately create jobs during that time. To me, success has been about educating yourself at length about the industry you’re entering and then taking the extra time to get creative. Find that niche your industry is looking for. It’s probably hiding in plain sight.”

 

 

Tony Cho, President of Metro 1 Properties

Metro 1 Properties“To me, culture is everything. That is why most, if not all, of our agents and employees chose Metro 1 over other more established companies. The culture we curate and create exudes and exemplifies who we are and who we aspire to be in the community. Providing regular yoga and meditation classes for staff and agents builds camaraderie and rapport between and among the team. Culture is key in business.”

 

 

Erica Dias, Co-Owner of The B Firm

The B Firm

“Never give up! Dreaming isn’t going to get you anywhere. DOING will! You’ve got this! Faith It Until You Make It!”

 

 

Ryan Shear, Principal of Property Markets Group

Property Markets Group

“I’ve found that so much of what dictates success in real estate development as a profession and an industry ultimately boils down to effective management, whether it’s managing time, resources, personnel, etc. From the beginning, I recognized an opportunity to do things at PMG differently from the typical development shop. We have a great blend of really experienced industry veterans working hand-in-hand with ambitious young professionals that has left us with a very atypical culture relative to the other companies in our field. We have fun together and support one another, but we are also constantly pushing. When it comes to incentivizing employees based on project performance, I think we are more aggressive than just about any other developer of our size and that gets the team to reach for that higher gear. I am very demanding of my team, but they have become even more demanding of themselves and that is what makes me most proud.”

 

 

Karen Elmir, CEO of The Elmir Group

The Elmir Group

“To maximize sales, one must be creative and think outside the box. Push beyond ordinary marketing tools by investing in your listing and always look for new channels of communication and sales. Remember, it takes money to make money. Additionally, professionalism and dedication are key. Make sure to consistently be knowledgeable about your product, as well as the state of the market and its trends.”

 

 

Ali Grant, Founder of Be Social

Be Social PR

“As your business expands, you will soon understand the need to scale efficiently. It can be difficult giving ownership to others, but putting trust in your team allows you to conquer, grow, and scale.”

 

 

Elizabeth Convery, Founder of Very Real Estate

Very Real Estate

“I have been fortunate to build my entire book of business at VERY Real Estate on word-of-mouth referrals. It is my belief if you do right by one person, and put their needs above your own, treating them with respect, dignity, and acting in a thoughtful way on their behalf, that you leave a lasting and memorable impression. Naturally, when people have a positive experience, they tell their friends and your business grows like a tree. I strive to always have people smile when they hear my name. Making someone feel special is the key to building trusting, lasting relationships and having a reputation that leaves people feeling great.”

 

 

Zubin Teherani, Co-Founder of LeagueSide

LeagueSide

“Sell your idea before you sell your product. Youth sports sponsorships have unique advantages over other forms of marketing. They provide a captivated audience for hours every weekend, guarantees digital and in-person impressions to the same group of families, and supports the families you’re marketing to by subsidizing their costs. We always, always, always, start by selling the merits of sponsoring youth sports organizations before we get into how it works. Selling the big picture helped us close big clients and investors in our early days before we ever built a product.
“Fake it till ya make it” – When we started LeagueSide, we focused on selling before we ever built a product. We pitched clients, youth sports leagues, and investors and got yeses before we committed to LeagueSide full-time. This validated that this was a business worth pursuing, saved us months of time, and gave us perfect clarity of what we needed to do next.”

 

Jenny Cipoletti, Founder of Margo & Me

Margo and Me

The Shift: I started reaching out to stylists to work with them on weekends. I worked PR during the week and started styling on the weekends with whoever needed an assistant at the time. From there, I started to realize I really enjoyed the styling more. I woke up at 25 and I had a grocery list of all of these amazing things: my health, my boyfriend, and my puppy, but I just wasn’t happy. I didn’t know what was wrong with me. I was alive but I wasn’t living. I was just going through the motions.
That Quit Moment: I said to myself, if I wake up at 30 years old and I’m still doing this, it’s not going to be pretty, so I left my PR job and went back to school. I did the nine month program at FIDM for fashion design, and it was incredible. For years and years, I hadn’t learned anything tangible applicable or creative — that changed overnight. I’d totally forgotten what it felt like to be a student again, totally immersed in a creative culture and constantly inspired by my teachers, my peers, and my work. I was thrown into a design program where you learned how to sketch, sew, drape, and create patterns. It was like this bubble just burst inside of me. I suddenly realized that this was what I’d been missing all along.
Start, Just Start: In addition to going back to school, I launched Margo and Me as a way to showcase what I was designing (Margo is my french bulldog). It started out as just a showcase for the dresses I was designing, but then I started posting outfits and styling tips as well. My husband is a director and was the one who originally inspired the idea because he was testing his new camera lens so I asked him to take a picture of me wearing one of my outfits. There were a few trendsetters out there, but this was before the huge blogging boom. There weren’t really many people doing it at the time. It was a whole new world.”

Kathleen McCabe, Founder of Syreni

Syreni

“In the early stages of starting a company the best way to stay motivated is hold yourself accountable by telling as many people as possible about what you are doing. This will help you gain confidence and allow you to practice your natural sales pitch while building your future network. Get a web presence early and publish your anticipated launch date. The excitement you see from your early followers will motivate you to keep going and not give up.”

 

 

Hayk Tadevosyan, Insurance Agent at State Farm

State Farm

“I always go back and use numbers to make things simple to understand as I strongly understand that numbers don’t lie. A powerful statistic and a very familiar one to business owners is “9 out of 10 businesses don’t make it past year One”, well what happens after year one?
Another interesting statistic, half the business owners that make it past year one don’t see year three and half of who makes it past year three don’t see year five…. Why is that?
During the starting phase of a business if you are part of the 9 out of 10 that doesn’t make it, it’s due to the fault of the person in charge, the business owner. You didn’t work hard enough, weren’t committed and were not putting in the hours. The only “silver bullet” in business success that I’m aware of is good old fashion Hard Work. SAME can be said by every successful entrepreneur I know.
The problem with year 3 is our business outgrown us in volume. As an individual there are only so many meeting we can attend, so many calls we can make, so many things we can manage. If we don’t duplicate ourselves, and in many cases duplicating ourselves several times, we will not keep up with the growth. When a demand exceeds the business structure, the business falls apart, which is why it’s crucial to start training and developing a team right away, and the right people take a while to develop. If you ask yourself the question of, “How long it took us to learn a skill and perfect it?” If the answer is years, then why do we get frustrated with our managers if they don’t get it right the first time and fire them?! We have to be patient and spend a lot of our time coaching, although sometimes we feel that time is better spend closing more deals. That’s a huge misconception, training and developing a team is the highest ROI time we can spend in a business.
Usually by year 5, the business owner is no longer working for money, but more for balance in life. At this point, we have to realize we don’t need a job and the business is not built to create a job for the business owner, it’s built to create jobs for others. If by year 5 the business owner doesn’t have a manager that manages his team and a team that manages the customers, there is a high chance of the business owners to get negative with the business, which takes away creativity, and with lack of creativity, there is no passion, and without having passion, business dies, either right away or slowly till it becomes more expensive to maintain the business than to just close doors.
There are a lot of moving parts to making a business work, but if I were to give anyone advice on what to focus on is this time schedule.
Year 1 – Be the hardest worker with longest hours. Become what you are looking to recreate as far as future employees in the business.
Year 2-3 – Since you are a machine, look to duplicate yourself. We always attract what we are, not who we want. So, if you are a hard and smart worker you will find a good team, if you don’t, then you need to ask yourself if you are leading by example.
Year 3-5 – One of your team members will shine more than the rest, put them in charge and train them on how to train others. Train the team to answer to the manager, so you only answer to your manager. It’s much easier long term to answer to few sharp leaders within your organization than thousands of clients. At this point, the machine is running, you have lots of time to spend on other business ventures, hobbies, family etc.
Your team is making lots of money and you have created good jobs in the community, and the business doesn’t stop growing as you are not a one man show.

 

Jie writes about influencers and startups in various industries. She is a designer turned techie, and when she is not writing, you can find her in her workshop working on her next big project.

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Netflix Gaming Is An Embarrassment

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Netflix is having a hell of a time, ain’t they? The once innovative content titans of Silicon Valley are now playing a desperate game of catch up. They’ve lost subscribers, they’re introducing commercials, and now they’re trying to promote the awkwardly invested Netflix Gaming. 

Netflix Gaming has been available for less than a year, and subscribers do not appear to be interested. According to Apptopia, less than one percent of Netflix’s subscribers have engaged with this new content. 

And yet, Netflix plans to increase its game catalog from 24 to 50 by the end of 2022. We just have one question:

Um… Why?

A letter to shareholders revealed that Netflix considers Epic Games and TikTok as competitors. Call me crazy, but I would have guessed that Hulu, Disney+, and HBO Max would be more appropriate competitors. 

It’s like hearing Applebee’s call Wendy’s a competitor. They’re not really the same thing, are they? 

Fortunately, I am not among Netflix’s shareholders. If I were, I’d probably question the direction of this strategy. Tom Forte, D.A. Davidson senior analyst said on the matter: 

One of the many advantages to Netflix in pursuing the strategy is the ability to drive engagement beyond when the show first comes out on the platform.” 

Mkay. Seems more like a marketing strategy than an argument for why gaming is the direction should go in. Maybe don’t spend $30 million an episode for Stranger Things? It was a pretty big hit when it was just $7 million an episode. 

In this difficult time for Netflix, the company’s COO Greg Peters has one take on this strategy: 

We’re going to be experimental and try a bunch of things.

Okay, that’s not particularly reassuring. 

I would say the eyes that we have on the long-term prize really cater more around our ability to create properties that are connected to the universes, the characters, the stories that we’re building.” 

Alright, I can get behind that. World-building and fan-favor is often fun and super engaging. Whether its memes or parodies, fans love to play around with their favorite series and movies. Netflix has clearly noticed that a lot of fans share these experiences on platforms like TikTok. 

Can Netflix’s head of external games, Leanne Loombe, offer more insight into why gaming will be a worthwhile investment for the company? 

We’re still intentionally keeping things a little bit quiet because we’re still learning and experimenting and trying to figure out what things are going to actually resonate with our members, what games people want to play.

Okay so, no. She can’t offer more insight. 

Why can’t Netflix invest more in series that people will want to watch? Why cheap-looking games? 

Netflix Gaming Wants In On That Sweet Mobile Gaming Money

Ah, of course. Mobile gaming. Netflix saw the now decade old Candy Crush success and thought “us too.” 

Netflix recently acquired Finnish game developer Next Games for a whopping $72 million. This isn’t some cute little side hobby – this is a real, serious investment for a company best known for zombie-like binging and code for hooking up. 

This is head scratching, to say the least. Netflix is known for upending the television and movie industry. Experts in the field warned that the major networks (NBC, CBS, etc.) were going to catch up. Now, they have. You see Peacock, Paramount+, Disney+, and more

How did Netflix plan the coming competition? By throwing money at anything and everything. 

Co-CEO Reed Hastings said this about the company’s latest investment in gaming:

We’ve got to please our members by having the absolute best in the category. We have to be differentially great at it. 

“There’s no point of just being in it.” 

It’s no wonder that Netflix is in trouble. I have zero doubt that Netflix Gaming will be an utter failure and total embarrassment. But, you do you girl.

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10 Subscription Based Services Business Owners Need to Try in 2022

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Over the past decade, subscription-based services have taken the business world by storm. Cloud-based infrastructure makes it easier for businesses to start, scale, and succeed. Paying a simple regular fee to use a software or service helps keep all your expenses in order.

Nobody wants to get tangled up in too many subscriptions. And with so many services on the market, it’s easy to end up with more than you need. That’s why we’ve assembled 10 great subscription based services for your business needs.

1) Hive – Subscription based project management tool

Project management is one of the areas where cloud-based tools come most in handy. Real-time collaboration is a great way to keep track of everyone’s work and ensure that it all gets done.

Hive offers just that. On top of task management and time tracking, they offer a variety of views to help each team member visualize their work the way they see fit, whether it’s as a kanban board, Gantt chart, calendar, or table.

There are plenty of great project management tools to choose from, but Hive’s versatility puts it over the top. They offer quick integrations, automations, and even a built-in messaging system.

Pricing: Unlike the rest of these services, Hive only has a single paid subscription plan. They offer three options:

  • Solo – Free of charge, for individual users.
  • Teams – $12/user/month. Includes shareable forms, an in-app calendar, and Zoom and Slack integrations.
  • Enterprise – Bespoke plans for enterprise customers. Include flexible add-ons, heightened security, custom analytics, and dedicated support.

2) Omnisend – Subscription based ecommerce marketing service

Marketing solutions aren’t exactly hard to come by, but what if your company has specific needs? For ecommerce brands, that’s where Omnisend comes in. This SaaS has everything you need to create successful, automated email and SMS marketing campaigns.

Tools like sign-up forms are geared directly towards ecommerce. They offer integration with all the major platforms, including Shopify, WooCommerce, and dozens more. They also have some pretty extensive analytics tools to help you keep track of your campaigns’ success.

Pricing: Omnisend comes in three tiers:

  • Free – $0/mo. Reach up to 250 contacts. 500 emails/mo.
  • Standard – Starts at $16/mo (pricing based on contact list size). 6,000 emails/mo.
  • Pro – Starts at $59/mo. Unlimited emails. 3,933+ free SMS credits.

3) Identity Guard – Subscription based data theft protection

Identity theft protection services are often geared towards individuals and families. But while security may start at home, your business’ data is just as precious.

If you’re looking for data theft protection for your business, look no further than Identity Guard, an AI-driven subscription based service by AURA. They offer robust data breach protection as well as employee protection plans, all backed by IBM’s iconic Watson AI.

Pricing: Breach protection comes in two plans:

  • Value – $36/year per activation code
  • Total – $120/year per activation code. Includes bank account and credit monitoring.

Employee benefit plans are custom-built.

4) Zoho CRM – Subscription based CRM platform

Zoho offers a staggering range of cloud-based software solutions, including email, customer service, docs, HR, and much more. But their first, foremost, and perhaps best offering is their customer relationship management (CRM) platform.

Zoho has great customer solutions for businesses big and small. You can micro-manage operations with their detailed analytics, or streamline your process with automated workflows. On top of all that, it’s totally customizable, so you can create your ideal workspace.

Pricing: Zoho’s CRM comes at five tiers:

  • Free – $0. Includes up to 3 users, essentials like leads, documents, mobile apps.
  • Standard – $14/user/month. Includes automated workflows and custom dashboards.
  • Professional – $23/user/month. Includes real-time notifications and inventory management.
  • Enterprise – $40/user/month. Includes AI, mobile SDK, advanced customization.
  • Ultimate – $52/user/month. Includes advanced BI and highest possible feature limits.

In addition, you can buy Zoho CRM Plus, which combines 8 other Zoho services, for $57/user/month. Bigin, a pipeline-based CRM for small businesses, starts at $7/user/month.

5) HubSpot CMS Hub – Subscription based content management system

Like Zoho, HubSpot offers a wide range of software solutions for businesses, which they call “hubs.” You can buy these hubs individually according to your needs or combine them for discounted bundle pricing.

Their content management system (CMS) is one of their more impressive hubs. It includes handy tools for secure website hosting and building, including a drag-and-drop editor and mobile optimization. On top of building websites, HubSpot makes it easy to scale with multiple plans and performance monitoring.

Pricing: HubSpot CMS Hub comes in four plans:

  • Free – $0. Allows for 1 blog and up to 25 web pages. Includes analytics, hosting, SEO, drag-and-drop editor.
  • Starter – Starts at $23/mo. Includes 50 web pages, ad management, URL mappings, payment support, reporting dashboards. Removes HubSpot branding from site.
  • Professional – Starts at $360/mo. Allows for up to 100 blogs and 10,000 web pages. Includes custom analytics, advanced SEO, dynamic personalization, content staging, video hosting, site tree.
  • Enterprise – Starts at $1,200/mo. Includes highest limits on all features, custom objects, site performance monitoring, web apps, sandboxes, permissions.

A 14-day free trial is available. Add-ons such as custom SSL and limit increases can be built into your plan.

6) Penji – Subscription based graphic design service

Content management is one thing, but where do you get the content itself? When it comes to graphic design, Penji offers professional-quality designs on a subscription basis.

With Penji’s unlimited model, you can get as many designs as you need. Their plans cover everything from logos to social media graphics. They even design websites and apps. With a global team of full-time designers, they deliver quality designs in a matter of days.

Pricing: Penji offers three plans:

  • Pro – $499/mo. Includes unlimited graphic design, illustrations, logos and branding.
  • Team – $699/mo. Includes unlimited web designs, app designs, presentations, and animated graphics.
  • Daytime – $999/mo. Includes USA daytime designers, same-day turnaround, and a dedicated art director.

All plans come with a 30-day money back guarantee.

7) Rippling – Subscription based HR and IT cloud service

This enterprise software solution is one of the best options out there for payroll maintenance, but it’s got much more than that. It combines workflow automation with HR and IT tools, helping enterprises streamline their employer-to-employee processes.

If you’ve been making use of this list, you’ll be especially happy to hear about Rippling’s app management. You can set up, manage, and disable employee apps in one simple place, ensuring that you’re using everything you need and nothing extra.

Pricing: Unfortunately, Rippling doesn’t offer transparent pricing on their site. Because they cater to enterprise customers, they offer quotes based on businesses’ precise needs. At the very least, their core platform costs $35/mo, with an additional $8/user/mo for payroll services.

8) Moz Pro – Subscription based SEO tool

Moz was founded as SEOmoz in 2004 as a site for some of the world’s earliest SEO experts to share their research. Basically, they wrote the book on SEO.

Moz Pro isn’t the cheapest option for SEO on the market, but it uses its history of experience to its advantage. They offer robust, eminently useful data to give your business the search engine boost it needs, crawling your site to precisely pinpoint issues.

Pricing: Moz Pro offers four plans:

  • Standard – Starts at $79/mo. Includes 3 campaigns, 300 keyword rankings, 60 tracked URLs, 100k page crawls per week.
  • Medium – Starts at $143/mo. Includes 10 campaigns, 1,500 keyword rankings, 200 tracked URLs, 500k page crawls per week.
  • Large – Starts at $239/mo. Includes 25 campaigns, 3,000 keyword rankings, 500 tracked URLs, 1.25 million page crawls per week.
  • Premium – Starts at $479/mo. Includes 50 campaigns, 4,500 keyword rankings, 1,000 tracked URLs, 2 million page crawls per week.

9) Tableau – Subscription based business intelligence service

You can have all the fancy subscription based software in the world, but it won’t get you anywhere if you’re not paying attention to what works. Tableau is a leader in business intelligence (BI) and analytics. They offer a robust array of digestible data to help your business work smarter.

Tableau is trusted by customers ranging from Whole Foods to Pfizer, Nissan to Charles Schwab. Powered by Salesforce, they also offer integrations with SQL, AWS, and dozens of other cloud services.

Pricing: Tableau offers three cloud-based plans for teams:

  • Viewer – $15/user/mo.
  • Explorer – $42/user/mo.
  • Creator – $70/user/mo.

They also offer server-based plans (on-premise or public cloud), a Creator plan for individuals, and embedded analytics.

10) Bit.ai – Subscription based service for workplace collaboration

The final piece of the puzzle that brings your whole business infrastructure together: collaboration. Plenty of cloud-based offerings include collaboration tools, and many businesses use free tools like Slack and Google Docs to power their communication.

Bit.ai combines all these features and more. Think of it like a document editor that’s also a content manager. It lets businesses share, create, and keep track of the content they put out, all with robust communication. They also integrate easily with tools like Tableau, OneDrive, Google Suite, Miro, Trello, Facebook, and more.

Pricing: Bit.ai offers three plans:

  • Free – $0. Allows for up to 5 members, 50 documents, 1GB storage. Includes content library, integrations, collaboration tools.
  • Pro – $8/member/month. Allows for unlimited members, unlimited documents, 500GB storage. Includes export, bulk import, version history.
  • Business – $15/member/month. Allows for unlimited storage. Includes trackable documents, priority support, engagement analytics, guest access.

Bit.ai also offers custom plans for enterprise customers.

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Thinking of Investing in An Early-Stage VC?

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venture capital

Do you find yourself asking, “should I invest in early-stage VC?” If so, you’re not alone. Venture capital has become one of the most popular ways to invest in high-growth startups. It offers high returns and the chance to join the founding team of a company before anyone else. With venture capital, you have not only access to top-notch business management but also an opportunity to build your portfolio.

However, due to its early stage, venture capital investing is not for everyone. Those who are looking for ways to make money fast should consider other options first. Think about it: what do investors require in order to fund a startup? An answer that’s likely yes will do it again—at least in this case. The same can be said about the minimum investment required by venture capital firms—it depends on their target sector or geography. This article will help you understand what you need to know before investing in venture capital.

What is venture capital?

Before we tackle the answer to the question, “should I invest in early-stage VC,” let’s discuss the basics of venture capital.

Simply said, venture capital is the funding of new businesses and expansion. That said, venture capitalists provide funding for startups at an early stage. They see potential in ventures that are often in the “uncertain” stage of their growth and usually lack funds. They provide the necessary capital to help companies realize their full potential. In addition to that, financial and managerial resources may also be offered.

Insider Monkey says the biggest VC companies in the world in 2021 are Google Ventures, Insight Partners, Bessemer Venture Partners, Index Ventures, and Sequoia Capital.

Why do people invest in venture capital?

person presenting something

The main reason people invest in venture capital is to gain a high return on their money. Another reason is the chance to build a portfolio of investments. For instance, some investors are interested in the high level of skill involved in the management of a venture capital fund. Some investors, on the other hand, want to be part of launching new products and services.

How does a venture capital firm operate?

VC firms are a unique blend of investment and management. They begin by identifying, researching, and screening a large number of high-potential companies. After evaluating these startups, the VC firm decides which to fund. It then hires management teams to run its companies. As mentioned above, the VC firm provides not just financial support but also expertise and advice. After all, the success of the startup means investment growth.

So, here’s the million-dollar question – should I invest in early-stage VC? The answer lies in whether you can stomach the risks. One of those risks is losing your entire investment. For example, a VC firm can fail due to bad investment decisions, poor management, or even bad timing. If you’re ready to go through these risks, however, then a VC investment may be for you.

Why should I invest in early-stage VC?

If you’re thinking of putting your money in a VC firm, some believe that now is the best time to do it. After all, some VCs have grown to be household names over the last 20 years because of their success. In addition to that, VCs have made a reputation for investing in early-stage SaaS ventures with low startup valuations.

But here’s what should be the biggest trigger for you to consider VC investment: global equity prices correction. Due to geopolitical instability, inflation, and many other factors, the economic downturn can be inevitable.

At the same time, many startups today are building products with world-changing potential. And given the high quality of these products, these startups can survive – and even thrive – in recession-like scenarios.

Given these two elements, many startups may be at a “discounted” valuation at the moment, and it would be wise to strike while the iron is hot. After all, VC is one of the most exciting ways to invest in high-growth startups with a potential for high returns.

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