Source: Pixabay.com
This is the final article of our startup investment series, started with “4 Types of Investors Behind Startups“ and “Should you invest in startups?“
Just imagine it for a moment. Wireless in-ear headphones with smart, self-regulating noise cancellation technology that allows you to clearly hear what the other person is saying both in the park and on a congested boulevard.
Why has NOBODY thought of this before?
Source: Pexels.com | Photographer: Jens Mahnke
In the past few years, the terms “investment” and “investor” were supplemented with a host of new words like “pre-seed stages”, “seed stages”, “venture capital rounds”, “crowdfunding”, “peer-to-peer lenders”. All these terms are related to startups and the elaborate multi-layered system of startup financing that evolved from the straightforward bank loans of yore.
Today, we distinguish four main tiers of startup financing, depending on how far the company is in its development at the time of funding, how big the investment is, and on other factors.
Source: Pixabay.com
Slack, Lyft, Uber, Robinhood, Coinbase, Revolut, Airbnb. These are household names of successful companies that launched as a mere startup with a good idea and a smart business plan.
Having a startup and investing in a startup has become so trendy that the market is now oversaturated to the point where it almost seems like the world is about to run out of good ideas. So, is it really worth investing in a startup, however promising it may appear?