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Investing in a startup, or pretty much any business that isn't public, requires a significant amount of due diligence on the part of the investor. Even then, mo
by gwbas1c 5y ago
Investing in a startup, or pretty much any business that isn't public, requires a significant amount of due diligence on the part of the investor. Even then, more startups fail than succeed. Retail investing directly into startups, like how we can buy stock, would essentially be gambling.
IMO, it makes sense to do this through a proxy, like a mutual fund or other kind of investment vehicle. The investment vehicle would need to do a lot of the due diligence. Perhaps someone could do the due diligence before putting startups on their page to solicit investment?
Even then, motivations must be questioned. Sometimes startups only exist to be sold to a larger company; but once the acquisition goes through, there isn't much left.