My answer to How do I invest in seed round as a small investor?
Answer by Raad Ahmed:
If you aren’t a confident investor then it may be better for you to link up with seasoned investors that can help guide the way. You could become an angel investor since it’s typical for these folks to invest smaller amounts in startups.
A few other pointers:
- Invest in something you understand. Focus on a business that you have some experience with whether through work, education, or independent research.
- Invest confidently. If you are unsure, wait until you are. Confidence may come from learning more about the industry or simply talking to the founder a bit more about their business.
- Start small. It sounds like you are interested in investing small, which is good if you aren’t sure about the process. You will likely learn a lot in the early days of investing that no book or Quora answer can provide.
- Don’t jump on the first opportunity. Unless of course, its the right one. Think about the pros and cons of each investment opportunity and take your time when it comes to handing over your funds.
- Understand the legality of all contracts. As an investor, you will likely become part of some contracts and agreements. You should understand exactly what you are getting into. An attorney can help.
If you’d like more information about the legality of investing (things to look out for, contracts, agreements, etc.) thencan help. Our business attorneys are highly skilled and well-versed in startups and we’d be happy to set up a consultation with you. Check out our website and let us know if we can be of assistance.