Angel Investing on Autopilot

Once I reached accredited investor status there were several big opportunities that opened up and I had the capital to try some out.

Angel investing is usually for someone stuffing big sums of money into start-ups and hoping that that company makes you rich.

I found a cheaper way to do that with less risk.

A company called SeedInvest.

SeedInvest is an equity crowdfunding platform. Companies can come to SeedInvest and make a pitch to be selected to raise funding.

Two great things about this company. First off, they do all the leg work. After their exhaustive screening process, only about 2% of companies are excepted as potentials for investments. This takes much of the guesswork out of which horses to back.

Secondly, they allow for you to put your angel investing on autopilot.  With their autoinvest feature, I simply decide how much money to invest in each company (as low as $200). This is way different than most other places you can invest in startups.

I put in $5,000 to invest in 10 companies at $500 a pop. They finalize a deal about once a month. I sit back and wait for one of those picks to work out.

This should only be done when you have capital to risk. Many new companies never really get far off the ground.

However, it is a great way to get involved very early with a new company where your money translates to a way bigger piece of the pie than waiting for them to hit it big publicly.

I struggle that I already missed out on Virtuix (360 gaming treadmill) and Knightscope (robotics). You could also pick out an individual startup that looked promising to you and invest directly in that, but the minimums are higher.

I think this is a great way to diversify where your money is going. It also has the potential to pay out nicely.

 

One thought on “Angel Investing on Autopilot

  1. I wish you luck, but always hear Nords from the military dollar in the back of my mind describing Angel Investing as Angel Philanthropy back at FinCon 18… Look forward to updates.

    CD

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