If you want your cash to grow, consider investing in startups. Tesla started in 2003 and now makes a revenue of R472.09 billion. WhatsApp started in 2009, its founders sold for R326.37 billion in 2014. TikTok started in 2016 and its 36-year old founder, Zhang Yiming, is now worth over R414.71 billion, making him the 9th wealthiest person in China.
These founders all needed financial support when they were just starting out. Their startups were all just an idea that someone believed in. Getting in early is the key to exponentially multiplying your investment.
This isn’t a get-rich-quick situation though. Investing in startups is high-risk, but also high-reward. You could multiply your cash over in just a few years if you put your cash into a startup that eventually gets bought or goes public.
For instance, if you were an early Instagram investor, you could have multiplied your investment more than 300 times. That’s R100K in 2010 to R30 Million in 2012, only two years later when they sold to Facebook.
But those are best-case scenarios. Reliable data on the outcomes of investments in startups are hard to come by since it’s not always publicly available. So determining average payouts to expect if you invest in a startup will always be guesswork.
However, when the startup gets going with a good team, domain expertise, and operates using design thinking, startups have a higher chance of success and often yield extremely loyal customers, exponential growth, and a higher financial return.
How to put your cash into startups
Regulated crowd investing, like with Circular, makes it possible for the average investor to enjoy the same high-risk, high-reward opportunities as a private equity investor. On the flip side, one of the biggest challenges faced by startups is resources and, in particular, access to capital. Startups have been begging for a platform like Circular.
You can help make your chosen startup scale by becoming an investor. Fund the companies you believe in and want to see succeed in the future.
With Circular, the process for investors is easy and free. Investments range from as low as R100, so you can start at whichever level you are comfortable with. Cost-effective investing makes it easier to have a more diversified portfolio.
This could be a story you tell your future kids one day — “We were there in the beginning.”