https://netcapital.com/
very interesting site for investing in start up companies. I guess their still private.
very interesting site for investing in start up companies. I guess their still private.
Startups
- Thread starter mac
- Start date
Investing in a single startup company is a real gamble, unless you literally have inside information, i.e., a personal relationship with one of the principals. In that context, in most cases, making a decision to invest based on "inside information" would not unlawful, because it is not a publicly traded security.
But no matter how well you know the principals, it's still a major risk. Most startups fail. And even if it is wildly successful, it could be many years before it actually turns a profit or pays any distributions. And you won't be able to pull your money out, unless you find someone to buy your interest. Good luck with that.
If this sort of thing interests you, you should check out Business Development Companies, HTGC or GBDC. They are exchange-traded products, and they are very liquid. And many of them pay handsome dividends. They are closed-end funds that lend money to, or take equity positions in, privately held companies that need money, can't get it from more traditional sources, but cannot or do not want to go public.
BMK
In my previous post, I wrote:
What I meant to write was:
... you should check out Business Development Companies, like HTGC or GBDC.
I was not specifically recommending either of those two funds.
I own shares of GBDC. I do not own HTGC. I was merely trying to use them as examples.
There are about 50 BDCs out there. Some of them are garbage. Some of them look like decent buy-and-hold investments that make very good regular distributions. All of them involve real risk. Most of them invest at least part of their money in companies that are distressed. That's why those companies can't get loans from banks.
BMK
What I meant to write was:
... you should check out Business Development Companies, like HTGC or GBDC.
I was not specifically recommending either of those two funds.
I own shares of GBDC. I do not own HTGC. I was merely trying to use them as examples.
There are about 50 BDCs out there. Some of them are garbage. Some of them look like decent buy-and-hold investments that make very good regular distributions. All of them involve real risk. Most of them invest at least part of their money in companies that are distressed. That's why those companies can't get loans from banks.
BMK