This article is based on a white paper by FounderList called ¿Por qué invertir en startups? by Camila Baraya.
You don’t have to be a wealthy and successful business person to make a difference for an early-stage startup. Traditionally angel investors are individuals who invest between US$10K and US$20K in early rounds of a new startup to provide early-stage companies with the capital they need to grow. It can be risky business.
However, with equity crowdfunding platforms like FounderList, you can invest as little as US$1000 in a startup that could give returns of up to 7-10 times your investment. You don’t even have to understand the Latin American market; the platform allows you to invest alongside experienced entrepreneurs in “syndicates” to help diminish your risk.
The Latin American startup ecosystem is growing fast, but many companies fall short of their potential due to lack of capital. You could make an outsize difference with just a small investment. Here’s why to invest in startups in Latin America, based on the whitepaper ¿Por qué invertir en startups?
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You have the opportunity to innovate alongside brilliant teams who are looking to build a company that solves a local problem with global implications.
Maybe you have thought of becoming an entrepreneur yourself but haven’t taken the plunge. Investing a small sum is the perfect way to get a taste of entrepreneurship without dedicating your life to it.
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You could make a lot of money.
Investing in startups is risky. But for high risk, there is high return. If you have a bit of money to invest (US$3-5K disposable cash), try investing in a group of startups, rather than just one, to spread out your risk.
While there are a few ways to receive returns on investment in startups, remember that startup investments are non-liquid assets: you can’t just cash out whenever you want. However, wait 5-7 years and you might just double or triple your original investment.
Want to learn more about investment opportunities in Latin America? Read the case studies of Keteka, GroupRaise, ShipIt, JumpSeller, Admetricks, Solarity, and more in the FounderList whitepaper.
Some of these companies are still hosting open rounds; now is the perfect time to start angel investing through FounderList!