How do I choose which startups to invest in?

Investor Type. From angels to private equity, look for certain requirements in the businesses they fund. You’ll want to align your search with the investors likely to be interested in your type of startup. Investor Preferences. Just because they fit your stage and type, it doesn’t mean they are interested in investing in your city.

What are the potential rewards of investing in startups?

Investing in startups gives you a ringside seat to solutions for challenging problems or the development of new technologies. Growth potential. Large-cap stocks in the S&P 500 are far less risky than startups, but there’s seldom room for exponential growth. If you pick a successful startup, however, the sky’s the limit.

Do I need to be an accredited investor to invest in startups?

While it's illegal for startups to accept funding from an investor unless they are accreted, there is an exemption that allows investments from family and friends. Despite this exemption, there are still strict limitations on how many personal investors a startup can have.