Startup Funding Espresso – The Challenge of Startup Investing

The Challenge of Startup Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investing is one of the most difficult asset classes to pursue.

Information about the potential of the startup is often scarce and always opaque.

Some information is available, but the early signs provide only scant information.

Investors are torn between the fear of missing out on a good deal and the fear of getting caught up into a bad one.

One must make an investment choice before all the information becomes available.

Otherwise, other investors will come and take it over.

Startup investing is unique among investment options because the upside is truly unlimited.

Almost all other investments have limits.

Startups do not, and this is what fuels the investors' fear of missing out.

Most investors know that they can't afford to miss the home runs.

The losses from the others will be too great unless one has a home run hit.

To resolve this dilemma, investors look for additional information.

They look for every piece of information they can to find evidence that it will be a success.

Startup founders should take note of this dilemma and provide updates to assuage their fear.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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