Investing in startup
What is the best way to know about and analyze startups. To give some perspective - tech startup in Bay Area or pharmaceuticals in east coast. - First of all is it possible to invest as an individual. - what is the minimum amount required for investing? I am considering 50 - 100k. - has anyone done such investing? If so, your experience on this process.
To seed invest and make money you need many bets. If you had $1M free cash I’d break it apart by 25k bets with a few 50k only where you feel its moonshot. Some positions you should exit during early institutional rounds to take winnings.
at that level it’s seed investment by angels. join a local angel group
How much is the company worth? What % of the company do you get? Do you get a seat on the board? What is the value prop of the company? What is the proposed exit strategy? Who are the competitors? What is the market size (actual, not some made up numbers in charts)? How far will the money you invest go/what will it be used for? Are there other investors? Have they accepted money from anyone else? What does the ownership structure look like/does the company have any outstanding debts or is the company owned by any 3rd parties (universities, for example)? Does the company have IP filed? Do you get preferred options? Are there convertible notes/structure of the seed investment round. No minimum amount to put in. It all depends on how much you want to own and how viable the value prop is.
Check Wefunder out
Seed stage is usually individuals. You need to be an accredited investor (criteria in https://en.m.wikipedia.org/wiki/Accredited_investor). I am not aware of individuals participating in rounds beyond sees, but that doesn’t mean it doesn’t happen