Three "Must-Haves" I Look for When Investing at the Earliest Stage
June 27, 2020 at 05:00 AM EDT
One of the most frequent things our David Weisburd gets asked is about how to invest into startups at the earliest stage. This is because early stage investing offers the highest potential return on capital of any stage of investing. All things being equal, investing in a seed-stage company at a $5 million valuation can produce a return 20X larger than investing in the very same company once it's worth $100 million (Note: dilution can decrease the former return by 20-25%). That being said, investing in startups at a very early stage has a very high level of difficulty. So how do you go about picking the best early stage startups? The short answer is that you can never know which early stage startup will bring you the highest return, but there are certain signals that can help you increase your chances of success. The post Three "Must-Haves" I Look for When Investing at the Earliest Stage appeared first on Money Morning - We Make Investing Profitable . Here are the three signals David relies on the most when making the decision to invest... Tags: Technology Article To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.