Startup Investment: A new form of investment you should try out.

April 6, 2022
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3 min read

For a very long time, startup investing has only been available to high net-worth individuals or groups who could afford $5000 and above to support an idea to fruition, without losing sleep if the idea does not succeed or losing their funds due to the high risk involved investing in early stage companies. 

To these high net-worth individuals, it wasn't just about losing their $5000 investment in a new company, it's more on taking a bet on companies and  hoping for one that provides the returns to make up for the losses they had even if they had to invest in multiple businesses, when startup investing goes well the return on investment usually usurps the initial amount invested in different startups that failed. 

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Jude Dike; Co-Founder/CEO, GetEquity

Investing in startups can be very risky, and sometimes, you can lose all your investments. This is because very few businesses or startups get to be successful. However, it is very rewarding when you invest early in a successful one.

For instance, a startup like Flutterwave is currently valued at $3 billion after it concluded its series D funding round recently . For a company that started as just an idea 5-6 years ago , the news making the rounds is that its initial backers have more than tripled their investment and are on course to make more when they finally decide to list on the stock market or go public bringing ten fold returns to their initial capital . 

Another example is the venture capitalist, Sequoia capital which invested $60 million into the now popular messaging application WhatsApp and in under a decade, its initial investment was worth over $3 billion.

What if you could back companies like Flutterwave and WhatsApp before they ever became what they are will this be worth the risk to you? .

The good news is time has changed, so you don't need to have huge sums to invest and  to benefit from the wealth generation that's available to startup investors. 

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With the tokenized startup investment offered by platforms like GetEquity, startup investing has now been opened to everyday people and not just something available to only the ultra-rich.

With as little as $10, anyone can invest in any African startup of their choice on the GetEquity platform. 

Here is how it works – GetEquity has tokenized the assets of Startups listed on their platform, with each token priced at $10. So if you have $100 to invest in a startup, you will be able to get 10 tokens worth of the startup .

However, if the startup has closed its raising round, you can still get in on the action by using the GetEquity secondary market to buy from other investors who bought before the current fund raising round was closed, only this time you might be buying at a higher price. 

Another thing about the GetEquity secondary market is that it provides semi-liquidity in startup investing. Originally, when one invests in a startup, they are unable to cash out from their investment seeing as it’s a long term investment  unless during a trigger event like a management buyback, new funding round, merger and acquisition ,  IPO or when the startup is being sold. But with the GetEquity secondary market, you can cash in on your investment by using the secondary market as the system pairs your selling request to a matching buy request on the platform seamlessly, the caveat here is to find a matching buyer or seller on the platform .

Now that you know a bit more about what Getequity does …why not take it for a spin. 

Visit www.getequity.Io or download the mobile app from IOS and Android stores by searching for GetEquity and fund your wallet and begin investing, you never know what tomorrow unlocks. 

This article is a Brand Press post. Brand Press is a paid service for brands that want to reach Techpoint Africa’s audience directly. Techpoint Africa’s editorial team doesn’t write Brand Press content. To promote your brand via Brand Press, please email business@techpoint.africa

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