You probably have heard numerous success stories of business giants with a massive share in the market who started as small startups and were considered venture investments. And you know the stories of those who invested in these projects at their early stages and got huge returns after they become international giants. Who said you cannot find the same ambitious projects today?
All you need is to find a platform through which you’ll have the possibility to make such venture investments. These are risky affairs but they can easily turn out to be very profitable for corporate investors.
Before we suggest the best platform for making venture investments, let’s find out everything about this type of investing.
What are Venture investments and how do they work?
The venture investments term refers to funding young projects that promise to become thriving companies in the long run. It’s a big venture because, at the stage of IPO, nobody can say for sure whether a certain startup won’t fail.
You can explore venture investments in different sectors. For instance, the DotBig company offers the possibility to join its club and explore IT venture investments. This sector seems to be in the highest demand now, so there are a lot of interesting projects to consider. Just consider that the current biggest IT company, Amazon, has its share priced at $18 during the IPO. Since then, Amazon became one of the leading corporations in many sectors. If you had made a venture investment of $10,000 in 1997, you would have taken a $16.5 million return in 2022.
The history of investments knows a lot of examples of when venture capital investment funds helped companies to start paving their way toward success. Ozon, Snapchat, Jelastic, LinguaLeo are just the most famous examples.
With the DotBig forex broker, you can make venture investments in promising social networks, games, development services providers, starting retailers, and so on. But why you should consider investing in unknown projects instead of putting your money into some well-performing shares or cryptocurrencies?
How do venture investments differ from others?
When you deal with shares of well-established companies or other assets popular with the DotBig forex broker clients, you put your money into projects that have already achieved their maximum heights. In the cases of venture investments, things are more interesting because these startups haven’t shown anything yet but they have high growth potential.
As Investopedia explains, projects that are supported by venture capital firms aren’t bought completely. Usually, venture capital firms invest 50% or even less, while private equity firms buy 100% of shares of existing companies for the sake of reorganizing these companies and boosting their revenues. Thus, because of this risk diversification, venture projects are more independent than equity companies, and so they have a better chance to fulfill their growth potential.
Any DotBig trader will agree that diversification is a great tool for venture capital investors. If you decide to become a DotBig trader, you will have a chance to use this tool by adding numerous investment products to your investment portfolio.
Why do investors choose venture investments?
- Donald T. Valentine, the founder of Sequoia Capital, one of the biggest venture capital investment firms that gained $3 billion from a $60 million venture investment in the WhatsApp startup, says: “The firm doesn’t spend time or dollars developing markets. Rather, it’s interested in what kinds of problems entrepreneurs are solving — and what they can contribute to a market Sequoia has chosen to invest in. We are interested in exploiting markets early”.
- Peter Thiel, the very first investor of Facebook, suggests that the power of venture capital is often underestimated: “Our general life experience is pretty linear. We vastly underestimate exponential things. . . When you have an up round with a big increase in valuation, many or even most VCs tend to believe that the step up is too big and they will thus underprice it.”
- Big venture investments are about cooperating with other investors. This cooperation also increases the popularity of venture products because it gives more chances to succeed in the long run. That’s why Kleiner Perkins suggests: “I’m a people investor – my job is to sit across the table every day and listen to some lunatics tell me about some future that I have never imagined, and try to figure out which lunatic I want to go on the adventure with”
Pros & Cons of venture investments
| Pros | Cons |
| The possibility to learn from other investors and cooperate with them in a single network | The risks are very high for investors |
| Investors can manage and diversify risks better | Performance of the startup heavily depends on many non-market factors |
| Venture investments don’t require monthly payments | A venture investment is a long-term affair that requires time to bring profits |
| Better exposure to a promising industry | |
| Large amounts of capital aren’t required at the stage of venture investing | |
| A great diversity of projects to choose from |
Conclusion: should you invest in ventures now?
As you can see from the table above, venture capital investments have more advantages than disadvantages. The potential gains are very lucrative for beginning investors, so we suggest that you should use this opportunity and explore the most promising startups to put your capital in.
How can you do this? The best way to explore the niche of venture investments is to become a DotBig trader and join its venture capital fund. Here you will meet other experienced investors, will have the possibility to learn from them, and explore a lot of fast-growing projects.
FAQ
Are venture investments profitable?
Venture investments can bring millions and billions in profits. There are numerous examples of such affairs. Just consider such examples as WhatsApp, Facebook, Cerent, Snap, NIO, and hundreds of others – these were all venture investments.
How to make venture investments?
To make a venture investment, sign up for a trading account with the DotBig company, join the venture capital fund club, and find the project you want to support at the stage of IPO.
Is it a good time to make venture investments?
It’s always a good time to make a venture investment if you can just find a fast-growing company with promising ambitions.