Saturday, August 25, 2012

Circle Up: Crowdfunding Startup

Looking for alternative investments?  A method of being able to get in on the ground floor of a company?  Well crowdfunding may be an investment to consider.  What is crowdfunding?  Crowdfunding raises money for startup's and small companies.  You basically become an angel investor.

So does how a person make money in this sort of investment?  There are a few options when it comes private equity investing.  A company that you invest in can either be sold to another company at a higher price or like a Facebook go through an IPO.

Circle Up specifically deals with consumer product businesses.  Here is their website where you can gather more information.  One thing that investors must consider in these types of alternative investments is the higher level of risk.  Even a well vetted company still has the possibility to go bankrupt in which case you could very well loose your entire investment.  Also is the lack of liquidity.  Typically your investment is locked up for a given amount of time with a private equity type asset.

Again balance the risks with the rewards.


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