Atlanta is well on its way to making its claim in the twenty first century. Not only is the city recognized as the “Hollywood of the South” it is now the number five city for tech startups. Within Atlanta and the surrounding area, young entrepreneurs are gravitating to the area making it the new “Silicon Valley of the South.”
With so many startups on the rise it might prove beneficial invest in a startup. A startup investment can be rewarding for you and those you invest in. You are able to profit and watch the business you invested in grow, while the business owners make their mark in the booming digital world. On the other side of that argument some startups never really get their ‘start’—they come and go in a flash.
How can you make an informed decision about which Startup(s) to invest in?
Invest in the People
When you’re looking at a Startup the idea might be amazing—revolutionary, in fact. However, if you don’t take the time to know the team you might be setting yourself up for failure. Startups are often young and scrappy—make sure they have a clear vision for their product before investing!
Understand the Risk
As long as you understand the investment may be risky and you might not get your investment back, then you are at least being realistic when thinking about investing. If you stress too much while writing the check, it means it may not be the right time for you.
You Might Become a Mentor
Aside from a check, Startups may also be seeking the advice of their investors as well. Young Startups might seek guidance on where to put their money, market their brand, or ask for additional connections. Make it clear from the beginning how personal you plan on being with the company. If this is your first time working with a startup you should let them seek mentoring somewhere else.
Have a Handle on Your Finances
This probably goes along with understanding the risk. If your own financial situation is not in order it’s not wise to invest in a Startup! They are counting on you to cut a check immediately, and if you’re depending on a ROI, it might take some time. It takes a while for any business to get on its feet.