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I've been noticing "greenhouse" setups are becoming popular for investing. A greenhouse is where investors provide $5K-$10K of seed money to multiple startups in the hopes that one of them will hit it big.
I'm of the view that you can build a business with little to no startup money. But, that's if you don't mind taking on a huge struggle and working the business yourself.
If you're gonna' do a startup that *needs* seed money. Then $5K-$10K is a laugh. Having one office assitant just to do varied low-end tasks will cost you about $5K per month.
I've also noticed that the greenhouse investors are really big self-promoters. They are also selling books, etc. about entrepreneurship and investing.
The problem is I don't see the "catch" in this. I do understand the idea of multiple investments as a numbers game for hoping to hit a big one. But, the investment amount isn't enough to create a *real* business.
Are they just playing a game of patent volume? Is there some other money maker that I don't see related to the self-promotion? Are they just trying to sniff out good business opportunities?
Anyone have any insider info that can shed some light on this?
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