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Old 01-24-2018, 09:59 AM
 
8 posts, read 3,435 times
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First time and new user on this forum !!!

Have been investing in mutual funds for years. Want to get started investing in private companies. Looking at going through a venture capitol firm or syndicate not direct. What are the do's and don'ts ? If you have direct experience please response . thanks so much
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Old 01-24-2018, 10:11 AM
 
Location: Aurora Denveralis
8,712 posts, read 6,762,273 times
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Private company and VC investments are about as far from good ideas for inexperienced investors as it's possible to get. It's very high risk and fearsomely difficult to analyze the risks, and reward potential is always always always overstated by all parties. IPOs are risky, too, but at least 90% of the legwork has been done for you.

Same rules as any other speculation: don't invest money you can't afford to lose; use a professional with experience in this specific area measured in decades.
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Old 01-24-2018, 10:38 AM
 
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Default private

Thanks it will be in very small amounts $3000
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Old 01-24-2018, 10:41 AM
 
Location: Aurora Denveralis
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Have fun, good luck and may the forces be with you!
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Old 01-24-2018, 10:49 AM
 
2,747 posts, read 1,782,581 times
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Quote:
Originally Posted by jo keller View Post
Thanks it will be in very small amounts $3000
I don't think there's any private company investment you can make for $3k, unless it's a company you're working for a friend/family situation.
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Old 01-24-2018, 10:59 AM
 
Location: Aurora Denveralis
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Quote:
Originally Posted by SuiteLiving View Post
I don't think there's any private company investment you can make for $3k, unless it's a company you're working for a friend/family situation.
I've had opportunities to invest on this scale, usually through connections to connections and investment brokers working with local companies. It can be done. There are VC aggregators that will work with small investors, too.
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Old 01-24-2018, 11:08 AM
 
26,191 posts, read 21,587,222 times
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Originally Posted by Quietude View Post
I've had opportunities to invest on this scale, usually through connections to connections and investment brokers working with local companies. It can be done. There are VC aggregators that will work with small investors, too.
No broker or aggregator wants to deal with 3k contributions to private placements or VC. Well maybe if the rips are huuuuge but even then it’s questionable
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Old 01-24-2018, 11:10 AM
 
Location: Aurora Denveralis
8,712 posts, read 6,762,273 times
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Originally Posted by Lowexpectations View Post
No broker or aggregator wants to deal with 3k contributions to private placements or VC.
I am speaking from experience of a few years ago. Maybe the game's changed since then but I helped a couple of family members find just such an investment source. (It did okay.)
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Old 01-24-2018, 11:11 AM
 
Location: NJ
31,771 posts, read 40,698,345 times
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Quote:
Originally Posted by jo keller View Post
Thanks it will be in very small amounts $3000
it sounds like a scam to me. as far as i know, private equity deals are for big timers. even still, i think they are risky and under perform. but at least you supposedly have your adviser looking out for you. with a 3k contribution, i think it is probably just someone looking to steal a lot of people's 3k investments.
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Old 01-24-2018, 11:19 AM
 
Location: Aurora Denveralis
8,712 posts, read 6,762,273 times
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Quote:
Originally Posted by CaptainNJ View Post
it sounds like a scam to me. as far as i know, private equity deals are for big timers. even still, i think they are risky and under perform. but at least you supposedly have your adviser looking out for you. with a 3k contribution, i think it is probably just someone looking to steal a lot of people's 3k investments.
And most VC goes to companies looking to steal someone's $3M investments. Vegas has better odds.

I'd suggest investing friends, family and FOAFs... with the attitude you will never see a dime back. Just maybe a pot of gold with show up. (As I said, "money you can afford to lose.")

Otherwise, stay with funds.
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