The Risks and Rewards of Investing in Startups India first Angel network which not only helps in funding but also helps to accelerate business growth

 




We all know that what startups are and how to invest in it, but are there any risks involved and what are the rewards of investing in them? 

There are risks involved in investing in a startup but in the world of finance we know that risk in always proportionate to rewards and with great risk come greater rewards but only when you know where to invest and when. It is very important to assess the risks carefully and in accordance to that one should plan an investment in the startups.

Let’s start by analyzing the risks of investing by talking about the disadvantages involved.

There are some reasons of failure for the startup that are uncontrollable in nature resulting in the downside for everyone. Some of them could be the customer behaviors and likings, government policies & competition that suddenly changes which could result in disaster for the company. Financials need to be rigorously evaluated.

Founder’s profile, experience & background also plays an important role in company’s success that needs our consideration.

Investing in a startup can be risky and it is incredibly wise to know the cons as well before investing your money and time into any startup.



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