are you investing in start-ups? Are you doing it through dedicated ETF (if yes, which one)? Are you doing directly in small business you know in person? Are you doing through dedicated platforms, (such as wefunder, seedinvest, startenginr, Republic, angellist,…)?
Which is your experience? And, which return are you getting? Which costs and conditions?
I’ve had an account on multiple platforms for a while, but so far only invested through verve.vc (formerly investiere.ch).
An ETF for seed / series X rounds does not exist afaik, but there are some for companies that IPO’d. For true venture capital, you’d have to go with a listed share of a venture capital / specialized private equity company if you don’t want to invest directly through the various platforms.
How’s that going? I normally can’t find the time to dig into the proposed start-ups and when I did, either I knew too little about the field or I was not impressed by the founders. Also the minimum investment of 10/15k CHF puts me off (but I understand it’s not easy to allow lower amounts).
They did create a fund of sort with their startups inside, but IIRC the minimum investment is 100K or more.
I either quickly sort-out a proposal or do my due diligence, which requires about 2h or until you hit the first red flag. So far I looked at maybe 10 out of 100 proposals and invested in 3 (pretty much one per year). None had an exit / updated valuation / bankruptcy yet, so as expected, this is a long time play.
I have no need for the investment to be in an area I am familiar with. In fact I believe if that’s a criteria you will end up invested in a biased portfolio. My ticket size is 20 to 30k CHF.
I invest through 3 syndicates in Canada, US, Switzerland which is great for deal flow. Some are fund based (they make decisions) and others you pay a membership fee to get access to deal flow and additionally, a mgmt fee + carry for the deal leads to conduct DD +fiduciary responsibilities. If any of you is in healthcare and is interested in joining The Swiss Health Angels let me know. We are largest angel group in Switzerland for healthcare industry. Lots of Roche and Novartis current and ex employees + many other smaller company employees in the group. About 50 investors. If you don’t know the space, I would not recommend joining the group.
Actually I had one exit this week which was a 4.5x payout in one year but of course this is not the norm. Average returns for angel investing are 24% per year. High risk, high reward.
I’m also in two startups thru verve.vc aka investiere.ch. Both don’t seem to be close to any form of exit or bankruptcy neither. Oldest investment is almost 5 years ago, so slowly regretting not putting that money into Bitcoin instead.
Wouldn’t it be nice to create a group of interests within forum members? We could do our due diligence in parallel, see the founders’ pitch, and then meet to discuss our impressions, thus benefitting from each others’ insights (mostly fears in my case, but then again that might turn out useful too…).