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What is startup investment and what challenges does it bring?

If you want to start an investment process in startups, it is necessary that you resolve all possible doubts so that this process is effective and beneficial. Marc Badosa, successful entrepreneur, founder and partner of SeedRocket 4Founders Capital SCR, says in an interview that he would like companies to invest more in startups so that they can incorporate innovation into their companies.

Some tips that you should keep in mind when investing in startups are:

  • Invest only the money that you can lose: As in all investments, there are possibilities of loss or gain, it is important to invest only that money that in the event of loss does not completely liquidate your fluidity.
  • Divide the investment: If you are going to invest, for example, one hundred million pesos, it is better to divide that amount into 5 successful companies, in this way, if something goes wrong, you have the possibility of profit with the other investments.
  • Have an investment plan (market timing): It is important that you take into account when to start an investment at the beginning and when to finish since there are key moments that can help you determine the possibility of success.
  • Analyze the startup and its offer: Although an idea can be innovative and very strategic, it is not necessarily profitable. Therefore, it is necessary to do a product and service analysis to balance the value of what is offered and its profitability.
  • Be patient and wait: If you hope to get money quickly, perhaps you should rethink your decision. By making an investment you have a high but long-term investment potential.

Investment trends in startups for 2021

  • Security: Companies must prepare for the insecurity generated by data collection on the internet. As far as possible, startups should start using “cloud” models or services.
  • Logistics: There are two parts in which electronic commerce is divided, this is the one in charge of automating, optimizing and once adapting to consumers.
  • Coworking and spaces: In the current market and within the context of the pandemic, many people are seen in remote work, a large number of coworkings are increasingly being created so that, along with the ideal biosafety standards, people can work from places comfortable and modern, instead of always staying in their homes.
  • Social impact projects: More and more people want to innovate with purpose. Social impact projects are on the rise and each year they will tread stronger.
  • Artificial intelligence and Big data: When AI is applied to consumer knowledge, offers are increasingly personalized, thus generating flexibility in the labor market.

Best startups 2021:

  • Limonada: Fintech from New York, operates in the insurance sector and has a service that is based on algorithms and robots that offer policies and investment solutions to clients.
  • McAfee: Company most positioned in antivirus, but now it is part of the stock market.
  • Asana: It is responsible for giving simplicity to the work of company teams through online tools.
  • Snowflake: Promising company in the Cloud Computing industry. It has stood out in recent months and its listing on the stock market has been very successful.

Finally, investing in startups has a high profitability potential but at the same time, due to the uncertain nature of companies, it can be risky, so it is important to make a conscious study of the reasons why it is going to be done, a detailed plan and take a decision based on the capital that you have to invest, thus, in case of loss you can have a clear control.

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