Financial health and false gurus when investing in startups
I would like to start this article with a very personal experience. When my brother was just a child he was ill for a long time and went from doctor to doctor of all kinds: conventional, naturopaths, healers… Most of them always believed they had the definitive solution and prescribed different treatments, often very expensive.
After years of taking all kinds of medicines and many “magic solutions”, my brother’s health got worse instead of better. Everything changed when he came to the conviction that the key to his health was not in the hands of those “false gurus” who thought they knew everything, but in his own hands instead! This does not mean that all the doctors my brother visited were poor, but the “false gurus” are those who tell you that they have the definitive solution for you and often advise you on what benefits them the most.
My brother stopped all treatments and started studying health. He radically changed his lifestyle, with the conviction that everyone has the key to their health. Practically none of these “false gurus” asked him about his lifestyle or his nutritional habits, they did not make an exhaustive analysis of his life but took some symptoms and prescribed a treatment. If they had been interested in knowing more about his lifestyle, they would have realised that what was simply wrong with my brother was that he had an incorrect diet and a very unhealthy lifestyle.
My brother started practising sports and healthy habits. He changed his diet, his attitude and his vision of the world, knowing that the results would not come in the short term, as the “false gurus” usually promised, but that it would be a long road with many ups and downs. With time and perseverance her health improved and today he has a completely normal life.
From this example of physical health, what experiences can we apply to the financial health of an alternative investment investor? As FELLOW FUNDERS believes, there are many:
Be firm and patient when investing in startups
To achieve the goal and obtain good results in your investments you have to persevere and have a medium/long-term horizon, instead of a purely short-term perspective. Startups usually take years to mature sufficiently to be able to reach an exit. So, when investing in startups, be patient.
The responsibility of your finances is in your hands
Delegating responsibility for your finances, especially in the world of alternative investment, is very difficult. Managing a portfolio of startups is not something a normal advisor can easily do. If you want to invest individually, look for alternative financing platforms with a team and a serious selection method, which will help you not to get lost in the world of Equity Crowdfunding. If not, you can always invest collectively in a fund, but remember that they usually have very high entry costs.
Do your own research and draw your own conclusions on alternative investment
If you are going to invest in startups, select a good platform that has good projects, but always demand that it provides you with all the information with complete transparency and professionalism, so that you can manage and monitor your investments.
Decide how much to invest and spread your investment over several startups
The key to a successful portfolio is not only in the selection of investments, but also in diversification. My brother changed many things in his life in order to get the best results.
Beware of false gurus
Unfortunately, in the investment world, and logically also in the alternative investment world, there are many advisors/gurus who have their own agenda and only want to sell products that make them rich but do little, if anything, to benefit the client.
Fellow Funders wants to help you build your alternative investment portfolio, but applying our own criteria of professionalism (scoring, company valuation, etc.) and transparency (complete due diligence of the company – business model, legal, financial, etc.) in order to generate sufficient confidence in our investors.
Fellow Funders wants to give you all the tools you need to make your own decisions. Do with your finances as my brother did with his health: look for experts who don’t force you, but who advise you and help you to be your own guru.