Private Markets Investor
Private markets offer the appeal of a higher return, but also come with a higher risk of failure and lower liquidity than public markets. Private markets include a large variety of investments that range from venture capital to real estate to art and everything in between. There’s a lot to navigate because there’s a large spread between the best-performing and worst-performing investments, so understanding them is even more important. Even for those who are comfortable with alternative investments, this collection can help educate you on the ins and outs of private market investing.
For a startup employee, learning about your company’s initial public offering (IPO) is an exciting time. But it’s also overwhelming from a financial planning perspective. You have a variety of different equity grants, and you must decide what to do with each one. How many stock options should you exercise and sell, and when? What will your tax obligations be, and how can you minimize them?
Conventional wisdom says that startup equity is worthless. While most startups fail, there’s a chance your equity will become a life-changing pot of money. This guide explains how to make the most of your equity.
Planning for retirement often feels pointless. You’re young and your startup is taking off — why should you worry about retirement now?
Intro to Alternative Investments
Alternative investments (“alts”) refer to any assets that are not stocks, bonds, or cash. Common types of alts include private equity, private debt, hedge funds, real estate, and crypto, but the world of alts is vast and can include collectibles like art and NFTs. Alts tend to be less liquid than public equities (stocks and bonds) and are usually made accessible to investors through funds. Historically, alts like VC funds and private equity have only been available to institutional investors. But these investment vehicles have recently become more common with individual investors despite regulatory requirements for investing in certain funds. Investors often turn to alts for their high return potential and ability to diversify an existing portfolio.
Should You Invest in Startups?
You’ve probably seen the headlines of famous angel investors making tens of millions of dollars through single investments. And there are certainly other benefits to investing in startups – learning, supporting your friend, building a network, and status (among others). Could you do the same? Ultimately, you have to make the decision about what to do with your money. But I’m here to analyze a few of the numbers so that you know what drives returns if you do start investing in startups.