Investing in private companies can be challenging, and even the most experienced investors make mistakes. It's important to take your time before making a decision and keep your expectations reasonable. Some of our top tips for new investors:
- Never invest more than you can afford to lose.
- Make sure you understand what you are investing in.
- Do your own research before investing and don't be afraid to ask the founders a question if you want clarification. Review the documents attached to the campaign page to get a more detailed look at the company, its plans, and its goals.
- Keep a diversified portfolio (don't invest a lot in just one company). It’s better to make multiple small investments rather than one large one.
- Make sure you're investing for the right reasons. Supporting a business or mission you love is a great start.