Why You Need To Invest Into Other Startups


Crowdfunding has helped entrepreneurs fund incredible ideas. It has changed many lives for the better. It has also disrupted the entrepreneurial industry because anyone with a good idea can receive some great funding without navigating strict rules. Low minimums allow for people to get involved into multiple projects at once, which means we all have a chance to invest right now into other startups. When we do, we’ll receive these key advantages in return.

1. There’s a Chance To Help Others.

Investing into other startups as others invest into our own creates an entrepreneurial cycle that is strong. We all get to benefit from the experiences we’ve gained and receive the benefit of experiences that others have gained simultaneously.

2. It Creates Jobs.

When a crowdfunding campaign meets its goals, then it creates more jobs. It’s a trickle-down effect. The startup might hire new people to manage more orders. The distributors may hire more people. Manufacturers may bring on more workers. Investing into other campaigns as an entrepreneur helps us create an infrastructure that allows our own ideas to flourish.

3. We Grow Our Own Networks.

Relationships will always be the foundation of any business relationship. Investments create new relationships that allow us all to explore new ideas, hone our strengths, and shore up our weakest areas.

4. We Create Connections.

Some ideas have more risk than others. Not every crowdfunding campaign begins with a proof of concept supporting it. Some campaigns don’t even have a prototype or a blueprint to offer. When there are connections to other backers, their validation of our ideas (or your validation of their idea) can help to solidify investments that may not otherwise be made. By championing others, we’re championing ourselves.

5. It Creates Diversification.

Far too many entrepreneurs are willing to go all-in with their chips on a startup hand that is marginal at best. Investing into multiple ideas, even at a low level, creates some diversification which allows all of us to recover from a bad beat when it happens – and it happens to almost all of us at least once.

Investing into other startups doesn’t create competition. It creates a foundation for future profit and growth. That’s why as we all compete with one another through crowdfunding, we should also be investing into each other’s ideas. One entrepreneur’s success may help our own success develop one day.