How do I invest in startups?
Most people invest in startups directly (buying into a single company), through SPVs, or as a Limited Partner in a venture fund. Each path has different access requirements, time horizons, and risks. This page is informational only.
The major paths
Direct investing means buying into a company's round. SPVs aggregate investors into a single deal. LP investing means committing capital to a fund whose manager picks the companies.
What to expect
Startup investing is illiquid and high-risk. The capital can be locked for years. Most early-stage companies fail or return less than invested.
Qualification
Many private offerings are restricted to qualified investors under applicable law. Always confirm requirements with appropriate counsel.
When to use this
- You have capital you can afford to leave illiquid for years.
- You are comparing fund LP commitments against direct investing.
What to avoid
- Treating early-stage investing like public-market investing.
- Acting on social-media tips without primary diligence.