investing

5 alternative investments for fat returns

Funding the next hot startup
Funding the next hot startup

Angel investors, or individual investors in infant companies, used to plunk down $50,000 or more in a startup firm.

Now, microinvesting, where lots of small investors take equity positions in fledgling companies, has changed the game. For example, at MicroVentures people can invest a minimum of $3,000 and get an equity stake in a startup.

MicroVentures does the due diligence by performing background checks, assessing competition and vetting business plans. A private placement memo that details the company's business and its risks is then given to investors.

But there is plenty of risk. "Seeing a return could take five to seven years," says MicroVentures founder and president Bill Clark. "And you could also lose all your money. It's high-risk."

Additionally, only about 2 out of 10 companies will become profitable, he says. So far, MicroVentures has helped companies raise over $40 million. And like lots of other high-risk ventures, the payoff can be big -- as much as 10 times your original investment.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Move money to retirement account?

Dear Liz, Can I convert my regular investment account to a retirement account so that an investment made in that account is not taxed? If so, what type of retirement account can I choose? -- Jennifer Dear Jennifer, It's... Read more

advertisement

Blog

Sheyna Steiner

5 banks did very bad things

Five big banks are guilty of manipulating foreign exchange rates. They must pay some very big fines and the banks have promised to cease criminal activity.  ... Read more

Partner Center
advertisement

Connect with us