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Updated about 5 years ago on . Most recent reply
Seed Capital investment strategies
I have a large sum of seed capital from REI available for further investments. What percentage of my seed should I utilize on startups, compared to reinvestment into real estate? I would like to diversify, and I hear tell of startup unicorns(?), that have proven to be very lucrative investments in today's market.
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Trevor I have to agree with @Jay Hinrichs if you want to diversify while also hedging your bets with a good margin of safety. I co-founded a startup and am currently in the process of building it up and getting VC funding. I have been doing a lot of research on funding as well as talking to VCs and other founders who have gone through the process. The odds of investing in a unicorn, which is a company that is valued at or over $1 billion, are under 2% and the probability of a startup failing is around 75%. While you can hit it big betting on a startup, such as Uber or Google, the odds of losing money is a lot higher.
As a side note though if you would like to start investing in startups my company is open to accepting outside funding at this time, you can DM me if you'd like.