For some, simply hearing the word “investment” makes them squeamish. The world of investing is big, fast moving, complicated and at times has large stakes on the line. Images of computers with six screens, crazy complicated graphs and calculators with paper tape spilling onto the floor make investing scary to the average person. We at EquityBee want to help change this and make investing easy.
Finding solid investment opportunities can be very challenging. Should you buy Facebook or Google’s stock, Bank of America or Citibank’s? Deciding between investment opportunities can be very tough. With virtually limitless amounts of information available, and new investment products being created almost daily, how is anyone supposed to know what’s the right investment for them. We at EquityBee believe we can help here too, by making investing simpler.
Perhaps the most important thing to remember about investing is that when done properly, investing can be tremendously rewarding. In fact, it is estimated that the wealthiest 1% in the US earn almost 30% of their income from investments . Learning ways to intelligently make investments that provide a nice passive income can be tremendously rewarding. We at EquityBee have a few tactics designed to make investment easy, like click-of-a-button easy. Investing through our Employee Stock-option Funding (“ESF”) platform is the perfect way to remove the difficulty and fear in investing and truly make investing easy. If you’re unfamiliar, check out our website to learn more about how our investment process works.
3 INVESTING TACTICS AVAILABLE THROUGH EQUITYBEE’s ESF PLATFORM
1) Let the Professionals do the Heavy Lifting
Making an educated investment requires a lot of research, or in investment lingo, due diligence. Doing proper due diligence on an investment opportunity takes time and money, and we mean a lot of both. It’s not uncommon for a professional investor to spend years researching an opportunity before writing a check. Alongside the man-hours there are usually handsome fees to lawyers, accountants and a plethora of other consultants. Investing through EquityBee’s ESF platform offers an easy way to invest without the need for years of due diligence, simply let the professionals do the heavy lifting for you. The investment opportunities on our ESF platform are backed by some of the world’s leading VC investors. These VC firms have done extensive due diligence before investing in the companies on our platform. So, one tactic available through EquityBee’s ESF platform is investing in opportunities backed by investors you trust, and are confident have done proper due diligence on the opportunity. This way you can trust you’re following smart money and save a ton of time and money in the process.
2) Get In-the-Black from Day One
“It’s Difficult to Make Predictions, Especially About the Future” is a great Danish proverb. This simple observation (fact really) is what makes investing so difficult – not knowing exactly what will happen to your investment down the road. Will the Fed raise or lower rates, what will happen to unemployment numbers, who will win the next election, or who will be fighting whom? These questions can have a serious impact on your investment returns, but the answers are unknown when making your investment. Our ESF platform eliminates some of these unknowns by offering investments that are already deep-in-the-money at the time of investment. You as an investor on our ESF platform get to make investments through an employees’ stock options that were granted a long, long time ago. This time delay generally implies that your investment is made at a significant discount to current market value. Hence how your investment can be in-the-black from day one. Another tactic we recommend on our platform is investing in opportunities already deep-in-the-money, increasing your chances of generating a great return. Your friends are going to think you can predict the future.
3) Diversification Made Easy
In a previous blog post on startup investing basics, we discussed the benefits of diversifying your investments. Diversifying investments across industries is a great way to decrease the volatility of your portfolio. Diversification’s goal is to achieve optimal returns while minimizing volatility by investing in different industries that would each react differently to the same unique event. Our ESF platform offers a super easy way to employ this tactic. During just the past month, we’ve offered investments in AdTech, ride sharing, cyber security, HealthTech, enterprise software, robotics, among other industries. Sign up for yourself and see how easy diversifying your investments can be through EquityBee.
We at EquityBee built our product to help both employees and investors fill a large hole we saw in the employee stock option funding market. Along the way, we quickly realized another great benefit of our platform for investors. Not only do investors have several super easy investing tactics described in this post, investors also get unprecedented investment access on our ESF platform. Investing in companies like Facebook, Twitter, or Wix.com well before their IPOs has traditionally only been something available to large institutional investors and top VCs. However, through our ESF platform, accredited investors are granted access to similar opportunities just like those three former unicorns. Don’t miss out on an opportunity to get in early, and potentially at a discount, on the next undiscovered unicorn.
We don’t want investing to be scary. Nor do we want investing to be difficult. We want to help make investing easy. If you try one of the three tactics we described on our ESF platform, we believe investing will not only be easy, but also profitable.