When you become a trader, one of the first things you learn is to diversify your income. You can never be too sure or overconfident in your abilities and investments. It’s almost always a great idea to spread your investments across various asset classes, companies, industries, and countries. This piece reveals how you can achieve incredible growth by investing in startups and early-stage companies. Are you ready?

Long-Term Mentality

A lot happens in the investment space, and it can sometimes be impossible to keep track of your portfolio, especially during incredible market movements. Greed is one of the greatest vices that every trader must tackle and overcome during online trading because you’re more at risk of losing it when things are going great. You become overconfident, cocky, and feel invincible, leading many to invest erratically. Investing in the startup ecosystem is viewed as a means to support the long-term prospects and health of companies, industries, and economies. You can invest money in a business or founders you believe in and let them put it to work, addressing issues and posting impressive growth numbers.

What better way to invest in the future than backing companies trying to usher in our vision? You can invest to help solve issues you face, societal problems, or even help businesses do more with less. Investing in the right company operating within the ideal industry in a country with legislation that fosters its growth can help set your portfolio apart and prepare you for long-term stability and growth. Trading is all about winning today and translating those wins into future success.

Incredible Returns

There’s no denying that the potential returns investors can expect from investing in startups is one of the primary reasons many hedge their long-term strategies on early and mid-stage companies. When a company is in its early stage with lots of room for growth, the amount investors can expect to make can compound incredibly quickly (by investment standards). A company like Apple has a history of excellent returns, but this company most likely won’t make your investments grow multiple times in a few months.

Imagine investing $10,000 in an AI startup for 2% of the entire company. The business at the time of investing was worth $500,000; a few months and a new funding round later, the business is now worth double, but your ownership stake remains the same $10,000 is now worth $20,000 and can be worth significantly more if the company continues to achieve its goals and hits milestones. In reality, the growth of successful startups is often more pronounced, and investors can witness their portfolios grow by incredible sums over time. There’s nothing limiting how much return you can record from investing in a successful business.

Providing Solutions

Interested in how you can help tackle problems faced by people in your community while positioning your portfolio for juicy returns? Consider investing in a startup trying to fix issues you’re passionate about. If you back the right early-stage business, you can get to experience helping change the way people live and operate while getting returns on your investment. Investing is great, but it can be better when you know that what you’re investing in is helping make the lives of real people better.

Imagine you were a young professional in New York City in the 2000s; you often struggled to get cabs during bad weather, after events, in touristy areas, or during rush hours. You learn about a team of bright young people attempting to democratize and disrupt the taxi cab business. You invest in their idea because it’s a problem you’ll love to see solved. After all, it’s a problem you have. A couple of years later, the money you put in is now worth multiple times more, and you can easily hail a ride at any time of the day you wish. Fortunately, you no longer need to do so because your returns from this investment ensure you never have to work again.

Platforms to help you decide where to find promising startups include the following:

AngelList

This is perhaps the most popular investment platform for startups. One of AL’s great advantages is its syndicate model, which enables investors to pool their money and invest in businesses collectively. This concept took the market by storm upon its launch.

Seedrs

Seedrs launched in 2012 to serve as AngelList’s main competitor. It allows investors to invest in startups through the company’s debt or equity. This option is ideal when you want more control over your investments.

Invest in the Future Today

The best time to make long-term investments in startups was a couple of years ago; the next best time is now. There’s no better time to invest in the future you want to see than today. What are you waiting for?