Search results for: Risk
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How to De-risk Investing in Science and Technology
When investing in early-stage companies, there are a plethora of risks to evaluate, including execution, competition, monthly burn/running out of money, monetization and market growth. But the biggest two? One is technical: Can you build the product? The other is market risk: Can you sell the product? I used to see plenty of startups with technical risks on crowdfunding sites.…
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Mailbag: Airdrop Requirements and Risk Tolerance
Editor’s Note: Welcome to the Early Investing Mailbag. Each week, we answer questions we think will help you learn about investing in pre-IPO startups and cryptocurrencies. If you have any questions for us, please email us at mailbag@earlyinvesting.com. Just remember, we can only answer your general questions for information and strategy. We can’t offer personal advice. Q: It seems like…
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Nassim Taleb: Today Is Riskier Than 2007
Nassim Taleb is a very smart man. He traded his way to wealth through options and derivatives. And his books have changed the way millions of people think about risk, fragility and probability. You may have heard of his best-seller The Black Swan. It was published in April 2007 – months before the global economy began to crash. And it…
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Timing Key for Higher-Risk Investments
Editor’s note: At Early Investing, we believe in holding diverse portfolios. Our diverse portfolios happen to include pre-IPO startups and cryptocurrencies. That’s because the potential returns justify any risk involved. Other sectors of the market have investments with higher risk factors as well. And it’s worth looking into them. Vin Narayanan, Senior Managing Editor, Early Investing Dear Early Investor, The…
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A Simple Way to Assess Startup Risk
Editor’s Note: We originally ran this article from Andy last August, but since it’s an educational piece, we think it’s worth revisiting. As startup investors, we need all the tools we can get to help us make sound investing decisions. The method Andy delves into here is one tool you can use to better understand a startup’s valuation, risks and…
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The Long-Term Risks of Not Owning Cryptocurrency
The risk of owning cryptocurrency is pretty simple. You could lose money… but that’s a risk that comes with ANY investment. Every sane crypto investor understands this going in. But what about the risks of NOT owning cryptocurrencies? Those are very real too… What if bitcoin ownership goes from less than 1% to 10%? How about 35%? What if current…
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Understanding the Risks of Early-Stage Investing
By its very nature, early-stage investing is a high-risk, high-reward endeavor. When you invest at the beginning of a company’s journey, the rewards can be outstanding. However, there are real risks – and understanding them is important. The fact is that many startup companies fail. That’s why you shouldn’t invest too much of your portfolio into equity crowdfunding deals. I…
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Be Cautious in Unpredictable Crypto Markets
The crypto markets have entered a highly unpredictable phase. There are so many contradictory market forces in play that it’s hard to make any short-term market predictions. The SEC is going after Coinbase. Coinbase is fighting back. Blackrock (among others) applied for a bitcoin spot ETF (with bitcoin as the underlying asset). The SEC said no in a matter of…
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New Pick: Growth Is Brewing for This Small American Business
This week, I’m making a different kind of investment recommendation — one that I think you’ll really like. For the past couple of years, I’ve been looking into investing in small businesses. Small businesses account for about 44% of U.S. GDP. That’s $10.3 trillion in economic activity. But until recently, most investors were locked out of effectively investing in small…
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The SEC Can’t Kill Crypto
We’re entering a new phase in the development of the crypto ecosystem. The era of crypto exchanges and crypto businesses operating without any regulatory oversight are coming to an end. The European Parliament voted 517-38 in April on a comprehensive package of new rules aimed at regulating the crypto industry. The rules, on balance, appear to be fair to investors,…
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Cityzenith Shuttered, but Investors Still Have Hope
Many First Stage Investor members have written in to ask us about Cityzenith closing its business. We recommended Cityzenith as an investment opportunity in September 2020. And like you, we’re disappointed that Cityzenith closed. We were hoping for big things. I reached out this week to Cityzenith founder and CEO Michael Jansen to see if we could have a quick…
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Six Coins You Need to Sell
It’s been a week. On Monday, the SEC sued Binance, saying the crypto exchange had shown “blatant disregard of the federal securities laws.” And on Tuesday, the SEC sued Coinbase for acting “as an exchange, a broker, and a clearing agency, without registering as an exchange, broker, or clearing agency” and selling “without registering its offers and sales.” The SEC…
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Startup Insider: All About Small Business Investments
Small business investments are a growing asset class. Unlike startups, small businesses — like restaurants, bakeries, and breweries — can offer investors income streams right away. Small business investors typically get paid through interest payments or revenue sharing. But, as with any investment, small businesses do come with risks. In this episode of Startup Insider, Vin Narayanan provides an overview of…
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New Pick: A Hidden Treasure in the Plant-Based Meat Market
Editor’s Note: This recommendation was co-authored by KingsCrowd Investment Research Manager Olivia Strobl. Mmmm, pizza. Much like Homer Simpson, I was born eating pizza. I’m also a vegetarian who dabbles in veganism. So when it comes to plant-based pizzas and meat, I’m a serious connoisseur. I also follow the plant-based food business closely. It directly impacts what I eat, so…
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Crypto Insider: Bitcoin Falls While AI Cryptos Rally
Bitcoin dropped around 8% in May — its first monthly loss of 2023. There are a few factors that drove it down, including continuous inflation, high interest rates, and bitcoin decoupling from the Nasdaq. But while bitcoin is falling, AI cryptos are soaring. According to CNBC, SingularityNET (AGIX) rose as much as 19% last week. Cortex (CTXC) rose 6%, Measurable…
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New Pick: A Crypto With a Proven Vision
This month’s crypto recommendation is highly unusual — at least for us. Today I’m recommending a coin that’s already part of the Crypto Asset Strategies portfolio. And it’s the first time we’ve ever done that. Background We recommend small cap altcoins to our Crypto Asset Strategies members (click here to sign up). These investment opportunities are more speculative than the…