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Collective Venture Investments with DotBig Forex Broker

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In many industries, top-notch innovations are brought by young startups that eventually grow into big international corporations. However, the truth is that many promising companies didn’t succeed simply because of the lack of venture capital invested in them. They didn’t manage to gain proper funding and, consequently, many prospective ideas died.

To succeed and stay afloat, young startups need venture capital. These are funds that investors put into certain projects that seem attractive to them. Such venture investments provide investors with an ownership stake in the company and with further possibility to gain returns from the company’s growth.

Venture investments are vital for startups because these are funding instruments. They help the businesses endure the first period of operation when they lack revenue and profits. When the financial performance of the company becomes more stable, it doesn’t need venture capital anymore.

Examples of best venture capital investments

 

  • WhatsApp, which was started in 2009, is now known as one of the most popular online messengers all over the world. In 2011, the startup raised $60 million of venture capital from a single outside source, which was Sequoia Capital. In 2014, WhatsApp was bought by Facebook for $22 billion. This deal brought great returns to the sole investor of venture capital. Sequoia Capital managed to raise $3 billion from a $60 million investment.
  • Eric Lefkofsky, a co-founder of Groupon, was also a major investor in the company. His first venture investment in the business that was the parent company of Groupon amounted to around $1 million. When Groupon went public in 2011, its IPO was the biggest IPO of the web company of the decade. After this IPO, the share of Eric Lefkovsky was worth $3.6 billion.

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  • Kleiner Perkins Caufield & Byers invested $8 million to buy a 30% share in the promising startup called Cerent. In 1999, the acquisition of Cerent by Cisco took place. At that time, this $6.9 billion deal was the biggest acquisition of the tech company. After this deal, the share of Kleiner Perkins Caufield & Byers was worth $2.1 billion.
  • In May 2012, Lightspeed Venture Partners made their first $480,000 investment into Snap Inc. The total amount of their venture investments in this business exceeded $8 billion. In 2017, Snap Inc. went public. At the time, it was evaluated at $25 billion. This made the share owned by Lightspeed Venture Partners worth $2 billion.
  • In 2000, Japanese telecom company SoftBank decided to put $20 million in Alibaba. At that time, this allowed the investor to buy a 34% share of this company. Throughout 14 years, Alibaba had become one of the best-performing companies. In 2014, when the business went public, it was evaluated at $22 billion. Because of this, the stake of SoftBank was valued at $60 billion.

DotBig Club of Venture Investments

With DotBig.com, every client has the possibility to join the venture capital investments club. Services of the DotBig forex broker suit both individual investors and corporate ones. The only reason why they join this club is the desire to find promising startups that will bring impressive returns after they go public.

The DotBig company offers such a possibility because it aims to help clients make money not only from investing in financial products but from putting funds into young projects. This is one of the ways to join the world of investments. DotBig guarantees that this experience is worth trying, despite all the potential risks of venture capital investments.

Pros

  • Investors have a great chance to raise impressive amounts of capital from a single investment.
  • Investors aren’t required to make monthly payments to hold their shares in projects, in which venture capital investments were made.
  • There is a possibility to collaborate with industry specialists and other prospective projects.
  • It’s not required to pledge personal assets.
  • Some projects have experienced leaders, with whom investors can cooperate for the sake of the further growth of the startup.

Cons

  • Usually, if the project is really prospective and ambitious, it requires impressive venture capital and financing.
  • It’s difficult to negotiate toward leverage when investing money in serious and ambitious startups.
  • Venture capital investments have some risks for founders of startups because they often have to reduce their ownership stakes and pay attention to looking for investors.

Conclusion

To conclude, venture capital investments will always remain popular because this is the way modern startups can grow and develop. Therefore, you can consider finding a good project for this investment. Whatever your decision is, keep in mind that this might be a risky deal that might not meet your expectations. Nonetheless, it’s a good chance to try.

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