Start your engines: Why invest in start-ups?
Australia has the world’s 13th strongest economy and ninth highest per capita income. In fact, economic growth looks to be picking up pace fueled by consumer spending and according to the ABC financed by shrinking household savings. The economy grew 3.4% in the last financial year, the fastest annual rate of growth since 2012.
Growing economies usually point to an increase in the number of start-ups coming to market. Conversely, young companies are generally good for the economy. Think about this: when Apple went public, 300 people became millionaires. Now think about the impact Apple has had on global economies.
Based on that fact alone, it’s no wonder that investors and venture capitalists want a piece of a decent start-up’s pie. Of course savvy investors know that 90% of start-ups are destined to fail.
Suffice to say, investing in start-ups can be a tricky business and you need to get on board ones that have global appeal.
So what should you look for when investing in a start-up?
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