Indian startup ecosystem is evolving as foreign investors have chipped in to put in their money into the startups which have a good userbase. The success of startups have made their founders very rich and their early investors are also enjoying the growth. For an example, an investor has turned his Rs. 10 lakh investment into Rs. 130 crore after Walmart acquired the business.
Common people are also looking to invest in startups but the issue is they don’t have that much capital. A Banglore based startup named Minance is working to solve the issue by letting investors put their money in startups which haven’t yet gone public.
Anurag Bhatia, the founder of Minance used to work at Amazon offers and now shares of private firms for its partners and has an AUM (Assets Under Management) of over 300 crores. It is similar to an investment in the stock market, you can buy and sell the shares at any time you want. The startups for which it can provide shares include big names like Paytm, Ola, Nazara, banking firm FinoPayTech and consumer brands like Kurl-on and Studd Helmets.
Minance buys shares in these startups through a variety of methods such as from company employees who receive the stock as a part of their compensation or directly from company owners and other investors. After that, it sells these shares to anyone who wishes to buy them. The minimum investment required to buy shares through Minance is usually around Rs. 50,000. Also, SEBI regulations mandate that these stocks can’t be sold on public markets within a year of the company’s IPO.
One should be very careful and aware before investing in startups. Although the volatility of unlisted stocks is less as they are isolated from the stock market, they are immune to investor panic. But, you need to study the startup for its policies and future planning before investing in it. We can’t deny the fact that making money from startups by investing in them is far easier than starting something on your own and looking for investors to raise funds and then earn money in this competitive market.
It’s a great option for someone who just focusses on making money. What’s your opinion on this? Do let us know in the comments section.