Keith Ippel, the founder & Co-CEO of Spring, has built a leading early-stage impact investing ecosystem that has raised over $47 million in early-stage capital. While many people may associate early-stage investing with shows like Shark Tank, there is much more to it than that. Early-stage investing is a specific asset class where investors support young companies in their early stages of development by injecting capital to help them grow and expand.
Contrary to popular belief, early-stage investing is not gambling or charity. While there is a higher risk involved in investing in young companies, there is also the potential for significant rewards in the long run. Most early-stage investors are motivated by their “why,” which can be driven by either a desire to invest in a particular movement or to give back to the community or industry. By investing early, investors can help drive innovation and support underrepresented communities and founders in solving some of the world’s biggest challenges.
To begin your journey as an early-stage investor, there are three key steps to consider. First, evaluate your investment portfolio and determine what percentage of your capital you are willing to allocate to high-risk investments. This typically falls within the range of 1% to 10%. Second, reflect on your reasons for pursuing early-stage investing and connect with a community of like-minded investors or movements that align with your values and interests. Finally, consider enrolling in an angel investment course to educate yourself on how to become a successful early-stage investor.
It is important to note that the information provided in this article is not investment, tax, or financial advice. Readers are encouraged to consult with a licensed professional for advice tailored to their specific situation. The Forbes Business Council, the foremost growth and networking organization for business owners and leaders, offers opportunities for eligible individuals to join and connect with a community of like-minded professionals.
