3 Surprising Tips for Finding 10-Bagger Startup Investments

Just look at Facebook and Standard Oil… Published By Money & Markets, LLC. August 03, 2024 Published By Money & Markets, LLC. August 03, 2024 [Turn Your Images On] Editor's Note: We're featuring another piece from Crowdability's Matt Milner in today's Money & Markets Daily. The former Wall Street exec, startup founder and venture capitalist is now helping ordinary people invest in — and profit from — private startups. Keep your eyes on your inbox for ways to follow Matt and his team at Crowdability into incredible opportunities. Enjoy! 3 Surprising Tips for Finding 10-Bagger Startup Investments When looking at a startup investment, you might be tempted to focus on things like the company’s product or competition. And certainly, those are important factors to consider. But as we’ve learned over the years, other factors are far more likely to impact the company’s outcome — and in turn, influence how much money you can make. So today, I’ll reveal three indicators you should review when evaluating a startup investment. These indicators have been statistically proven to help predict startup success — and as you’ll learn, they all have one surprising thing in common. Indicator No. 1 — A Founding Team We all love a good tale about a lone pioneer, someone who conquers an industry all on his or her own. But the fact is, most successful companies get founded by a team. For example, Standard Oil, one of the most valuable companies in history, was built by John D. Rockefeller and his business partner, Henry Flagler. Google was founded by Larry Page and Sergey Brin. Even Facebook had multiple founders. A number of robust studies back up the value of a founding team. For instance, one study proved that companies founded by two or more people grow 3.6 times faster than companies with “solo founders.” With multiple founders, a young company can get more done more quickly — and can help provide a profitable return to investors like you and me. Indicator No. 2 — A Balanced Team But it’s not enough to simply have multiple founders… The team also needs to have the right kind of founders. For instance, if every founder on a team had the same skill set, the team wouldn’t be able to divide up responsibilities efficiently. A team that’s balanced — where each founder is an expert in one distinct area — stands a higher chance of success. Take Facebook as an example… Mark Zuckerberg was the technologist and visionary behind the company. But Sean Parker, his founding president, had significant business experience. Parker started and ran multiple tech companies in the past, including Napster and Plaxo. So at Facebook, Zuckerberg focused on the vision and the technology. And Parker focused on raising money from investors, and building out the company’s team and operations. This balanced-team approach was critical to Facebook’s success. And again, there’s statistical evidence to back up what I’m telling you: One study showed that balanced teams raise 30% more money, and generate 2.9 times more user-growth as compared to unbalanced teams. Indicator No. 3 — Domain Experience There’s also another critical indicator to review when evaluating a startup’s team. It’s something we call domain experience. In other words, does this team have significant experience in the industry (the domain) in which its operating? For example, before starting Standard Oil, John D. Rockefeller had worked in the oil industry for years. And as I mentioned earlier, before arriving at Facebook, Sean Parker had run multiple tech startups. Once again, research studies back this up: Research shows that founders with significant industry experience are far more likely to succeed than their counterparts without experience. The Secret Ingredient Behind Many Successful Startups As you may have already noticed, all these indicators have a common element: people. That’s because people are the key ingredient to a successful startup, even more important than a company’s product or competition. One reason for this fact is straightforward: When companies are just getting off the ground, things will be changing constantly. To stay alive and thrive, a startup often needs to reimagine its product, or target a different market. To use some industry jargon, it needs to pivot. But throughout all the pivoting, there is one constant: the team. That’s why these three indicators have been statistically proven to correlate to startup success — and to investor success. So when you’re looking for startups to invest in, be sure to use these indicators! Happy investing. Best Regards, [Turn Your Images On] Founder [Crowdability.com]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [RED-HOT F1 SEASON, BUT A CAUTION FLAG FOR FWONK]( - [DISNEY STOCK NEEDS MORE THAN A SUPERHERO TO SAVE IT NOW]( - [HOW BULLISH ARE COMPANIES ON AI NOW?]( [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. 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