The median performance of Startup funds grossly outpaces the S&P 500.
$70 a month in Startups over 25 years grew to $1,000,000. For the S&P 500 in the same time frame, it was just $76,662.
Most investments, like stocks, are investing into already mature technology. Companies like NVIDIA, Disney, Apple etc have already made it big.
Startups let you invest when they’re small. When a Startup makes it big, the investors reap huge rewards.
The next wave of fast growing companies are only accessible to those investing into startups.
For almost 100 years, startup investing has been essentially limited to those putting $25,000 or more into just a single company.
And still, 90% of Startups fail.
But Fundify is the first place that will automatically invest you into hundreds of startups over time with absolutely no minimums.
Want your $500 a month to grow? How about just $1? Fundify is the first and only place to reach these exclusive deals.
Most people would think “the catch” is Startups are risky investments.
The truth is after investing into 40 startups, the average performance is exceedingly positive. So, it’s a numbers game Fundify handles for you.
The real catch is Startups are illiquid. This means when you invest into startups with Fundify, you can’t make a withdrawal any time you want. You need to wait months or even years for a startup to have a “liquidity event” like raising more money or going public to realize your gains.
So when you invest into Fundify, invest money you want to see grow over the next few years, not something you need today.
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Download the Fundify app now to learn more.
Legal Disclaimers / Sources
The referenced returns consider investments in early stage companies over a 25-year period only, and the average returns per year (annualized IRR) have dividends reinvested (but they are not inflation adjusted). These rates of returns may not be achieved. Past performance does not guarantee future returns. Startups performance based on average annual returns between 1997 and 2022. S&P 500 performance based on average annual returns between 1997 and 2022. Index returns are gross of all fees and expenses.
An angel portfolio with more companies enjoyed higher returns than those with fewer companies, a study by AngelList found. The study reported:some text. Portfolios with one to five companies had a median internal rate of return (IRR) of 0%. Portfolios that had ten companies had a median IRR of about 6%; 32% of investors lost money. Portfolios with 20 companies had a median IRR of about 7%; 16% of investors lost money. Portfolios with 50 companies had a median IRR of about 10%; 11% of investors in these companies lost money.
Irvine Ebert of Purple Angels in Ottawa performed a Monte Carlo simulation of the 2007 Rob Wiltbank study of angel investing and noted that 22-24 investments were necessary to have a 90% probability of a 2.6x return. That internal rate of return is approximately 27%. Monte Carlo studies of the Tech Coast Angels portfolio done by John Harbison have also confirmed this figure of 22 to 24 investments in a portfolio necessary to achieve a 2.5x to 2.6x return multiple or an internal rate of return 22% to 26%.
Small Investments Have Better Returns than Large Ones: Considering $300K as the dividing line between small and large investments, the author calculates that IRR was 39% and the payout multiple was 4.0x for a smaller ticket size of investments. (Kevin, More Angel Investing Returns. 2011.
