Back What You Believe In (And Make Returns)
With investing, doing good and making good aren’t always mutually exclusive. Investments can have a positive impact but they can also have a negative one.
Most investors base their decision-making on financial returns. The problem is, by looking exclusively at an investment’s financial return, investors may lose sight of the overarching goal: to provide capital to people, projects and companies to bring successful and impactful projects to fruition.
So, what happens if you invest in a company or initiative that prioritises capital over people? Sure, you may make money and then use it to make more money, but you aren’t adding anything to society this way. When investing becomes all about the money, it’s easy to overlook the negatives of what you’re actually investing in. When investments are only about the stock price, impacting the stock price, important factors such as environmental pollution can go out the window and companies can be more prone to corruption. Passively investing purely for money’s sake can have a negative impact on society at large.
But, is it possible to back what you believe in and still make returns as an impactful investor? Yes. Here’s how.
Ways to generate returns as an investor
Investing in alternative assets can feel daunting, but it doesn't have to be. A frequent question in investors' minds is how to generate returns investing in venture capital or property funds. Simply put, investors can generate returns via an exit or trade sale or via monthly returns from yielding products.
Exit strategies:?A business exit strategy is an entrepreneur’s strategic plan to sell their ownership in a company to investors or another company. Many experts believe that a well-designed exit strategy?will increase the value?of a business and help keep the company focused on making returns. One of the most common exit strategies is an Initial Public Offering (IPO). The goal of an IPO is to raise money for the company, allowing it to grow and expand in the public markets. The returns from successful exits from early stage investments can be very high, but as with any high-risk/high-return asset, investors should carefully consider this in the context of a balanced portfolio.
Trade sale:?A trade sale is a common means to exit to a trade buyer, and refers to the sale of the company in its early stages.?In this scenario, a core group of venture capitalists or strategic investors may purchase several small firms to create a single large corporation that attracts the attention of a major player within that industry. When an offer is made by a major player to purchase the integrated company, the venture capitalists can sell off the investment, generating a considerable amount of profit for each of the investors. Similarly, competitors or key players in an industy can merge with or acquire another company that complements its strategic vision or adds value to its business.
Yielding products:?Many investment opportunities in alternative assets yield periodic returns distributed monthly, quarterly or annually. For example, preference shares in property funds or venture capital investments can provide regular, passive income for investors at target returns between 8% to 15% depending on the risk level. At VentureCrowd, we've delivered over $16,000,000 in such returns to investors.
Proof that backing what you believe in can generate returns
We have over 70,000 members investing in impactful opportunities across venture capital, alternative credit and property. You can be one of them. At VentureCrowd, we make it possible to become a conscious investor and generate great returns while doing good for your community, country and the world at large.
On top of?recently reaching $250M capital raised?since inception milestone, we’ve also:
Impactful investment opportunities give you the opportunity to put your money where your mouth is and stand behind the ventures that matter to you.
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As an investor, assess the real value of your investment. Is what you’re backing adding real economic and societal value?
Backing what you believe in by supporting projects and companies that align with your values gives you, as an investor, a real chance to pioneer a new form of responsible capitalism while enjoying great returns. It’s a win-win scenario.
But first.. We need to address the?elephant?bear in the room.
Why a Bear Market is a good time to diversify your portfolio
The current bear market in the S&P 500 was officially called on June 13, 2022. It has been a rough start to the year for investors but bear markets are no reason to panic. In fact, it’s a perfect time to invest.
During bear markets, all the companies in a given stock index, such as the S&P 500, generally fall – but not necessarily by similar amounts. That's why a?well-diversified portfolio?is key. If you’ve invested in a mix of winners and losers, it helps to minimise your portfolio’s overall losses.
Bear markets also typically?generate better venture returns.?Historically, the best venture capital fund vintages tend to have been those that were invested in during bear markets.
Certain venture markets also tend to perform better than others during bearish markets. For example, the tech sector and similar disruptive industries. Technology progresses and accelerates despite where the Dow Jones sits that week. At VentureCrowd, we focus on the sectors that are shocking the system and changing the status quo such as healthtech, medtech, fintech, biotech, foodtech, climate tech and digital health. We give you the chance to back those causes that matter most and continue to display accelerated growth and interest even during those grizzly months.
Where to invest right now
There will always be sufficient capital for impact-driven founders with bold and purposeful ideas. As an investor, you can support these ventures and address fundamental problems while gaining I'mpactful returns both for your pocket and our planet. The future is in your hands. Don't want to miss out on the next exit or want to start earning passive income? See what investment opportunities we have available?here.
If you're looking to invest in a company on its way to IPO, don't miss out and learn more about?EnGeneIC's journey to a NASDAQ IPO.
Just looking to learn more??Book a call?with our team today!
The information on this website has been prepared and issued by VentureCrowd Nominees Pty Ltd ABN 36 166 599 140 as a corporate authorised representative (CAR No. 452052) of VentureCrowd Pty Ltd ABN 40 166 598 849 AFSL 503381 (VentureCrowd or we or us). The information contained in this website is for general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with your professional adviser, whether the information is suitable for your circumstances.
Please note past investment performance is not a reliable indicator of future investment performance and no guarantee of performance, the return of capital or a particular rate of return is provided. While we believe the material in this website is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which can’t be excluded.