Are there many here who are familiar with business angel and venture capitalism type investing? I’ve noticed at least a couple of websites where you can do this:
Through these, it’s at least possible to find those “tenbaggers”, but the risks are also at their highest. On the Seedrs site, it’s also possible to trade after purchases - Revolut seems to have grown quite well through that platform.
Acting as an angel investor/VC investor as a private individual seems difficult, as the best companies seem to seek money first from well-known investors or investment firms with deep pockets, leaving only scraps for us ordinary folks. However, the topic is very interesting, so if anyone has better insights, I’d love to hear them.
Through Invesdor, I have invested in start-ups and growth companies for several years. Many have interesting and scalable solutions, but the timetables and the amount of money needed (and expected growth and profitability) are overly optimistic. This usually results in multiple offerings where subscription prices are significantly lower than in previous offerings, which dilute ownership quite a bit if one does not participate. A few companies have gone bankrupt or are not actively operating. I haven’t seen any big successes yet, but some are, in my opinion, heading in a good direction, and some are growing well with revenue funding. The idea is that if one could find a few multi-baggers, they would cover the loss-makers. Since liquidity is non-existent (some can be traded on Privanet, with generally huge spreads), these are held for a long time, and if the business looks good, more money can be invested in later offerings. In other words, high risks and poor (non-existent) liquidity, but of course, also high returns if they break through.
For example, I have invested in Injeq, Wello, and Fafa’s Plats.
I would also see the benefit here that as a shareholder in a smaller company, one would perhaps have more influence over the company’s future, especially if it’s a company in one’s own field and one believes they have something to contribute to the company.
Yes, absolutely, time and expertise can be much more valuable than money in developing a company’s value. I am purely a passive investor, but I must admit that many startups are likely more product, technology, idea, etc.-centric, and their understanding of sales, marketing, strategy, financing, partner network development, etc., would benefit from skilled support.
The waiting time is long, and you need to know where to invest. I invested in Pyynikin and Injeq through Invesdor, but we’ll see… I wouldn’t do it again, though.
Fafas and Wello (if it’s the breathing device) could have been interesting.
I used my wife’s Wello for this flu, and it’s pretty good.
I once listened to both Rahapodi episodes on this topic:
&
I must state at the outset that, fundamentally, I don’t believe many ordinary retail investors will succeed in this sector. I base my views on the following observations. These observations are based on memories from those podcasts, so please don’t shoot me if I remember incorrectly.
drivers.This outburst should be treated as an opinion, but I, for one, see a bit too many risks in the VC and startup scene. The rewards are certainly multiplied, but the probabilities of achieving them are, in my opinion, remarkably low.
Nevertheless, I tip my 
to golden-touch individuals like Jyri. A diamond-hard professional in his field.
Martina Abell has written about angel investor Ali Omar. 
Unlike venture capitalists, angel investors are often individuals who invest their own money in early-stage companies – when the business idea is promising but commercial success is only nascent. In addition to capital, angels bring valuable expertise, experience, and contacts that are needed in the early stages.
Many angel investors are former entrepreneurs, including Ali Omar, who made an exit in 2018 by selling Med Group, the healthcare company he founded with Kustaa Piha. Technology has always fascinated him, and after the exit, he had both the capital and the passion to build the future – especially in technology companies.
Having seen and experienced a fair bit of angel investing, I simply cannot believe that the return expectation of this activity is on par with broad-based stock index investing. Many angel investors’ returns still end up in the negative.
Why is this? Early-stage company valuations are “somewhat challenging” based on future expectations. These valuations have also risen significantly in Finland over the last 10 years, so you won’t get into anything cheaply. Another significant factor is the quality of investment cases: If an investment opportunity is offered specifically to you, it’s highly probable that quite a few investors have already said “no thanks” to the case. The best cases end up with professional investors who have significantly more investment capacity than an angel investor.
How can an angel investor improve their return expectations? At the very least, investing with just money should be forgotten. By building side income streams, for example, by collecting board fees from their investments or selling their own company’s services to the companies, the overall picture can be made to work much more reasonably.