Top 5 Reasons to Invest in Startups

Top 5 Reasons to Invest in Startups

As the Embroker says “Despite the startup failure rate, learning from your mistakes in business and the mistakes of others is the key to startup success and survival.” 

And if we look at the statistics from the European plan, but also locally, the number of startups that have been launched in recent years has increased exponentially. And this indicates that there is potential, and the startup ecosystem is beginning to receive due attention.

Source: Statista

The European startup scene boomed in the second half of 2021, reaching approximately 4,000 registered investments. London, Paris, Berlin, and Stockholm are the cities where the most investment rounds have been registered.

Locally, in 2021, the capital that startups raised, tripled compared to 2020, reaching over 116.9 million euros, compared to 30 million euros in the previous year.

If there is a brave idea behind a startup, it has a better chance of success. Ergo, investment. Our example is one of them. RepsMate has so far attracted funding of almost 120,000 euros. We are now in the process of getting funding of between 150,000 and 350,000 euros to help us reach a seed round of over 1 million euros.

That being said, there has never been a better time to invest in a bold idea, and here’s why.

Why Should You Invest in Startups?

1. Investing from the beginning means greater rewards

Since the idea of crowdfunding became popular, investments at an early stage have increased. A lower general capital requirement brings great rewards.

2. A wide range of options

Startups, in recent years, have come to be confused with tech startups, but this has only happened due to the fact that the number of tech startups has increased overwhelmingly. However, there are startups with potential and emerging markets from tech, to medicine to agriculture. There is a wide range of options to suit personal goals and funding capital.

3. A more diverse portfolio

Behind an investor’s psychology is the following idea: portfolio diversification.

It is very risky for investors to concentrate all their resources in one place, so they turn their attention to a diversification of the investment portfolio.

4. High potential for buyouts

In addition to investors, large companies are also looking for startups. Why? First, they look for startups that have the potential to be their competitors in the future. Secondly, because startups are usually in the field of innovation, they develop new technologies. Large companies that see that they can use these technologies to grow their business will buy them. Therefore, if the startup in which you have invested is sold at a high price, you will enjoy high returns on your investment.

5. Social Impact

When you invest in a startup, you not only help create job opportunities but also drive innovation. For example, startups in green technology, medical technology, and sustainability are very attractive to socially conscious investors.

How can you Invest in a Startup?

There are many ways to invest in a startup. Below we have listed the main and most meeting methods.

  • Direct Investment – you can buy shares directly in the company.
  • Online Investment – typically through a co-investment platform or equity crowdfunding platform. There are several platforms for creating fundraising campaigns.
  • Indirect Investment – through a professionally managed fund.

RepsMate has decided to Launch a Crowdfunding Campaign

Investing in a start-up can be risky, and the numbers don’t lie. However, it also comes with rewards such as huge profitability potential, a higher degree of personal satisfaction, the opportunity to invest as accredited investors, and the prospect of stimulating the economy through business and creating job opportunities.

Why you should invest in RepsMate?

Our idea started from the desire to understand the needs and behaviors of customers using AI and Data Analytics technologies.

We are a deep tech startup, using Machine Learning, Artificial Intelligence, Big Data and Data Analytics we are building a new technology  that can detect and understand human behavior and emotions to help company representatives to personalize each interaction accordingly to each customer needs’, thus increasing the customer satisfaction

Others believed in our idea too, and we were awarded:

  • Special Startup Award by Romanian Contact Center Awards 2022
  • 2nd Place @ X-Awards by Startup Grind Bucharest
  • 1st Place @Demo Day by Commons Accel
  • Pre Seed-Investment Readiness @Demo Day by BeAI 2020
  • Advancing AI finalist @Demo Day by Techcelerator
  • 3rd Place @Spotlight by How to Web
  • Part of Google for Startups
  • Part of Microsoft for Startups

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