So I am planning on buying shares of an early startup which is doing an internal round funding and I got the opportunity to invest. This is my first time investing and would want to know what are things to consider and what I should ask the startup for before I hand in a cheque.
You should immediately be ready to mentally write off you investment the day after you create it. In your brain, burn the cash. Be comfortable with it. If this causes you to feel queasy than don't do startup investments or, at least, don't do another one if you're already committed to the current one.
If you are doing not know eventually five startup founders that you just would invest in without delay than you doing the incorrect thing in life and will reconsider. it's highly unlikely to travel well for you. Put your money in an open-end fund instead and return to financial activities that you simply are well prepared to to well at.
If you may persist and follow through, whatever dollar amount you have got in your head that you just want to speculate you ought to multiply by .10 and invest that much instead. Make this final investment amount constant and unwavering amongst all of your investments. Use this investment amount for the subsequent four investments you are doing too. Then, and only then, rethink the dollar amount. Remove subjectivity from your investment amount per deal.