If you only have $25k in savings, you'd be better off putting it into a low-risk ETF like Vanguard or similar.
Ask HN: I have $25,000 to invest
21–30 of 35 posts
Re: Ask HN: I have $25,000 to invest
#22Read a little bit about "adverse selection". The startup investment opportunities open to you with this amount of money are likely going to be ones that savvy investors have rejected. The people telling you to put this money into an index fund are right.
Re: Ask HN: I have $25,000 to invest
#23The reason investment funds require $1 million in assets (and that isn't your house) is because that is what it takes for a natural person to be deemed an [accredited investor] in the US.
Nothing personal, but $25,000 doesn't make someone even a prosumer investor. That is the kind of money a company raises in an FFF round. As a stranger, you're neither friends nor family.
It doesn't make sense for a company with traction to take your money. It's a week of operations, maybe. In exchange they get someone without diversification and without experience writing off five figure investments. And that person gets legal standing beyond anyone can sue anyone normalcy.
[accredited investor]: http://en.wikipedia.org/wiki/Accredited_investor#United_Stat...
Re: Ask HN: I have $25,000 to invest
#24If you only have $25,000 in savings, please don't invest it in a startup! Until you can write a check that you're okay with never seeing again, you should invest in more conservative assets. Technically speaking, no private startup can legally take investment from someone who does not meet the SEC's definition of an "accredited investor." The Jobs Act was supposed to change this, but that part of it hasn't come into…
it is what i think I can afford to invest keeping my nest egg safe! I was thinking of investing as partner, financially + hard work!
Start your own startup and doing those things is frictionless.
Re: Ask HN: I have $25,000 to invest
#25If you only have $25,000 in savings, please don't invest it in a startup! Until you can write a check that you're okay with never seeing again, you should invest in more conservative assets. Technically speaking, no private startup can legally take investment from someone who does not meet the SEC's definition of an "accredited investor." The Jobs Act was supposed to change this, but that part of it hasn't come into…
it is what i think I can afford to invest keeping my nest egg safe! I was thinking of investing as partner, financially + hard work!
Our newest co-founder joined us in this way. He demonstrated value right off the bat, and we all get along socially as well.
In this case it was pure luck, but it is possible.
Re: Ask HN: I have $25,000 to invest
#26To invest in a startup, you need to be an accredited investor, defined here [ http://goo.gl/aoKtaz ].
The OP suggested in another comment that he's looking to join as co-founder, and participate in the work load evenly.
I believe that a co-founder can contribute financially to a company without having to comply with the SEC rule.
Re: Ask HN: I have $25,000 to invest
#27What skills do you have? Possibly looking for an engineer/cofounder for a media/streaming startup out of the Chicago area.
Re: Ask HN: I have $25,000 to invest
#28To invest in a startup, you need to be an accredited investor, defined here [ http://goo.gl/aoKtaz ].
I've taken friends and family money as notes for multiple ventures. Most weren't accredited investors and my lawyers assured me it was just fine.
Re: Ask HN: I have $25,000 to invest
#29What's your engineering background?
I don't need money, but I'd still like to buy you a cup of coffee if you're free before Wednesday. Phone number/twitter is the same as my HN handle.
Re: Ask HN: I have $25,000 to invest
#30[deleted]