Venture capital investment is always a risk. But your investment pays off when at least 1 in 10 of the start-ups you invest in succeeds.
Have you ever heard of start-ups such as Secret, Essential Products or Theranos? These start-ups were predicted to have a bright future, but they all failed. Although Secret was founded by a Google employee, Essential Products was co-founded by Android, and the creator of Theranos was given Steve Jobs skirted status for her achievements.
While some start-ups were failing miserably, others conquered the world, for example, Airbnb and Zoom. These start-ups have achieved such great results not only because of their founder's talents but also because of the venture capital funds that believed in their successful future and invested millions in them. Back in 2010, Sequoia Capital and Greylock Partners invested $7.2 million in Airbnb. And in 2017, the same Sequoia Capital invested $115 million in Zoom. Today, Airbnb has $147 billion capital, and Zoom has more than $114 billion.
How does it work?
Venture funds invest in several start-ups at once. It gives the chance of high returns from even one of them is significantly increased. It is quite costly as the funds help the projects to cover all the costs associated with the production and promotion of the product and can assist in the expansion of the project, attract new investors and support it in the market entry process.
The venture capital market is now actively developing around the world. For example, Germany has launched a mechanism to raise €30bn in the venture capital market to support young European start-ups in the early stages. In France, €5bn will go to funds dedicated to financing late-stage start-ups and supporting their management and development.
Big investments lead to big profits! Even if part of your investment goes to the second Secret, another part can provide you and your family with a secure future if you invest in the second Zoom.
DigiU plans to develop its own venture capital fund in 2021. Our venture capital fund will allow you to invest in promising projects with a minimum investment of just $50. We will select only viable start-ups and thoughtfully invest your funds. And there is a good chance that in 5 years, you will be a co-owner of a new unicorn with a billion-dollar capitalisation!
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