What Everyone Gets Wrong About Startups

by Jim Nelson
By Jim Nelson

Even though 13 years have passed since the JOBS Act opened up the equity crowdfunding industry, there’s still a lot of misunderstanding among investors. 

For instance, did you know that many of the legendary startup success stories came out of terrible economic periods?

Your own legendary startup expert, Chris Graebe, wrote about this last year:

“Give me a disruptive shift in monetary policy, economic downturn, financial collapse, stock market bust or Black Swan event akin to a global pandemic, and I’ll show you a wealth of unicorns worthy of your investment dollars.

“That’s because long-time horizons, low costs, adaptability and growth potential make these biggest of startups uniquely resilient against financial chaos.”

It makes sense. But it probably isn’t anyone’s first thought about starting a business during economic chaos. 

I’m not here to tell you whether we are indeed seeing the start of a serious economic downturn or a global reset. 

But I think most would agree we’re in the midst of a gradual and potentially prolonged spike of volatility: 

Click here to see full-sized image.

 

Another major mistake investors make when deciding on a startup to invest in is the assumption that younger is better. 

Chris had this to say just this week

“Statistically, the most successful founders aren't in their 20s or even their 30s. 

“Rather, on average, you start to find a lot more success stories when the founder is around 45 years old.

“Pierre Azoulay, an MIT professor and researcher, conducted a groundbreaking study. One that’s shaking up the venture capital world. 

“What he found was that for companies in the top 0.1% in terms of growth, the average founder’s age is 45.”

You can read about all the reasons why this is here

If you’re part of his Deal Hunters Alliance, you’ll no doubt agree Chris is an authority on spotting startups with high potential for success and avoiding ones that are less likely to pan out. 

So, when he gets excited about a new startup that is about to raise money from regular investors like you and me, you should listen. 

This coming Tuesday, March 11, at 2 p.m. Eastern, Chris plans to share the whole story, including how you can get in before this private company’s offering goes live.

Grab your free spot here. You’re not going to want to miss this one.

Chris isn’t the only one with ageless ideas this week. Here’s what the rest of your experts have going on …

How to Profit from These Charts of Doom

Sean Brodrick — our star supercycle guru — is clearly landing in the potential economic downturn camp. He has some charts you’ll need to see. But he also has your port in the storm. 

Profit from Sofas That Assemble Themselves

With all eyes on AI, another breakthrough technology is emerging right now. This industry is growing at more than 40% per year. Michael A. Robinson has the scoop on that and the company that’s driving this growth. 

The Future of Video Data Starts Here

Video is estimated to make up 80% of global internet traffic in the next two years. Chris has an AI-driven startup that has an all-important solution for all this video data. 

Dear DOGE, Here Are 3 Social Security Ideas

Nilus Mattive — your safe money expert — has a few ideas that Elon and company may want to consider. And he wants to know your thoughts. 

That’s all for this week. Again, if you want to grab a seat to hear what Chris just found, you can do so by clicking here

Have a great weekend!

Jim Nelson
Managing Editor, Weiss Ratings Daily

About the Contributor

Income expert with more than a decade’s worth of experience with recommending the sale of options and purchase of dividend stocks in financial publications. He is the associate editor of our Weekend Windfalls service and manages several of our other publications.

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