How do you become a venture capitalist or angel investor if you have no money of your own?
Posted by admin in Finance Wednesday, 9 November 2011 11:14 4 Comments
I want to invest in other start-ups and make this my business. How do you do this? Can I do this with no Net Worth of my own, but with excellent credit? Would it be more lucrative to become a ‘partner’ in firm instead of a VC or AI?
You can’t. The essence of venture capitalism is that you venture your own money, with the understanding that there is a good chance of losing all of it, and some chance of making a pile. You can borrow against your good credit to invest in something, but need to be sure that you can pay back if the venture goes bust.
You don’t. By definition. First earn some money before you look for ways to invest it. Investing borrowed money in unpredictable ventures is a recipe for disaster.
You can’t, you have to have money to loan it. excellent credit can get you a loan but not to loan to other people.
You could work at those firms but the person with the money makes the decision.
What kind of start-ups are you looking to invest in?