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by agconti 3573 days ago
Startups as investments are very risky with long payoff horizons. With their limited funds, this is a poor investment for the average investor. I can't help but feel like this will hurt more people then it will help.
2 comments

> With their limited funds, [startups are] a poor investment for the average investor

They're not great for institutional investors either: http://www.bloomberg.com/news/articles/2016-08-10/venture-ca...

I think it is healthy strategy to dedicate 5-10% of investment portfolio to high risks investments like this, even for average investor.
"SAFE holders do not have any voting or information rights".

With this kind of agreement, it's basically gambling since most info on start-ups is basically PR fluff. At least public companies have to publish annual reports and real investors get information rights.

Most of the startups have negative cashflow anyway. Early investors invest into potential, idea, team, tech, know how, market share.