Ask HN: I have $25,000 to invest

[blaincate]

I have $25000 to invest. I am thinking of applying to angel.co but they are asking for $1M is assets! Where can I apply!

I am software engineer in bay area and have experience in programming.

So ideally I would like to invest in a startup that is gaining traction, and need money + expertise !

Any advice? I should be able to contribute both financially and in developing the company!

Any ideas? I am willing to help out a current startup in bay area or remote!

[jacobsimon]

If 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 effect yet sadly.

[blaincate]

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!

[smt88]

Putting your nest egg in a startup is very nearly a guarantee that you'll lose it. Even the best of the best are terrible at picking winning startups.

If you want to keep your nest egg and see it grow at least a little bit, you need to find something low-risk, low-reward. Startups are literally the worst thing you could invest in.

[leesalminen]

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.

[brudgers]

Start your own startup and doing those things is frictionless.

[logn]

Startups can take money from anyone, but it's a lot less complicated with accredited investors.

[tptacek]

Read 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.

[650REDHAIR]

Not true at all. His experience + $25k pooled with other angels could be valuable to another company.

[seekingcharlie]

If you only have $25k in savings, you'd be better off putting it into a low-risk ETF like Vanguard or similar.

[smt88]

$25k in the Bay Area is NOT an amount you should invest. It's something you should save for a rainy day. Of course, savings should be put into something that yields more than a checking account, but that depends a lot on how liquid you need to be.

[CyberFonic]

Here's a different slant ...

Why not be a technical co-founder in a startup that you truly believe in. Then use the $25k to support yourself and get the startup to angel stage quickly.

[brudgers]

The 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...

[sysk]

What is the best way to reach you?

I've been working on a Bitcoin related web-based/mobile software for the past few months and have a working MVP (Node.js, PostgreSQL, Angular stack although I'm flexible about using other technologies in the future - Go and React come to mind). I haven't publicly launched it yet (no traction :/) but I'm fairly certain there is a market for it and there are a few obvious paths to monetisation. The idea is novel, it's a white market (no direct competition at the moment) and the barrier to entry is reasonably high (mostly due to technical complexity and potential network effect).

I'm not sure if in its current incarnation the idea could scale to become more than a "lifestyle" business but I have some ideas. I've been thinking about the possibility of getting a co-founder and funding lately. One problem I'm facing right now is that on one hand, I want to give my potential co-founder a large chunk of equity (30-50%) so that (s)he feels motivated but on the other hand, I'd feel a bit uncomfortable about just "giving away" a few months worth of labor and expenses. Having a co-founder who is willing to throw in a small investment would solve that problem.

If you think you might be interested, shoot me an email at [e-mail]

[coralreef]

$25k is obviously a drop in the bucket for angel investors. You'll really only be able to invest in one startup with this. Maybe your best strategy would be to hand pick projects with promise and make offers to invest.

[650REDHAIR]

What'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.

[justfalcon]

What skills do you have? Possibly looking for an engineer/cofounder for a media/streaming startup out of the Chicago area.

[lcdoutlet]

If you are still looking for a place to invest. I have a good business model and good references from a previous investor.

[pearjuice]

If you really want to invest it, invest it in yourself. Get a good suit. Get a gym membership. Buy educational material on a healthy lifestyle. Get a good pair of shoes. Or two. Maybe a watch. Consider upgrading your drivers license.

25K is barely a yearly salary, don't throw it away by investing it.

[sova]

Which languages do you know and would you be willing to learn Clojure ? =)

[siscia]

I know Clojure... What are you looking for ?

[bdm]

To invest in a startup, you need to be an accredited investor, defined here [http://goo.gl/aoKtaz].

[650REDHAIR]

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.

[leesalminen]

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.

[philiplindblom]

or you help me build fundership.com

[dexcs]

Casino. All on Red. :)

[Ragu]

Great Idea. You can invest on Education Industry. So it never Get down.

[Sonicrida]

Do you have any interest in competitive gaming?

[BinaryAcid]

Bitcoin is low right now. Double your money in a few months.

[viju0731]

hi, i would like to support fo this cause remotly from india regards, vijendra singh Skype ID:viju.s0731 Mobile:[phone]