Keith Ippel, the founder and Co-CEO of Spring, a leading early-stage impact investing ecosystem, has raised over $47 million in early-stage capital. Early-stage investing is a strategy where investors invest in young companies that are developing new ideas, products, or services. It involves injecting capital into the business to help it grow and expand. Unlike gambling or charity, early-stage investing comes with higher risks but also potential for significant rewards in the future.
When engaging in early-stage investing, most investors are driven by their “why,” which could be contributing to a movement or giving back. Investing early in movements like healthcare innovation or supporting women entrepreneurs can lead to groundbreaking ideas. Similarly, by giving back to underrepresented communities and founders, investors can help solve important global problems. It is not only about funding but also providing time, expertise, and networking opportunities.
To start as an early-stage investor, it is important to take three key steps. First, assess how much of your portfolio you are willing to assign to risk, typically ranging from 1% to 10%. Next, understand your motivation for early-stage investing and ensure it aligns with your values and interests. Finally, consider taking an angel investment course to educate yourself on the ins and outs of successful early-stage investing. Numerous organizations, including Spring, offer resources and programs to support new angel investors.
By following these steps, aspiring early-stage investors can begin their journey with the means, purpose, and necessary knowledge to make informed investment decisions. It is essential to note that the information provided is not intended as investment, tax, or financial advice. Individuals should consult with licensed professionals for personalized guidance. The Forbes Business Council serves as a vital platform for business owners and leaders to connect, grow, and network.
