3 Ways to Start Investing Without Knowing Anything
Introduction When it comes to investing, you don't need to be an expert. In fact, the best investors are the ones who know nothing—and then learn everything they can about their investments. But how do you get started without knowing much? Here are three ways that even beginners can start investing: 1. Be a sponsor for start-ups If you can't afford to invest in a startup yourself, consider becoming a sponsor. As a sponsor, you will receive equity in return for your investment and help guide the company as it grows. This is usually done through an agreement called an "equity distribution agreement," or EDA. The EDA details how much equity each investor receives and when their shares vest (become active). The first step is finding qualified companies: Startups that are looking for funds should make sure they meet certain criteria before approaching investors like yourself—including having founders with previous experience running successful startups; being on track fi