Has anyone invested in private markets?
I just found out that anyone can invest in private markets. I find the idea of investing in a private company super cool but how to go about it? I understand it’s risky but I feel it’ll be a good addition to my portfolio. Any platform suggestions are appreciated!
Private companies/markets have a butt-load of hidden sh*t. VCs do it because they have ways to claim their money back, or write off rich-people's money as losses, people to whom 5cr is 1% of their net worth.
In unlisted shares, and the price fluctuation, lack of transparency, illiquidity, is not comfortable for everyone.
Figure out an industry you have interest in, founders you have trust in, and an amount of it is fully lost, makes no difference to your mental peace.
- Find an angel fund, they would be happy to have you. Some are FAAD network, lead invests, chandigarh angel, o2 angels, angel.co etc, chatgpt for an exhaustive list.
- Join the free ones for a test run like Faad network. Others may charge a fee.
- You can invest as low as 2.5 lakh.
- Be very very selective with the companies.
- Do not invest in FOMO, I repeat do not invest in FOMO. VCs and angels lose money because of sheep mentality.
PS: I have been investing in PE for 6 years, and made 14 investments so far. 4 busted, 2 exits at 1.5X in 3 years, 1 is at 60X multiple, others are between 1X to 5X but every thing is paper money until it is in your accounts.
Disclaimer: Do not invest if you do not have the appetite to lose money.
Does not make so much sense tbh Private market companies ultimately list in public markets, and often at lower valuations
Plus, you'd get very little information about the company periodically because they don't have to report financials etc. normally
Unless you've exhausted public markets, or have unique access to a deal that is a no brainer - I would not advice you for it
Isn’t that what VCs do? Invest in startups for higher returns?
Check out infinyte club. They have a lot of Indian and international private deals. They had replit and perplexity recently…
