Finimpact

Business Mentoring Organizations That Could Help


As a startup investor, you might find these business mentoring organizations helpful.

  • SCORE: SCORE partners with the U.S. Small Business Administration (SBA) to offer free confidential mentorship opportunities. There are hundreds of chapters across the country so you’re bound to find one near you. 
  • MBDA Business Centers: The Minority Business Development Agency (MBDA) may come in handy if you’re a minority individual or business owner. There are centers throughout the U.S.
  • Social Media:  You can use your own network on social media outlets like LinkedIn and Twitter to find startups and mentors who are willing to help you with investing. Don't be afraid to reach out to someone whose profile piques your interest. 
  • Women's Business Centers: There’s a network of over 100 Women’s Business Centers across the U.S. with a mission to support female entrepreneurs. The organization hosts conferences that can allow you to connect to startups and seasoned investors. 

 

Conclusion

 

Investing in startups can be a great way to grow your portfolio and support an idea you stand behind. However, you must understand the risks involved and practice patience along the way. Before you commit to a startup, do your due diligence. Make sure they have a passionate founder with the right experience and business model that appeals to a large audience.

FAQs

What is considered a startup company?

There is no one definition of a startup company. Often, however, a startup is an organization that has a goal of going public or selling for a significant profit. Startups usually begin small and nimble and grow as they lock in investors and start seeing some success. 

How can I invest in startups in the USA?

The easiest way to invest in startups in the U.S. is to use a reputable platform, like StartEngine, Republic, SeedInvest, and MicroVentures. You can also find investment opportunities online or in-person by networking. 

How do investors get paid back?

Startups can pay back investors in several ways. If an investor provides a loan, for example they can pay it back with interest. Another option is to buy back the investor’s shares in the company at a buyback price that was agreed on in advance. In addition, a startup may pay out dividends. 

What are some companies that began as startups?

Many well-known companies began as startups. Some examples that you might be familiar with include Airbnb, Uber, Pandora, Pinterest, ShoeDazzle, Doordash, Instagram, Mailchimp, and Square. 

About the Author

Anna Baluch

Anna Baluch

Personal Finance Writer

Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses.

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