Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,152,663 members, 7,816,699 topics. Date: Friday, 03 May 2024 at 03:36 PM

Investing In Startup Vs Buying Shares? - Investment - Nairaland

Nairaland Forum / Nairaland / General / Investment / Investing In Startup Vs Buying Shares? (3566 Views)

What's The Advantages Of Buying Shares / Buying Shares Worth 1500 Naira At First Bank / Buying Shares in Nigeria: Companies, Stock Market Trends, & Opportunities (2) (3) (4)

(1) (Reply) (Go Down)

Investing In Startup Vs Buying Shares? by NSNA: 11:01pm On Mar 04, 2013
Which is better?

A lot of people are buying shares and loosing money when they could invest in a Startup.
With Startup at least you see a business plan and you can weight the risk Yourself.

1 Like

Re: Investing In Startup Vs Buying Shares? by Seun(m): 11:49pm On Mar 04, 2013
Startups are more risky because a large percentage of them will be wiped out completely.
On the other hand, one good startup investment can make enough money to pay for many bad or average ones.

With shares, you can see detailed financial results which are usually audited. Many startups may not have that.

2 Likes

Re: Investing In Startup Vs Buying Shares? by solid3(m): 7:21pm On Mar 05, 2013
True talk seun. I've got some investors at hand but am scared of accepting their money. Due to the fact that it cost alot to maintain office recurrent cost while all advert does not guarantee patronage.
Re: Investing In Startup Vs Buying Shares? by stockbull(m): 7:49pm On Mar 06, 2013
investing in shares is better than start up stuffs. There are lot of manipulations and cosmetical analysis in prospectus given to potential investors and you can not predict what will happen to the stock or get out when the company is in problem. If you enter the floor of market during the bulls, it is better and remember that every thing that happen to company affects her stocks on the floor of the trading and affect ipo
Re: Investing In Startup Vs Buying Shares? by Dpros(f): 12:22pm On Mar 08, 2013
THE TRUTH ABOUT EVERY BUSINESS IS THE FACT THAT THERE WILL ALWAYS BE RISK. THE ADVANTAGE OF STOCKS OVER START UPS IS THAT THE BIGGER COMPANIES SEEM TO HAVE GROWN IN THE SYSTEM(THEIR BUSINESS AREA) OVER YEARS AND CAN MANAGE THEIR RISK AND PREDICT OUTCOMES A LITTLE MORE BETTER THAN START-UP COMPANIES.

BUT ANOTHER TRUTH YOU MUST KNOW IS THAT A SUCCESSFUL START-UP COMPANY/VENTURE YOU INVEST WITH CAN PAY YOU MORE RETURNS, FASTER AND MUCH MORE PROFIT THAN PUBLIC SHEARS OF BIGGER COYS. BUT I MUST ADVICE THAT ANYONE INTENDING TO INVEST WITH START-UPS SHOULD CONSIDER A COY THAT HAS BEEN IN OPERATION FOR AT LEAST 1 TO 2 YEARS DOING THE SAME BUSINESS AND PROBABLY LOOKING FOR WAYS TO EXPAND. THIS KIND OF START-UP CAN BE RELIED ON BETTER THAN THE ONES THAT ARE JUST LOOKING FOR CAPITAL TO START UP THE BUSINESS. AT LEATS THEY TWO YEARS COY MUST HAVE UNDERSTOOD THE MARKET FOR SOMETIME AND DEFINITLY KNOWS THE EXPANSION OF THEIR SERVICE/BUSINESS WILL BRING MORE PROFIT WITHING THE SHORTEST POSSIBLE TIME. MAKE SURE YOU MAKE PROPER ANALYSIS OF THE sTART-UP COY U WANT TO INVEST WITH, GET TO KNOW THEIR BUSINESS AREA AND THE MARKET THEY ARE TARGETING. BUT THEN ITS ALL ABOUT YOUR FAITH IN WHAT YOU ARE GOING INTO THAT MAKES IT WORK FOR YOU. EVERY BUSINESS AND INVESTMENT INVOLVES RISK AND NO MATTER HOW MUCH THOSE PROFESSIONALS AND STOCK BROKERS TRY TO ANALYS IT(SMALL AND BIG RISK).. SOME TIMES THEY GET IT ALL WRONG AND THATS WHY YOU HEAR OF STOCK CRASH AND BIG COMPANIES FOLDING UP.
HOWEVER IT GOES, LIFE GOES ON AND PEOPLE KEEP TAKING THAT RISK AND SOME KEEP WINNING BIG AGAINST ALL ODDS.
I AM RUNNING A START-UP COY MYSELF AND I AM TALKING FROM MY EXPERIENCE. YOU CAN FIND MY COYS PROFILE ON WWW.DGR.COM.NG
DONT FORGET TO WISH ME LUCK
Re: Investing In Startup Vs Buying Shares? by NSNA: 8:20pm On Mar 08, 2013
Both have advantages and disadvantages.

But i think it is better to see for yourself and then invest in a startup.

If you loose your money to a Startup then you can blame yourself.

If you loose your money to Shares, you just loose.
Re: Investing In Startup Vs Buying Shares? by Toluth(m): 9:15am On Mar 12, 2013
@op..does ur start up mean starting up a new venture or business of your own?
Re: Investing In Startup Vs Buying Shares? by manie(m): 10:22am On Mar 12, 2013
NSNA: Which is better?

A lot of people are buying shares and loosing money when they could invest in a Startup.
With Startup at least you see a business plan and you can weight the risk Yourself.

I will rather invest in shares than in a start up company.
Re: Investing In Startup Vs Buying Shares? by AmeLonRo(m): 10:49am On Mar 14, 2013
Shares are well regulated and running an ongoing business is far easier than starting a new one. When you start a new business you have to pass through stahes before you start making money.

1 Like

Re: Investing In Startup Vs Buying Shares? by ayo84(m): 2:50pm On Mar 16, 2013
Dpros: THE TRUTH ABOUT EVERY BUSINESS IS THE FACT THAT THERE WILL ALWAYS BE RISK. THE ADVANTAGE OF STOCKS OVER START UPS IS THAT THE BIGGER COMPANIES SEEM TO HAVE GROWN IN THE SYSTEM(THEIR BUSINESS AREA) OVER YEARS AND CAN MANAGE THEIR RISK AND PREDICT OUTCOMES A LITTLE MORE BETTER THAN START-UP COMPANIES.

BUT ANOTHER TRUTH YOU MUST KNOW IS THAT A SUCCESSFUL START-UP COMPANY/VENTURE YOU INVEST WITH CAN PAY YOU MORE RETURNS, FASTER AND MUCH MORE PROFIT THAN PUBLIC SHEARS OF BIGGER COYS. BUT I MUST ADVICE THAT ANYONE INTENDING TO INVEST WITH START-UPS SHOULD CONSIDER A COY THAT HAS BEEN IN OPERATION FOR AT LEAST 1 TO 2 YEARS DOING THE SAME BUSINESS AND PROBABLY LOOKING FOR WAYS TO EXPAND. THIS KIND OF START-UP CAN BE RELIED ON BETTER THAN THE ONES THAT ARE JUST LOOKING FOR CAPITAL TO START UP THE BUSINESS. AT LEATS THEY TWO YEARS COY MUST HAVE UNDERSTOOD THE MARKET FOR SOMETIME AND DEFINITLY KNOWS THE EXPANSION OF THEIR SERVICE/BUSINESS WILL BRING MORE PROFIT WITHING THE SHORTEST POSSIBLE TIME. MAKE SURE YOU MAKE PROPER ANALYSIS OF THE sTART-UP COY U WANT TO INVEST WITH, GET TO KNOW THEIR BUSINESS AREA AND THE MARKET THEY ARE TARGETING. BUT THEN ITS ALL ABOUT YOUR FAITH IN WHAT YOU ARE GOING INTO THAT MAKES IT WORK FOR YOU. EVERY BUSINESS AND INVESTMENT INVOLVES RISK AND NO MATTER HOW MUCH THOSE PROFESSIONALS AND STOCK BROKERS TRY TO ANALYS IT(SMALL AND BIG RISK).. SOME TIMES THEY GET IT ALL WRONG AND THATS WHY YOU HEAR OF STOCK CRASH AND BIG COMPANIES FOLDING UP.
HOWEVER IT GOES, LIFE GOES ON AND PEOPLE KEEP TAKING THAT RISK AND SOME KEEP WINNING BIG AGAINST ALL ODDS.
I AM RUNNING A START-UP COY MYSELF AND I AM TALKING FROM MY EXPERIENCE. YOU CAN FIND MY COYS PROFILE ON WWW.DGR.COM.NG
DONT FORGET TO WISH ME LUCK
exactly people who take risks, make larger profits, I find it hard why people invest so much money in buying shares, when you can use that money and power a new idea or new trend, its risky also though, but I think one way to grow this country and develop young people is by investing in some of their ideas. Not all ideas see the light of day though, some are overambitious and eventally fail, I think its best to invest in those who have developed a business model which is already working and you can identify cah flow and profit maximisation and you can clearly see where your money investment will go to and ncrease their sales,output,production and profits. I also have an internet startup, and people see demand for our products ,so when we tell people ,that we need their money to drive and expand sales, they can clearly see the opportunity, cos our business model, is pretty straightforward, they see monetisation and they know what an investment can do to increase sales.
Re: Investing In Startup Vs Buying Shares? by manie(m): 4:07pm On Mar 18, 2013
It still makes a whole of sense to invest in shares of a quoted company with good management and track record than to invest in a start up. The probability of success in most start ups is negligible.

I will invest in a start up if I can own minimum of 51% of the company, and am involved in the financial and marketing of the company. The founder and promoter should limit himself to the technical aspect of the enterprise.

2 Likes

Re: Investing In Startup Vs Buying Shares? by manie(m): 4:14pm On Mar 18, 2013
ayo84: exactly people who take risks, make larger profits, I find it hard why people invest so much money in buying shares, when you can use that money and power a new idea or new trend, its risky also though, but I think one way to grow this country and develop young people is by investing in some of their ideas. Not all ideas see the light of day though, some are overambitious and eventally fail, I think its best to invest in those who have developed a business model which is already working and you can identify cah flow and profit maximisation and you can clearly see where your money investment will go to and ncrease their sales,output,production and profits. I also have an internet startup, and people see demand for our products ,so when we tell people ,that we need their money to drive and expand sales, they can clearly see the opportunity, cos our business model, is pretty straightforward, they see monetisation and they know what an investment can do to increase sales.


The promoter of the start up has parents, brothers, sisters, family, neighbours, friends etc, these should be the first set of people to believe in your idea. Your idea must have been profitable before you can invite outsiders. The invitation of outsiders in most cases is for expansion of the company, it always easy to market or get finance for a well managed company.
If people who are close to you find it difficult to invest in your idea or dream, I dont think it will be proper for any reasonable capitalist to commit fund into such venture.

1 Like

Re: Investing In Startup Vs Buying Shares? by manie(m): 4:40pm On Mar 19, 2013
Most start-up entrepreneurs want investors' funds but they do not want reduction in ownership or control.
Re: Investing In Startup Vs Buying Shares? by Nobody: 5:35pm On Mar 19, 2013
manie: Most start-up entrepreneurs want investors' funds but they do not want reduction in ownership or control.
I'm okay with giving up ownership not control simply because businesses don't do so well when the owner of the concept is not in the driver seat.
Re: Investing In Startup Vs Buying Shares? by manie(m): 12:03pm On Mar 20, 2013
Brand_new:
I'm okay with giving up ownership not control simply because businesses don't do so well when the owner of the concept is not in the driver seat.


Investors will also want to have a say on how their money is spent. Good luck to you on your search for investors' funds.

I will advice you to go for debt instead of equity.
Re: Investing In Startup Vs Buying Shares? by OIbhagui(m): 11:55pm On Mar 24, 2013
There are many business possibilities in Nigeria but as in every other thing, our evil ways don't let us make progress. Trust and honourable conduct is non-existent and so you try to do everything yourself so that a potential partner or investor doesn't shortchange you somewhere along the line. We are always looking over our shoulders because we know that we also are out to cheat others. You're considered 'smart' when you're able to cheat someone instead of being ashamed you're betraying normal human trust. Why do you think foreigners don't want to do business with us except for cash and carry?

I've had and still continue to have business ideas but I won't share; better for someone to arrive at same than for me to introduce someone because I need help only to find them take the whole idea and throw me away. I just want out of this country because we can never progress with out evil hearts
Re: Investing In Startup Vs Buying Shares? by megacash(m): 8:47am On Mar 25, 2013
Before you recommend either start up or share, we must consider the individual person involved. For instance, knowledge and long term plan of the person. Focusing on shares is good for a career person that want to invest some portion of his salary for the raining day. That implies he should diversify his investment, like also investing in real estate.

Starting a business is not free lunch. It's easier to succeed in a business if you have acquired knowledge of the industry. Otherwise, I will implore you to get a good mentor doing well in the industry to guide you. Another factor that will help entrepreneur to succeed is the ability to have access to continuous cash flow.
Re: Investing In Startup Vs Buying Shares? by elvis10ten(m): 9:14am On Apr 05, 2013
manie:


The promoter of the start up has parents, brothers, sisters, family, neighbours, friends etc, these should be the first set of people to believe in your idea. Your idea must have been profitable before you can invite outsiders. The invitation of outsiders in most cases is for expansion of the company, it always easy to market or get finance for a well managed company.
If people who are close to you find it difficult to invest in your idea or dream, I dont think it will be proper for any reasonable capitalist to commit fund into such venture.
GUY YOU NEED TO UPGRADE O. I WILL SUGGEST YOU HAVE A LOOK AT SOME ICT/TECH BLOG AND SEE THAT NOT ALL OR MOST OF THE PROMISING START-UP WERE NOT FUNDED BY RELATIVES OR FRIENDS. I THOUGHT YOU READ THAT ESSAY I POSTED IN MY THREAD ?. NEXT YOU WILL SAY IS THAT THEIR FATHER GAVE THEM A PLACE TO RUN A COMPANY OR THEY BOUGHT A PC FOR THEM. A living example is "TRIMIT".
Re: Investing In Startup Vs Buying Shares? by manie(m): 7:08pm On Apr 05, 2013
elvis10ten: GUY YOU NEED TO UPGRADE O. I WILL SUGGEST YOU HAVE A LOOK AT SOME ICT/TECH BLOG AND SEE THAT NOT ALL OR MOST OF THE PROMISING START-UP WERE NOT FUNDED BY RELATIVES OR FRIENDS. I THOUGHT YOU READ THAT ESSAY I POSTED IN MY THREAD ?. NEXT YOU WILL SAY IS THAT THEIR FATHER GAVE THEM A PLACE TO RUN A COMPANY OR THEY BOUGHT A PC FOR THEM. A living example is "TRIMIT".



You can not force an investor to invest in what he does not believe in. I wish you all the best in your search for investors.

Entrepreneurs who did their homework will not beg for long before investors' funds start chasing them.
Re: Investing In Startup Vs Buying Shares? by Peterwins(m): 8:15pm On Apr 05, 2013
NSNA: Which is better?

A lot of people are buying shares and loosing money when they could invest in a Startup.
With Startup at least you see a business plan and you can weight the risk Yourself.

Is it in Nigeria or the USA?
Re: Investing In Startup Vs Buying Shares? by elvis10ten(m): 8:15pm On Apr 05, 2013
manie:



You can not force an investor to invest in what he does not believe in. I wish you all the best in your search for investors.

Entrepreneurs who did their homework will not beg for long before investors' funds start chasing them.
IN NIGERIA THEY BEG OTHER COUNTRIES NO.
Re: Investing In Startup Vs Buying Shares? by Peterwins(m): 8:41pm On Apr 05, 2013
Investing in a start-up also depends on the line of business (industry). However the word start-up is synonymous with tech firms (ICT) in the USA.

(1) (Reply)

Ibeju-lekki has suddenly become an Irresistible Investment Site For Investors! / Earn Money Just By On Zwerl Platform / I Need Urgent Suggestions On Where To Put This 3m

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 65
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.