Yesterday morning, as I strolled through midtown Manhattan on my way to work, I passed a stream of mysterious-looking women.
They were dressed in turbans and flowing robes, and I soon realized what I was looking at:
Fortune-Tellers.
They’d been hiding in their air-conditioned lairs all summer. But with the arrival of crisp autumn weather, they’d set up shop on the sidewalk, promising to reveal how each passerby would find love, fortune, and happiness.
I did my best to avoid them. But when I finally arrived at my office, I happened to stumble across a different type of “fortune-teller.”
This one was British, and impossible to avoid.
And I soon came to believe that this particular clairvoyant could predict my future—and could predict your future, too.
This Crystal Ball Is Worth Paying Attention To
Before I tell you more, let me get you up to speed on something…
It’ll help you understand why this particular crystal ball is worth paying attention to.
You see, for the past 83 years, it’s been illegal for most people in the U.S. to invest in private start-up companies.
According to laws put in place by the U.S. government, only our wealthiest citizens have been able to invest in these young companies.
But on May 16th, 2016, the SEC changed these laws:
Now everyone in the U.S. can invest in start-ups.
This is great news. But investing in start-ups is brand new for most folks, and they’re unsure about the risks and potential returns.
But here’s where my British fortune-teller comes into play...
My British “Fortune-Teller”
Unlike the U.S., the United Kingdom started allowing its citizens to invest in start-ups four years ago.
Their results over these four years offer us a crystal ball—a realistic look at what the future holds for investors in the U.S.
And to put it simply, our future looks bright:
You see, last week, a funding platform in the UK called Seedrs released its results. (Note: funding platforms are special websites that feature start-up investment deals, and allow ordinary people to invest in them).
Since Seedrs launched in July 2012, it’s raised nearly $200 million for more than 380 deals.
That’s a lot of deals. In fact, after just four years of existence, Seedrs has become, literally, the UK’s most active investor in early-stage companies.
Even more interesting, however, are the returns its investors have earned—and the sectors where they earned them.
The Most Profitable Start-up Sectors
The overall returns from Seedrs are impressive...
But a few sectors stand out from the rest, and these sectors are where I believe U.S. investors should start their search for profits.
For example, Consumer Products start-ups on Seedrs have earned average annual returns of nearly 18%.
And investors who backed Food & Beverage start-ups have done even better—they’ve earned average annual returns of nearly 23%.
To put that in perspective, 23% is nearly double the 12.8% returns that the S&P 500 delivered during this period.
And keep in mind, those 23% returns will likely keep going up…
Give It Time…
You see, when you invest in start-ups, you’re getting in on the ground floor…
Generally speaking, it takes time before a young company becomes mature enough to get acquired or go public—and that’s when these start-ups provide investors like you with a return.
In other words, although a handful of Seedrs’ start-ups have already been acquired and have quickly provided investors with profits, most of these companies are still maturing.
A few years from now, after more of its companies get acquired or go public, the returns from Seedrs’ start-ups will likely be much higher.
Pass the Baton
Seedrs has proven that individuals like you can succeed as angel investors—and that certain easy-to-understand sectors can yield quick profits.
This is fortune-telling at its best.
If you’d like to invest in Consumer Products or Food & Beverage start-ups in the U.S., explore funding platforms like CircleUp or Republic.
Both platforms currently feature investment opportunities in these sectors.
Best Regards,
Founder
Crowdability.com