Have you ever wanted to be part of the latest technology? The technology that defines our future lives?
If so, then Propel(x) is a solution for you. Here, you can get into the industry in multiple ways. So without further ado, let’s dive into the site.
What Is Propel(x)?
Propel(x) is a platform that allows accredited investors to diversify their portfolios by offering alternative investment opportunities, with an overall goal of funding companies that will help move humanity forward. On the site, you’ll find many startups that focus on scientific discovery and meaningful innovations.
The sectors that Propel(x) supports includes:
- Life sciences
- Transportation & aerospace
- Green technology & energy
- IT & communications
- Industrial technologies
- Food & agriculture
Keep in mind that deals within the fintech category are only available to view by Propel(x) member investors.
While it may seem similar to an equity crowdfunding website, it combines traditional venture capital with the benefits of crowdfunding. Propel(x) requires at least $5,000 to be invested, which means not everybody can become an investor, and that is why they don’t publicly promote.
Are you confused about what equity funding is? For further reading, I highly recommend you to check out our article “Investment and Equity Crowdfunding Explained”!
Who Is It For?
While this blog post will dive into the investment side of the platform, there are three ways you can profit from the website.
- Become a founder: If you’re looking to get into any of the industries Propel(x) supports, you can submit an application to pitch your idea. Once chosen to be listed on the site, you can engage with investors and get your funding!
- Become an investor: If you’re looking to diversify your investment portfolio, you can become an angel investor. Read on for more information on how to sign up and start investing.
- Become an expert: Not into investing or getting equity funding? Then, why not share your expertise? Your main job here is to share your insight and help investors find and evaluate investment opportunities.
How to Become an Investor on Propel(x)
So, you’ve decided to start investing on this platform? Great! Fortunately, the process of becoming an investor is relatively easy. All you have to do is follow these four steps.
Step #1 – Take the Propel(x) Quiz
The first step to becoming an investor is to take the Propel(x) Quiz. With it, you will find out if you fit the requirements of the platform.
From the many requirements, here are two:
- Situated in the US – Currently, only those located in the US can become accredited investors. So, if you’re located in Europe, you’re out of luck.
- Minimum ticket size of $5,000 – Propel(x) only allows investors who are willing to invest large amounts of money. If you don’t have that much, then the best alternative is to use a platform like WeFunder. However, keep in mind that there is no maximum investment limit!
Step #2 – Sign Up as an Investor
If you’ve met the requirements to become an accredited investor, you can then create your account. You can do this by selecting the “For Investors” tab on the main page.
Once the investor page has loaded, click the yellow “Start Investing” button.
Then, just fill in the information needed, and you’re ready for the next step.
Step #3 – Find Investment Opportunities
Once you’re on the dashboard, you can start looking for brand new investment opportunities. So, go ahead and find something you see potential in.
But, don’t worry; you won’t have to invest blindly! The next step explains how to evaluate each opportunity.
Step #4 – Evaluate Your Investments
Now that you’ve picked some exciting investments, it’s time to consider if it’s worth funding any of them.
Fortunately, you don’t have to second-guess yourself or go with your gut feeling. Instead, you can ask for help on the platform.
For example, you can ask the founders, customers, and industry experts questions or request access to deal evaluations.
Once you’ve reviewed your investments, you’re ready to take the last step.
Step #5 – Start Investing
You’ve created a profile, found investment opportunities, and evaluated them. Now, all that is left to do is invest in those startups.
As a reminder, be sure to have at least $5,000 lying around, as this is the minimum.
Once invested, you can always track your portfolio on your investor dashboard and receive periodic updates from Propel(x) and the founders.
If you have some lingering questions, check out the comprehensive Frequently Asked Questions page.
Risks and Rewards of Investing in Startups
Now that you know how Propel(x) works and have a clear understanding of how to become an angel investor, there are some important things to consider before moving forward.
Keep in mind that angel investing is a high-risk investment opportunity; Propel(x) even has a PDF of risk factors to browse through on its main investor page.
According to a 2006 study, about 90% of startups fail to make it to an IPO (Initial Public Offering).
However, the 10% that are successful make this risk worthwhile! Just imagine if you had invested in a startup like Uber or Tesla. You could be a multimillionaire by now!
For example, let’s say you invested $10,000 in Alphabet Inc. (better known as Google) in 1997. Well, by 2004, you would have gotten a return of 1,700%.
That means your $10,000 would have multiplied to $17,000,000!
Don’t let the risk hold you back from reaping the rewards, but be sure to do your research before investing. Luckily, Propel(x) makes this easy to do!
If you’re curious to dive even deeper into the world of equity funding, check out my Equity Crowdfunding Explained e-book.
The post Propel(x): An Opportunity to Invest in the Next “Deep-Tech” Startup appeared first on CrowdCrux: Crowdfunding Demystified.
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