4 Startup Companies To Invest In for 2022
The startup investing market is booming. However, until recently, most people couldn’t invest in these companies. In particular, it was only after the United States passed the JOBS act that such investments became possible for non-accredited investors.
With startup investing now available to everyone and hit television shows like Shark Tank showing millions of viewers how fruitful these investments can be, it makes sense that startup investing is taking the retail world by storm.
4 Best Startup Companies To Invest In
Investing in startups is exciting, but it doesn’t come without serious risks. Total loss of capital is a possible outcome of any investment, especially in a startup. Those who are considering investing in this space need to pick their investments wisely.
The following are some of the best startup companies to invest in at the moment.
Minimum Investment: $1,001 on SeedInvest
Cytonics is a biotechnology company focused on the development of CYT-108, a treatment for osteoarthritis. This is a high-value space where consumers are already spending hundreds of billions of dollars per year on therapies with temporary efficacy.
What sets Cytonics apart is that the company is targeting the root cause of the condition, meaning they may actually be able to cure it once and for all. If successful, the company could become a leader in a market worth over $6 billion per year.
Minimum Investment: $100 on Wefunder
Fathom is another company taking advantage of the shift to the work-from-home environment but in an entirely different way. The company is solving the problem of taking notes while on video conferences.
Fathom’s technology records conferences, automatically produces transcripts and uses artificial intelligence to create summaries for easy digestion of the notes later.
Minimum Investment: $100 on Wefunder
Reflect is an expansive note-taking app that allows users to import calendar events quickly and link their notes to one another — both in a secure environment online and offline.
The company raised nearly three-quarters of a million dollars from 242 investors in its first week on Wefunder.
Minimum Investment: $496.80 on StartEngine
World Tree is more than a potential opportunity to make money — it’s an opportunity to solve serious environmental problems. The company aims to reduce greenhouse gas emissions, help farming become profitable and solve the growing problem of harvesting wood from natural forests.
It does so by providing Empress Splendor trees — one of the fastest-growing lumber trees in the world — to farmers at no cost and taking a profit share upon harvest. It had attracted more than $229,000 from 96 investors at the time of writing this article.
Though the abovementioned startups offer exciting investment opportunities, as with all startups, they come with significant risks. Take time to do your research and make educated decisions when you invest in early-stage companies.
FAQNon-accredited investors haven't always been able to invest in startups. As the concept grows in popularity, more and more questions are popping up. Here are the answers to some of the most common.
- Are startups worth investing in?
- Startups have a 90% failure rate, and about 10% of those fail in their first year. So this style of investing isn't for the faint of heart. On the other hand, when startups make it big, investor returns are typically hard to ignore.
- How do I start investing in startups?
- The easiest way for a non-accredited investor to invest in a startup company is to do so through an equity crowdfunding platform. These platforms help fund companies by pooling investments from a large group of investors. They also give investors an easy way to find the types of startups they're looking for.
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- Embroker. 2022. "106 Must-Know Startup Statistics for 2022."
- SeedInvest. 2022. "Investing in Startups: A Guide for Non-Accredited Investors."
- Wefunder. "INVEST IN FATHOM AI NOTETAKER (YC W21)."
- Wefunder. "INVEST IN REFLECT."
- StartEngine. "World Tree USA LLC."
- SeedInvest. "Cytonics Corporation."
- Allied Market Research. "Osteoarthritis Therapeutics Market."
- The Wall Street Journal. 2022. "A Booming Startup Market Prompts an Investment Rush for Ever-Younger Companies."
- U.S. Securities and Exchange Commission. "Spotlight on Jumpstart Our Business Startups (JOBS) Act."