How do you become a venture capitalist or angel investor if you have no money of your own?

Question

I want to invest in other start-ups and make this my business. How do you do this? Can I do this with no Net Worth of my own, but with excellent credit? Would it be more lucrative to become a 'partner' in firm instead of a VC or AI?

Answer 1

You can't. The essence of venture capitalism is that you venture your own money, with the understanding that there is a good chance of losing all of it, and some chance of making a pile. You can borrow against your good credit to invest in something, but need to be sure that you can pay back if the venture goes bust.

Answer 2

Their activity share could be in keeping with their valuation of your product/business enterprise and your negotiating skills. many times, the quicker you're from the belief-progression-prototype-complete product timeline once you get your investor, the decrease your share could be, because you're able to have invested much less time and money on your thought. issues to evaluate: ENVY RATIO - this ratio compares how plenty greater the investor could pay for a a million% share as against what the founders paid for their a million% share. traders normally have a cap for this ratio - they do no longer prefer to OVERPAY you or supply you too plenty share because they're putting up a great number of the money.

Answer 3

You don't. By definition. First earn some money before you look for ways to invest it. Investing borrowed money in unpredictable ventures is a recipe for disaster.

Answer 4

You can't, you have to have money to loan it. excellent credit can get you a loan but not to loan to other people.

You could work at those firms but the person with the money makes the decision.

Answer 5

What kind of start-ups are you looking to invest in?