Artificial intelligence (AI) can write comprehensible emails and pass bar exams — abilities that seemed like a distant sci-fi future as little as two years ago.
Now, technology is an integral part of business communication, marketing and academia, and it’s on track to influence many other aspects of daily life. It’s sure to result in the creation of new tech giants like Alphabet Inc. and Amazon.com Inc. But this time, you won’t have to wait for an initial public offering to invest in them.
Click here to check out a venture product that invests in tech startups on your behalf.
Today’s tech companies stay private for much longer than companies born in the early 2000s. As a result, the lion’s share of returns end up in the hands of private investors. Hedge funds are well aware of this, which is why they impose hefty fees for access to pre-IPO companies. As a result, they and other gatekeepers are the only viable investors during a company’s early stages.
You can still invest in those companies once they go public, but the profits likely will be breadcrumbs compared to private investors who purchased their stakes early on.
While investing in pre-IPO companies paves the way for life-changing gains, it’s riddled with risks. But diversifying your venture capital (VC) portfolio can significantly offset those risks.
Online investment platform Fundrise’s new venture product allows you to invest in a diversified portfolio made up of high-growth, pre-IPO tech companies, and it comes with advantages that an aspiring angel investor would be hard-pressed to find elsewhere.
No. 1 is the exposure an affiliation with Fundrise provides. As one of the world’s largest investment platforms, Fundrise has the power to promote startups to over 2 million people through its app, which can accelerate their growth.
Fundrise also is a tech company that employs more than 100 engineers. The company’s hands-on expertise in developing, launching and marketing tech products exceeds that of most hedge funds and VC firms.
Fundrise’s leadership has been warning about the valuation decreases many AI companies will experience for some time. But that will create a once-in-a-lifetime opportunity to invest in them while the AI revolution is still in its infancy.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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