Publication: SEEDRS
September 2022

1: Diversifying Your Portfolio Is Important
Portfolio diversification is an investment technique that minimizes long-term risk. It involves investing in different assets and asset classes. You may have investments in real estate, crypto, and Gold, among other things. Investing in an asset that might suddenly lose value can be a scary prospect. Although over time, investment values will fluctuate and prices may change, if you have your money tied up in one type of investment, you might lose all of the values in this investment. This is why by diversifying your investments, so that they don’t rely on each other, you can reduce the risk of losing everything if one of your investments fails.

2: What you need to know about startups that can diversify your portfolio
One way to become a millionaire is by investing in successful startups. These investments take time, and the investors probably invested in many businesses that failed before investing in a successful one but they are still great opportunities to generate a high return on investment.

3: The impossibility of predicting markets
When the pandemic started, it severely affected the tourism industry. Travel and tourism-related investments decreased significantly from 2019 to 2021 because of the pandemic. This forced many investors to diversify their investment portfolio away from travel and tourism startups. We recommend reducing the risk of failure by diversifying your investments across a variety of different companies so that the failure of one company would not impact the success of the other companies. Click here to find some helpful startup opportunities with the potential to diversify your portfolio.

4: How to diversify your portfolio when investing in early-stage businesses: 3 simple ways

⦁ First things first do your research
Know what you’re investing in and why. Investors may want high returns by pouring capital into early-stage industries with a lot of risks while being able to ensure they are investing in something they care about. To avoid any confusion, make sure you ask and understand the goals of the company before lending your money. Seedrs has forums as well as bi-weekly videos where founders answer any questions you may have.

⦁ How different industries can profit
For example, investing in different industries helps to reduce the risk of your portfolio when one industry is performing poorly. You might also find your diamond in the rough in a completely different industry than what you would have thought.

⦁ Invest through established and reputable platforms
Unless you know a founder, it can be hard to get in on deals they’re raising capital for. Seedrs offers a credible platform that we monitor thoroughly to ensure their investors are fully protected and able to access the best deals.

This article describes the importance of investing in a diverse portfolio. If you want to know more about investing in the fastest-growing European startups, just click here now.