Tips for investing in startup companies?

Ya, good question — startup investing not instant profit, but if the startup grows big, your returns can multiply a lot.

Example calculation:

Let’s say you invest RM10,000 in a startup at RM1 million valuation. That means you own:

RM10,000 / RM1,000,000 = 1% of the company.

If a few years later, the company grows and gets acquired at RM20 million, your 1% is now worth:

1% × RM20,000,000 = RM200,000

So your RM10k turns into RM200k — that’s a 20× (2000%) return.

But also remember, if the startup fails, you might lose the full RM10k. That’s why diversification and patience are key — invest small amounts into a few startups and wait for the winners to pay off big.

Don't.

Or at least not until you have LOTS of spare cash to burn. 

Investing in startups is NOT easy, and is a very long process. Plus you'll need to diversify across multiple companies (at least 15 - 20) to see any real returns.

It takes MUCH MORE MONEY to diversify across many companies, and startups that are 'safer' typically require larger amounts of investments.

If you have $500k to invest across 20 companies, that's just $25k per company average, which may be too low for some growing companies.

Of course you could go with the super early stage stuff, but the failure rate is almost 100%.

I'm not saying don't invest in startups, as I have many friends who have become insanely rich from angel investing, but invest in things (and teams) you truly believe in.