Often, the most exciting part of new technology is the investment and business opportunities that come along with it. Web 2.0 presented many opportunities for people like Facebook CEO Mark Zuckerberg and Amazon CEO Jeff Bezos, making them some of the richest people in the world. A similar set of benefits will be available from Web 3.0 and the metaverse. Let’s take a look at some of the ways you can invest in the metaverse.
Angel Investment
The term angel investor refers to an individual who invests in a business in the very early stages of a startup. You might hear angel investors referred to as seed investors or seed partners as well. An angel investor can be anyone from family members to highnet-worth individuals who believe that the startup has the potential to become the next big thing. Angel investors receive equity in exchange for their investment. Without this initial push, most start-ups get stuck on the idea and never reach actualization. That’s why angel investment is essential in most small businesses.
The tech industry is especially popular with angel investors. That’s because most tech start-ups don’t need a whole lot of start-up money. It only takes a few computers and a wireless connection to launch websites, apps, and software. If the idea is successful, the investment pays off better than any altcoin ever can. The business model is scalable and lucrative, making angel investment a popular happy hour topic in places like Silicon Valley.
You can enter the business side of the metaverse through angel investment. Although you should be aware that this kind of investment is extremely risky, as most startups fail in their first few years. On the other hand, when they do take off, they can make you a multi-millionaire in a matter of a few years. So if you have your heart set on playing big, angel investment is one to consider.
Finding the start-up to invest in might be challenging. There are a few options you can follow. First, you can join angel investment networks. These networks are investment groups that specialize in seed funding. Through it, you can connect with like-minded people and successful investors who have built their fortunes picking the right startups. Many start-ups pitch to these networks regularly. You can also attend events hosted by these networks to meet fascinating entrepreneurs.
Your second option is to window shop at incubation centers. Incubation centers are appropriately named since they offer the same services to startups that a regular incubator does for a chicken. They provide office space, supplies, computers, free WiFi, consulting, and more. They also arrange meetings between entrepreneurs and investors. In that regard, the incubation center provides these benefits in exchange for equity in the start-up, so they are their own angel investors. Although, they do so on a large scale and are more hands-on in the development of startups.
When selecting a start-up, always look at the team before the idea. A good team will be able to evolve and scale their ideas. Ask the team about their background and learn about them as much as you can. This will ensure mutual trust and a solid foundation for your business deal. Consider asking your potential business partners what their vision is for the metaverse since you're looking to invest in it. Ask about the team's experience with machine learning, artificial intelligence, and augmented reality. All of these will allow you to better understand your business partner's vision and whether it matches your own.