Diversification

Why diversify?

Diversification aims to maximize profits by investing in different assets. This practice is essential for achieving long-term financial goals while minimizing risk for venture investors.

Despite the companies listed on our Marketplace being carefully selected and with a track record of revenue and success, nobody can predict the future.

But, there are still some benefits to late venture investing compared to others.

Factors that drive returns in the public equity market, such as volatility, investor sentiment, quarterly reporting, and seasonality, have little to no effect on the private market.

Venture investments are less manipulative, as the valuation is based on assessing the business and the company's prospects, making it an excellent diversification tool.

How to diversify using the Raison app

The easiest way to diversify your venture portfolio is to choose by industry, stage, and base market. If you look at the companies in our Marketplace, you will see that each has a dedicated set of tags.

For example, let's look at Klarna – the company is in the Fintech industry, is in its late stage, and is based in Sweden.

The scale of investments in Fintech amounts to billions and is growing every year, and technological leadership is becoming the main priority of global companies.

That's why most of our companies listed in the Marketplace are in the tech industry, like Biotech, AItech, Fitchen, and many more.

How to start

To create a diverse portfolio, start by researching the market, competitors, technology, metrics, founders, and management.

To start, choose a few industries that you are most interested in.

The companies listed on our Marketplace are companies we genuinely believe are shaping our future. That's why we choose them. Have the same mentality when it comes to investing.

Decided on the industry? Look out for the companies in those industries on our Marketplace – note the stage they are in.

We have a video dedicated to explaining the lifecycle of a startup and all the stages it goes through; you can find it on our youtube channel.

Last but not least, note the location and market that the company operates in – is the company only local, or is it already expanding globally?

These are essential to remember as they directly affect the company's performance and potential return on investment.

Conclusion

Considering all those factors above, you can now choose the capital you are ready to invest – our offerings are based on the previously mentioned factors.

There is a variety of low-entry options if you have a limited budget. For example, you can invest in InVision for €2.59.

After that, the only thing left to do is invest!

Note that you should still diversify not only a venture capital portfolio but also use other investment classes like stocks, bonds, real estate, crypto, and others.