{"id":11496,"date":"2022-12-07T16:36:53","date_gmt":"2022-12-08T00:36:53","guid":{"rendered":"https:\/\/angelpowwow.com\/?p=11496"},"modified":"2022-12-21T07:54:51","modified_gmt":"2022-12-21T15:54:51","slug":"fantasy-startup-how-to-invest-in-startup-companies","status":"publish","type":"post","link":"https:\/\/angelpowwow.com\/fantasy-startup-how-to-invest-in-startup-companies\/","title":{"rendered":"Fantasy Startup, How To Invest In Startup Companies"},"content":{"rendered":"\n<p>Welcome to Fantasy Startup, How To Invest In Startup Companies, part one of my two-part review of Doriot and their offerings.&nbsp; Part 1&nbsp;will focus on Doriot&#8217;s Fantasy Startup app (available for iOS and Android).&nbsp; Part 2 will dive into the Doriot Venture Club and what it brings to the table.<\/p>\n\n\n\n<p>If you&#8217;re here, you&#8217;ve probably heard the following terms or phrases:&nbsp;<a href=\"https:\/\/angelpowwow.com\/what-is-angel-investing\/\">angel investing<\/a>, crowdfunding, investing in startups, etc., and you want to know more about it.&nbsp; More importantly, you&#8217;re looking for information on how to get started investing in this asset class yourself.<\/p>\n\n\n\n<p>Unlike this shameless plug, referring you to my&nbsp;<a href=\"https:\/\/angelpowwow.com\/blog\/\">many articles<\/a>&nbsp;on the subject, Doriot has taken a different approach.&nbsp; They have developed an app; with educational and simulation features; to help teach you some of the terms and aspects of investing in startups.<\/p>\n\n\n\n<p>If you find this post helpful, please check out my other&nbsp;<a href=\"https:\/\/angelpowwow.com\/category\/education\/\">Educational<\/a>&nbsp;posts for even more information.<\/p>\n\n\n\n<p><em>THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE SEE MY&nbsp;<a href=\"https:\/\/angelpowwow.com\/affiliate-disclosure\">AFFILIATE DISCLOSURE<\/a>&nbsp;FOR MORE INFORMATION.<\/em><\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li ><a href=\"#how-to-invest-in-startup-companies\">How To Invest In Startup Companies<\/a><\/li><li ><a href=\"#simulated-investing\">Simulated Investing<\/a><\/li><li ><a href=\"#gamification-competition\">Gamification\/Competition<\/a><\/li><li ><a href=\"#what-truly-matters-results\">What Truly Matters: Results<\/a><\/li><li ><a href=\"#conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<p>Let&#8217;s dig into the Fantasy Startup app to see what it has to offer&#8230;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/How-To-Invest-In-Startup-Companies-507x1024.png\" alt=\"\" class=\"wp-image-11504\" width=\"273\" height=\"547\" title=\"\"><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"how-to-invest-in-startup-companies\">How To Invest In Startup Companies<\/h3>\n\n\n\n<p>Arming you with the knowledge required to be successful is the real reason for the app&#8217;s existence.&nbsp; Doriot&#8217;s end goal is to educate the masses and get them to a point where they are knowledgeable and comfortable with understanding an opportunity, vetting it, and going through the investment process.&nbsp;&nbsp;<\/p>\n\n\n\n<p>They are also working on getting this training recognized by the&nbsp;<a href=\"https:\/\/www.sec.gov\/\" target=\"_blank\" rel=\"noopener\">SEC<\/a>;&nbsp;so that those who complete it and pass the course will be considered Accredited Investors under the Five Factors of Financial Sophistication clause.&nbsp; If successful, additional investing opportunities will open up to you as an accredited investor.<\/p>\n\n\n\n<p>Doriot has loaded this app with 150 lessons, focusing on various term definitions; to help you understand them and how they apply to crowdfunding opportunities.&nbsp; Short videos and text content bring it all together.&nbsp; This bite-sized approach helps to keep you focused and prevents the more common flood of information that overwhelms the user that most other solutions provide.<\/p>\n\n\n\n<p>Each lesson is also followed up with a quiz that, if passed, will add more virtual currency to your investment pool (more on that later) and count toward your overall course completion.&nbsp; You&#8217;ll need to pass a certain number of quizzes to complete the course officially.<\/p>\n\n\n\n<p>Overall, Doriot does an excellent job imparting the knowledge you need to understand the terms, but learning modules and quizzes aren&#8217;t all they offer&#8230;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-497x1024.png\" alt=\"\" class=\"wp-image-11505\" width=\"208\" height=\"430\" title=\"\" srcset=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-497x1024.png 497w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-73x150.png 73w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-994x2048.png 994w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-24x50.png 24w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Simulated-Investing-49x100.png 49w\" sizes=\"(max-width: 208px) 100vw, 208px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"simulated-investing\">Simulated Investing<\/h3>\n\n\n\n<p>Yes, knowledge is critical, but applying that knowledge is just as important, if not more so.&nbsp; Enter the investment simulator.<\/p>\n\n\n\n<p>The Fantasy Startup app includes 50 opportunities that simulate what you might find in the real world.&nbsp; You&#8217;ll be presented with a brief video on the company and a short text snippet to help you vet the opportunity.&nbsp; Be sure you&#8217;re ready before you look at the opportunity; because you only get 5 minutes to review the data and make a decision.<\/p>\n\n\n\n<p>Considering whether or not to invest in a particular opportunity isn&#8217;t just a yes or no decision either&#8230;&nbsp; You must figure out how much of your financial resources to devote to this opportunity-something you need to keep an eye on, as the money tree is limited.<\/p>\n\n\n\n<p>Like in the real world, some companies will raise additional rounds, others will fail immediately, and a handful will have an exit event.&nbsp; For those offering additional funding rounds, you&#8217;ll receive another presentation with that same 5-minute time limit.&nbsp; It&#8217;s up to you to decide if you want to add more to that bucket or not.&nbsp; As for the exits, some may return high multiples, close to what you invested or even less than you initially put in.<\/p>\n\n\n\n<p>As time passes, the app will notify you of new rounds, exit events, and failures.&nbsp; The experience is almost as if you&#8217;re investing in real life.<\/p>\n\n\n\n<p>Now, I&#8217;m a bit strange, and I find that concept exciting already.&nbsp; Still, Doriot has added a few additional components to make the app more fun&#8230;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-499x1024.png\" alt=\"\" class=\"wp-image-11506\" width=\"186\" height=\"381\" title=\"\" srcset=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-499x1024.png 499w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-146x300.png 146w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-73x150.png 73w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-768x1577.png 768w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-748x1536.png 748w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-997x2048.png 997w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-624x1282.png 624w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-24x50.png 24w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification-49x100.png 49w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Gamification.png 1284w\" sizes=\"(max-width: 186px) 100vw, 186px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"gamification-competition\">Gamification\/Competition<\/h3>\n\n\n\n<p>Apps are great and all but unless you&#8217;re just looking to read a book or something, making it fun increases user interaction and learning retention.<\/p>\n\n\n\n<p>Think of it this way:&nbsp; Can you remember that obscure equation from your high school junior-year math class?&nbsp; What about that year&#8217;s most famous song (or, better yet, every lyric in that song)?&nbsp; Chances are, you&#8217;re going to remember a lot more of that song vs. the equation.<\/p>\n\n\n\n<p>Why is that?&nbsp; Because the song was fun and engaging.&nbsp; You probably played it over and over and maybe even bounced around a bit (I think they called it dancing, but a dancer I am not).&nbsp; It&#8217;s a good bet that you didn&#8217;t do the same with the math equation.<\/p>\n\n\n\n<p>Doriot has gamified the app further by introducing competition.&nbsp; How are you fairing against other users of the app?&nbsp; Who has the higher return multiple?&nbsp; What about the overall profit\/loss amount?&nbsp; You can compare globally or in the group you&#8217;re a member of (you can set up your group or join someone else&#8217;s).<\/p>\n\n\n\n<p>Education and gaming are fun and good, but let&#8217;s talk about what truly matters when investing: Results&#8230;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Results-499x1024.png\" alt=\"\" class=\"wp-image-11507\" width=\"217\" height=\"447\" title=\"\" srcset=\"https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Results-146x300.png 146w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Results-73x150.png 73w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Results-24x50.png 24w, https:\/\/angelpowwow.com\/wp-content\/uploads\/2022\/12\/Results-49x100.png 49w\" sizes=\"(max-width: 217px) 100vw, 217px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"what-truly-matters-results\">What Truly Matters: Results<\/h3>\n\n\n\n<p>Ultimately, the goal is to absorb the knowledge, apply what you&#8217;ve learned, and become comfortable with the process.&nbsp; Remember, Doriot is trying to get you to a point where you&#8217;re a more informed investor.&nbsp; The more you understand the content and apply its teachings, the better off you will be.<\/p>\n\n\n\n<p>Results matter in this app.&nbsp; The goals are to:<\/p>\n\n\n\n<ul>\n<li>Invest in at least 25 startups<\/li>\n\n\n\n<li>Pass a minimum of 50 of the 150 quizzes (and frankly, you should strive for more than that)<\/li>\n\n\n\n<li>Earn a profit that meets the minimum required for certification<\/li>\n<\/ul>\n\n\n\n<p>If you meet those goals, you&#8217;ll not only receive a certificate, but you can move on to joining Doriot&#8217;s Venture Pool (see below).&nbsp;&nbsp;<\/p>\n\n\n\n<p>The Venture Pool is where you can invest your own real money in opportunities presented by Doriot to the members.&nbsp; Because Doriot is pooling resources (your investment and the investments of other members), you can get in on many deals for less than the minimum when investing directly.&nbsp; Investing as a group is an excellent way for those starting out or with limited budgets (think college students, etc.) to participate.<\/p>\n\n\n\n<p>Let&#8217;s say the minimum investment for an opportunity is $500.&nbsp; For many, that&#8217;s a big chunk of change.&nbsp; Let&#8217;s say Doriot brings that opportunity to the pool.&nbsp; The pool needs to meet that minimum, not just the individual.&nbsp; You can invest as little as $10 in these opportunities; as long as the collective meets the minimum.&nbsp; Participating in a venture pool allows you to get your feet wet for real without breaking the bank!&nbsp; I&#8217;ll cover more of this in part two.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h3>\n\n\n\n<p>As you can see, Doriot came up with a fantastic way to teach people&nbsp;How To Invest In Startup Companies.<\/p>\n\n\n\n<p>They took the idea, created an app, provided lessons backed by quizzes, and even created a simulated investing environment to test out your skills.<\/p>\n\n\n\n<p>All-in-all, I think they did a great job.<\/p>\n\n\n\n<p>Do I agree with everything they put forth?&nbsp; No.&nbsp; One of the requirements to pass their course is to invest in at least 25 opportunities.&nbsp; The issue is that they only present you with 50 prospects in total.&nbsp; I get the whole diversification idea, but I fear this particular piece gives people the idea that they should invest in 50% of the opportunities they see.&nbsp; I can&#8217;t entirely agree&#8230;<\/p>\n\n\n\n<p>Yes, you should diversify, but that doesn&#8217;t mean you should be investing in every other opportunity that crosses your desk.&nbsp; Be sure to review, vet, and understand it.&nbsp; If it passes your&nbsp;<a href=\"https:\/\/angelpowwow.com\/what-is-due-diligence-process\/\">due diligence<\/a>&nbsp;process and aligns with your investment policy, invest in it.&nbsp; If not, don&#8217;t.&nbsp; I&#8217;ve found that I might invest in five to 10 percent of the deals I encounter.<\/p>\n\n\n\n<p>Still, if that&#8217;s my only gripe, it&#8217;s worth checking the app out for yourself.&nbsp; Look for Fantasy Startup in the iOS or Google Play app stores or visit&nbsp;<a href=\"https:\/\/doriot.com\/\" target=\"_blank\" rel=\"noopener\">doriot.com<\/a>&nbsp;and follow the links.<\/p>\n\n\n\n<p>I hope you found this post informative.&nbsp; I&#8217;d love to hear your thoughts.&nbsp; Have a question, concern, or additional information you think should be shared here?&nbsp; Please leave a comment below.<\/p>\n\n\n\n<p>If you&#8217;re looking for a social platform focused on angel investing and crowdfunding; where you can discuss opportunities and connect with other investors, consider joining&nbsp;<a href=\"https:\/\/angelpowwow.com\/\">Angel Powwow<\/a>.<\/p>\n\n\n\n<p>Thank you,<\/p>\n\n\n\n<p>Scott Hinkle<\/p>\n\n\n\n<p><a href=\"https:\/\/angelpowwow.com\/\">AngelPowwow.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to Fantasy Startup, How To Invest In Startup Companies, part one of my two-part review of Doriot and their offerings.&nbsp; Part 1&nbsp;will focus on&hellip;<\/p>\n","protected":false},"author":2,"featured_media":11515,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,19],"tags":[],"_links":{"self":[{"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/posts\/11496"}],"collection":[{"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/comments?post=11496"}],"version-history":[{"count":0,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/posts\/11496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/media\/11515"}],"wp:attachment":[{"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/media?parent=11496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/categories?post=11496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/angelpowwow.com\/wp-json\/wp\/v2\/tags?post=11496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}