{"id":37315,"date":"2013-04-05T15:04:35","date_gmt":"2013-04-05T19:04:35","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37315"},"modified":"2013-04-05T15:04:35","modified_gmt":"2013-04-05T19:04:35","slug":"how-to-lock-in-an-8-annual-yield-as-a-diy-venture-capitalist","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/05\/how-to-lock-in-an-8-annual-yield-as-a-diy-venture-capitalist\/","title":{"rendered":"How to Lock in an 8% Annual Yield as A DIY Venture Capitalist"},"content":{"rendered":"

By Aaron Gentzler<\/strong><\/p>\n

A groundbreaking new business, upstart.com<\/a>,
\nbuilt by a group of ex-Google employees, allows you to invest in the
\nfuture endeavors of promising college graduates for as little as $100.<\/p>\n

Upstart allows you to become a venture capitalist… from your own
\nhome… using just your computer and an Internet connection.<\/p>\n

That’s because, as the graduate you back embarks on a career or
\nstarts their own business, you receive a portion of their income for a
\nset time.<\/p>\n

Investing in startup businesses is highly risky. The vast majority
\nof startups go to zero. If you invest in a startup, chances are good
\nyou’ll lose your money.<\/p>\n

But if you invest in a promising college grad, chances are good that
\nyou’ll reap a high return on your investment as they pay your loan
\nback through a small portion of their future income.<\/p>\n

As I’ve written before<\/a>, the US education system — with its sky-highs costs — is broken and saddles young people with unpayable debt.<\/p>\n

Upstart.com gives promising, motivated young grads a forum to
\nadvertise themselves and collect backing from investors — people like you<\/em>.
\nAnd unlike the broken college loan system, Upstart borrowers have to
\nstart paying back their loans only once they start making money.
\n(Upstart borrowers must pay back a percentage of any income over $30,000
\nfor at least a decade.)<\/p>\n

Upstart spends a lot of time ensuring that the grads you invest in
\nhave strong earnings potential in the future. It verifies a student’s
\nidentity, academic record, creditworthiness, work record… and even
\ntest scores… before that student can seek funding. So you don’t have
\nto worry about vetting whom you are loaning your hard-earned cash to.<\/p>\n

Upstart uses what it calls a “pricing engine” to project each
\napplicant’s future income over the expected lifetime of an Upstart loan
\ncontract. This engine uses data from other graduates with similar
\nbackgrounds and achievements.<\/p>\n

Upstart targets an average annual 8% return for investors. This is
\ncertainly tempting, with the yield on the 10-year Treasury note
\nlanguishing at 1.8%. But be aware that Upstart does not have a long
\ntrack record of returns. So your actual return could be higher or lower
\nthan 8%.<\/p>\n

Of course, no investment is risk-free. And Upstart allows you to
\nstart diversifying your income streams outside the stock market —
\nwhich carries its own risks.<\/p>\n

Even better, Upstart also allows you to use your saved capital to support the idea leaders of tomorrow’s business world.<\/p>\n

Let me give you some real-world examples…<\/p>\n

Chris S. will graduate from the University of Chicago later this
\nspring. He’s already started a business called Maroon Collegiate
\nSportswear. The company makes high-quality clothing inspired by
\nuniversity history.<\/p>\n

Chris is looking for backers on Upstart.com to build his business and take it to other schools. Chris is graduating from college debt-free<\/a> and wants to focus his full attention on taking Maroon as far as it can possibly go.<\/p>\n

Ian S. from Stanford’s Graduate School of Business recently reached
\nfull funding at Upstart.com for his project to build a health
\ncare-specific application for the new Google Glass device.<\/p>\n

And Brodie Y. from the University of Washington recently reached
\nfull funding to launch a startup that he believes could revolutionize
\nonline grocery shopping.<\/p>\n

Right now, you need to be an accredited investor to start supporting
\ngrads through Upstart. That means having a net worth of more than $1
\nmillion or an income that has exceeded $200,000 for the past two years.
\nBut I expect this to change, as Upstart and other peer-to-peer lending
\nbusinesses gain acceptance.<\/p>\n

If you are an accredited investor, this could be a great way to pick
\nup an extra income stream outside the stock and bond markets. If you
\nare not an accredited investor, keep an eye on developments. My bet is
\nthat in two to three years, this kind of income-generating opportunity
\nwill be open to all.<\/p>\n

And when that happens, it will fully replace the broken college loan system young Americans are saddled with today.<\/p>\n

Check out upstart.com<\/a> for full details.<\/p>\n

Best regards,<\/p>\n

Aaron<\/p>\n

P.S. If you are not yet an accredited investor, there are plenty of
\nother unconventional ways to pick up extra income outside the stock and
\nbond markets. For instance, you can turn an obscure law signed by
\nPresident Ford into three ultra-safe “off market” streams of income. Click here to learn more.<\/strong><\/a><\/p>\n

\n
\n

Disclaimer<\/span><\/span><\/span><\/h3>\n
\n

Article brought to you by Inside Investing Daily. Republish
\nwithout charge. Required: Author attribution, links back to original
\ncontent or www.insideinvestingdaily.com<\/a>. Any investment contains risk. Please see our disclaimer<\/a>.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Aaron Gentzler A groundbreaking new business, upstart.com, built by a group of ex-Google employees, allows you to invest in the future endeavors of promising college graduates for as little as $100. Upstart allows you to become a venture capitalist… from your own home… using just your computer and an Internet connection. That’s because, as … <\/p>\n

Continue reading “How to Lock in an 8% Annual Yield as A DIY Venture Capitalist”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37315","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37315"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37315\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}