Ventures


Dynamos in Real and Financial Markets




A program of investing for growth can be pursued through spry ventures in the real economy, the financial forum, or a combo of both. In certain cases, a single foray into the marketplace could end up spanning multiple modes of investment.

A case in point is a business angel who provides a loan to a brand-new venture. Based on an agreement set up at the outset, or by negotiation at a later date with the principals, the loan could be converted in due course into a stash of common stock in the company. 

The business might then list its equity on a stock exchange by way of an initial public offering (IPO). After the debut, the angel investor could sell their shares to the other participants in the open market. In this way, a loan to a private firm in the beginning may turn into an equity position which is later liquidated in the public arena.

From a larger stance, a nimble investor could take up multiple modes of investment as a matter of course. On the downside, the broad-based approach would require a bigger commitment of time and effort in order to handle with finesse. For this reason, the expansive strategy would be inapt for a part-time investor hamstrung by a shortage of time or energy.

On the upside, though, the multiplicity of channels should open the door to a wider range of opportunities. For this reason, the diversified ploy of investing in the real economy as well as the financial ring could well justify the bigger workload.

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