In today’s podcast episode we interview Karim Nurani, Chief Strategy Officer at Linqto. Linqto makes private securities investing more accessible, affordable, and efficient. At the same time, they provide liquidity to founders, early investors, and longer term employees. Today’s topics are focused on Linqto’s Mid-to-Late Stage Investments, the life cycle of different types of investments, tips for aspiring new investors, due diligence tips and tricks helping aspiring Limited Partners as they find deals in the real estate markets.
The Life Cycle of Different Types of Investments
Karim discussed in the podcast that there different investment horizons or life cycle for different investment types which are listed below:
- Early Stage Investments typically mature within 2 - 7 years which also depends how quickly these projects or companies are being funded and if they are targeting the right marketplace. These investments are typically high-risk with 98% of them failing, but may yield very high returns if you choose the right projects.
- Mid to Late Stage Investments typically mature within 1 - 5 years considering that without mergers and acquisitions and initial public offerings. These investments typically yield decent returns of around 5% to 7% a year.
Karim's Tips For Aspiring New Investors
Listed below are Karim’s tips for aspiring new investors worthy of reflection and immediate application:
- Your Investment thesis is the crux of your investment strategy meaning that as an investor you know your own risk profile, (conservative, moderately aggressive, aggressive), your time horizon (how many years you will be holding the asset), and projected returns.
- Sector/Industry this only means what sector or industries you wanted to invest in. Of course it is an advantage if you invest in industries that you personally know or have had enough research or due diligence that takes time to do.
Due Diligence Tips and Tricks for Investors
Most aspiring limited partners jump right into investments due to the hype of making quick money. Listed below are some of Karim's tips for doing due diligence which is vital for the success of your investment portfolio.
- Do due diligence on the management team.
- Do due diligence on the status of the financials (bank accounts, financial statements).
- Don't be afraid to ask tough questions.
- Pay attention and actually listen to what's not being said.
Always remember that the money you put for investment is not easy money but hard-earned money. That is why doing all the required due diligence is advantageous for aspiring limited partners and investors since none of these things come easy. You want to make the right decision so do the work.
Karim's Thoughts About Predicting the Markets
Market predictions are often wrong as Karim said in the podcast. With that said, Karim does not want to make a prediction but say that the times have changed. Aspiring investors should ask the following questions before making a decision: Is this company or management viable investing in? Do they have an opportunity for growth and actually make money with their growth?
Who is Karim Nurani?
Karim Nurani is an entrepreneur, investor, and chief strategy officer at Linqto, a leading platform providing liquidity in the private sector. He has 30 years of experience in new business development with a focus on strategy and business transformation. As a visionary who can assess business models from the perspectives of both an executive and investor, Nurani is responsible for the formation and success of over a hundred startups ranging from mining to process manufacturing. As an executive at Keiretsu Connect, and throughout his time with Bay Angels, Sandalwood Ventures and other entities, he has guided investors and new venture leaders to the launch and development of markets as diverse as Fintech, IoT, GreenTech, CannaTech, & DigitalTech.
- LinkedIn— https://www.linkedin.com/in/karimnurani/
- Website— https://www.linqto.com/
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