Three “Billionaire Guidelines” for 10,000% Returns

Fred Wilson is among the most profitable startup traders on the planet.

He was an early investor in startups like Twitter, Twilio, and Etsy — all of which are actually multi-billion-dollar publicly traded corporations.

That’s why he repeatedly tops Forbes’ “Midas Listing” of early-stage tech traders, and is rumored to have a $1 billion fortune.

So immediately, I’m going to disclose three of Fred’s most vital guidelines for startup investing success.

Rule #1: “Spend money on Bits, Not Atoms”

To start with, whenever you put money into startups, you must put money into “bits” not “atoms.”

In different phrases, quite than investing in companies that produce bodily merchandise, you must give attention to software-based companies.

Why? As a result of corporations that construct bodily merchandise have greater working prices!

Positive, some {hardware} corporations will turn into profitable. However statistically talking, greater prices correlate to the next threat of going out of enterprise.

By investing in software program corporations, you’re extra more likely to again corporations that survive and thrive — and also you’re extra more likely to earn improbable returns.

Rule #2: “Love Your Losers”

With this rule, Fred is acknowledging an undeniable fact:

If you wish to earn massive returns within the startup world, it’s a must to take some threat.

Due to this fact, it’s inevitable that you just’ll again some “losers” alongside the best way.

When you construct your portfolio correctly and diversify your startup investments, your winners ought to greater than make up on your losers.

So embrace them, love them. They’re a part of the system that can lead you to success.

Rule #3: “Hold it Easy”

Fred believes that one of the best startups develop a drop-dead easy resolution to an enormous drawback.

So far as Fred is worried, the extra advanced a product is, the extra probably will probably be to fail.

Based mostly on Fred’s observe report, I’d take this lesson as gospel…

Again and again, he’s invested in corporations that others thought-about “too easy,” however have gone on to turn into tremendously profitable.

As an example, when Fred first invested in Twitter, folks thought he was loopy. You see, in contrast to different on-line companies that allowed folks to publish book-length posts, Twitter allowed simply 140 characters.

This created a really restricted consumer expertise — nevertheless it turned out to be an ideal resolution for publishing fast however critically vital info.

Ultimately, it’s estimated that Fred made greater than 100x his cash on Twitter. That’s a 10,000% return.

That’s like turning each $10,000 you invested into $1 million.

Your Path to Startup Hundreds of thousands?

By following guidelines like these, Fred is now price an estimated $1 billion.

You may comply with these guidelines, too — and put your self on a path to incomes market-beating returns within the startup house.

When you’d prefer to be taught extra about what to search for in startup investments, try our “10 Commandments” report right here »

That is the place we define ten issues we search for earlier than making any startup funding.

Primarily, it helps us establish solely essentially the most worthwhile early-stage funding alternatives.

And we imagine it might assist you to rapidly start constructing your portfolio of startup investments in 2022!

Completely satisfied investing — and completely satisfied new 12 months!

Finest Regards,
Wayne Mulligan
Wayne Mulligan