A 2013 UBS report, Investment Strategy Guide, recommends that 7 to 11% of any given investment portfolio be allocated to new alternative investments, which includes buying equity in early stage companies (note that only accredited investors may participate in private offerings).Startup investing involves high risk. However, investing early in startups has the potential of yielding high returns as seen below.
- $1,000 in Facebook in 2005 = $624,500 today
- $1,000 in Airbnb in 2009 = $589,667 today
- $1,000 in Dropbox in 2008 = $391,500 today