Are you ready to make an investment in the future? Learn everything you need to know about tech investing here.
The future is here, and that future is called technology. And tech investing, for now, or for down the road, is something that a lot of people are interested in.
It makes sense. Things like Blockchain is changing how we think about money. SmartPhones have apps that make our lives easier. Jobs are being replaced by well-designed software.
Suffice it to say that tech is here, and it’s here to stay. Investing in technology, then, it stands to reason is probably a good idea. But there’s plenty you need to take into consideration to do it well, so you don’t lose a bunch of money on something that just seemed like a good idea.
In this article, we’ll dive into a handful of the best tips for technology investing. Every situation ultimately comes down to choice, but use these tips to inform yours!
What Are You Investing In?
The key when investing in technology is, above all, to do your research. If you have the option to, ask a lot of questions, and ask them to the people that are building the technology.
Asking questions and diving deeper into what the technology you’re investing in is is the most important step. The truth is, every startup between Tacoma and Timbuktu prepares a speech about how their technology is changing the world.
It’s on you to figure out how, and if that’s valuable for you and your investment, before putting any money down. And here’s where you can learn more about how you can get money to invest.
What’s the User Experience Like?
We’ve all seen apps and other technology fads come and go. Remember three Christmas seasons ago when everyone you knew got a hoverboard? Then, all of a sudden, they started exploding in people’s living rooms.
Now, how many people do you see buying hoverboards?
There are a lot of things to consider, but one surefire way to get a read on if your investment is going to be worthwhile is if the user experience is positive.
Simply put, people fall in love with products that are easy and enjoyable to use– just ask Reed Hastings, the guy worth 2.3 billion dollars who is behind Netflix.
Features, innovation, and all the stuff that initially gets people interested to disappear if people don’t enjoy the experience of using a new product. Whether it’s an app, wearable technology, or even a type of currency, it’s best for you to get a read on this right away.
Does It Meet A Need?
Good products solve problems or eliminate the pain points of a similar product that it was modeled after. You should always consider how necessary the product is before you invest.
The truth is, this question is a bit overwhelming. It also, on occasion, ends up not being good advice. After all, who would’ve thought silly games like Angry Birds would take off the way they did?
Not many people saw that being a need. It probably wasn’t, but people loved it anyway.
For you, as you prospect a technology investment, do your best to find out how exactly the new tech gear is necessary. And if it’s a product that makes something we all do easier– work, eat, sleep, etc.– you might just have found something to dive into.
Accept The Risk
Sadly, none of us can predict the future. Some technology is going to emerge that you feel really good about, then flop. Some apps you never thought had a chance are going to change the way we do things across the world.
It’s the nature of the game. If you’re serious about getting into tech investing, you should be well aware of this and also mentally prepare yourself for the risks ahead.
Ultimately, there is a risk in anything you do. There is a risk in not doing anything. But with tech investing, you should accept the fact that, sometimes, hard-earned dollars will disappear or that you can’t control everything about the process.
Pick Something You Believe In
This section is one some investors will skip over, but it is something to consider. Obviously, with tech investing you are hoping to make a buck. But you should do your best to invest money in projects you think you can help with or things you believe in.
Why? Because, at the end of the day, passion for a product, service, or app is something that will keep you emotionally invested in the company. You may even be able to help (other than financially) if you stay involved with the entire process.
Basically, if you watch Shark Tank, try to be less like Mr. Wonderful (the Shark that repeatedly mentions he cares about money). He may be rich, but so are the other sharks, and they seem to have a lot more fun doing what they do than he does.
And if fun doesn’t matter to you, take into account that Mr. Wonderful’s name doesn’t make the list very often for products that have made the most money on Shark Tank.
Tech Investing: Wrap-Up
When it comes to tech investing, the truth is that you only can control so much. There will be times where you win and lose hard-earned money. But the truth is, in our quickly evolving world, technology is a pretty great place to invest.
Check out more news regarding technology, cryptocurrency and more on our website so that you stay up to date on current trends. Good luck!