Prior to actually investing, investors should come up with an investment strategy as well as take current conditions and risks into consideration.

The portal through which you are investing may have already conducted due diligence, which you can use to quickly make an initial assessment. You should also conduct y our own due diligence through reviewing documents, speaking to management and researching the company.

Investments may be conducted by an individual or through a family trust, Individual Retirement Account (IRA), LLC or LP. To decide which entity you wish to use, consider factors like tax structure, existing investment portfolio, and personal circumstances.

View the infographic on 4 Reasons To Invest In Startups below, or download it here.