2 min to read
My First Investment
I invested for the first time 2 years ago. It was my starup which I co-founder with 2 other people. I was both an investor and a manager of the company.
This investment was a success in raising equity-free funding and in teaching me how to be an employer. It was a success from a learning perspective - to become a better manager and to learn how to create a business system which survives. It was a failure from my personal finances point of view. I invested €14 000 of my own money and I could not recover €13 200 from it. Yet, in conclusion, it was a success.
I am happy with the progress in raising money that I and my team achieved in these 2 years.
We received a grant of €50 000 from ESA BIC Portugal (the European Space Agency business incubator) in the first year.
We raised €150 000 from Fit4Start in Luxembourg in the second year.
In total, we raised €200 000. This was good pre-seed money and we exchanged no equity for it.
A founder’s conflict developed in the meantime (read more about it here if you are interested). Because of it the best desicion for us to take to protect the money of our investors was never to request a big part of this money - namely €152 500.
This is what we did with the €37 500 we did receive.
We created 4 high-qualified personnel jobs with this money and I am proud of it.
Financially speaking, we paid €24 455 in salaries, €1 965,6 in social security, €2 745 in IRS and €3 600 in company taxes.
Every investment is a calculated risk. Some investments are also risky - as building a startup is. I decided to build a startup - and because one of the two most common startups problems developed I could not recover the money I had invested in the company. My loss was €13 200 and that’s okay. Some investments multiply the money invested and some lose it while the investor gets smarter. I got smarter.