Since the very beginning, MetroStart (formerly Metro Startup Launcher) has worked to make it easier for startup companies in our area to raise capital and get started. With a lot of trial and error, we believe we have figured out a much easier way for startups to raise capital. The same method allows investors to invest smaller amounts and spread their risk, which statistically produces huge returns compared to typical stock market returns.

As we have worked to build the audience for MetroStart over the last couple years, we’ve heard a lot of common themes:

It’s REALLY difficult to raise the first $25,000 to $50,000 for startups that need a small amount of cash to get started.

NO ONE wants to be the first investor to help me get my concept off the ground.

After raising my initial chunk of capital (sometimes even hundreds of thousands of dollars), we just can’t seem to find any additional investors.

All the serious angel investors say they are tapped out.

And, from the investor side, we’ve heard similar things:

I don’t want to be the first investor on someone’s idea.

Come back after you have proven your concept.

Come back after you have traction in the marketplace.

Come back after you’re profitable.

I invested $25,000 in a startup one time, and I lost all my money. I’m not doing that again.

Not only does this lack of very early stage capital lead to less startups, this means that the MAJORITY of ideas for companies never get started at all. I’m not saying that ALL ideas deserve to be funded or should even get started. However, there are many great ideas and great companies that never get started and/or eventually fold because they can’t raise the capital they need to maintain momentum.

From the investor side, it makes sense for us to launch a lot more startups and for investors to invest in a lot more startups. If you download MetroStart’s ebook, Little Angels, Big Profits, and look at the information contained in multiple studies of angel investors, there’s an important statistic. Angel investors MUST invest in multiple startups in order to be profitable. Here’s the stats:

If you invest in one startup company, you’re likely to lose all your money.

Invest in 6 or more startups, and you’ll probably reach break-even.

Invest in 12 or more startups in a 5 year period, and you’ll start to approach a 27% annual return on your i