If you’re looking to invest in a company but are not sure where to start, there are several reasons why tech companies are most suitable for investing.
Whether you want to invest in a startup to give a new company a better chance at growing and innovating. Or, invest in one of the large tech companies to potentially see a large return on your investment. Investing in companies that produce technology and being a part of the innovations that improve our daily lives is an exciting prospect.
Investing in Tech Startups
All the large tech companies had to start somewhere and required some capital to get started. Chances are they had to raise capital in some form or another to get off the ground.Investing in a tech startup presents a unique and exciting opportunity to be part of a tech company as it starts out and grows. As an investor, you give the startup some capital, typically in return for some equity in the business.
This means, as the company grows and starts to turn over a profit, you will receive returns in proportion to the amount of equity you have in the company. The flip side is that if the company fails you stand to lose your investment. But that’s part of the financial risk you undertake with any investment.
It’s also worth noting that a lot of startups are eligible for Enterprise Investment Scheme (EIS) tax relief. This is a government-backed scheme that allows you to claim back up to 30% of the value of your investment in income tax relief.
You can find out more about both debt and equity investment opportunities through the Enterprise Investment Scheme at IW Capital.
Top 5 Tech Companies to Invest in
If you’re looking to make a smart financial investment, here are five of the top tech companies and how their investments are performing at the time of publishing:
Amazon.com
Rolling high on record-setting profits through last year to this year, Amazon is returning 17% on investments year-to-date (YTD). Amazon is arguably the most established global brand, there is still room to grow, and it represents a low-risk investment opportunity.
Apple
Once the world's most valuable brand, Apple is now second to Amazon. With a YTD return of 29% on investments, and the launch of Apple TV+ coming this year, it’s anticipated to be a good year for Apple stock.
Facebook
Despite some issues with privacy breaches, Facebook remains one of the best tech companies to invest in as the userbase stays loyal to the products and services they offer. Investors have seen a YTD return of 38%.
A huge purge of fake accounts and a facelift to the user interface has helped Twitter see impressive growth in 2019. Investors are seeing a YTD return of 46%.
Google is one of the top five most valuable companies in the world. With their hold over the internet, it’s hard to doubt the future of the company. Their YTD return is 12% and the long-term future looks promising.
