For more than a decade, Bill Malloy, a founding general partner of Sway Ventures, has been working in the technology and venture capital industries. In the venture capital sector, Bill Malloy focuses on investing in early- to mid-stage teams and tech companies.
Investing in startup and early-stage companies can have a high level of risk, but there are benefits to this type of investing for investors or "Limited Partners". Startup investing is an easy way for new investors to diversify their portfolios. The hard part of investing is finding the right teams, companies, and co investors to partner with.
Despite the increased risk, investing in startup companies are open to many different types of investors, whereas established businesses often have more regulations. This makes startups easier to invest in and more accessible. Some investors choose to partner with venture capital firm, some investors choose to invest directly and some choose to mix a combination of the two.
In addition, startup investing is accompanied by the possibility of higher returns. Not every startup’s value increases as significantly as others during its lifetime, but since investors are entering a business on the ground floor, they have a better chance of seeing more returns than investors who invest in established businesses. Snapchat is in the new today for a $3 billion IPO. For a Limited Partner the appeal of venture capital investing is to find a company and team that can accomplish something like this.
Further, investing in startup companies positively affects an area’s economy. Startups are responsible for nearly 20 percent of job creation in certain areas, and startups help drive innovation and competition among businesses. We look for founders think technology can liberate us the inefficiency that plagues every business and every consumer in our everyday lives. Even during economic downturns, startup companies stimulate economic growth. By investing in startups, investors are able to play a role in improving their local economy.
Bill Malloy co-founded Sway Ventures along with Brian Nugent in 2013, and has since served as general partner at the venture capital firm, which is dedicated to investing in early stage and early growth technology firms that want to change the world through software.