Wealth should not anymore be defined as mere accumulation of money and material assets but of finding and making profitable business opportunities New technology has given people new and alternative ways to invest and get capital to fund their business In the final analysis, investing on a business boils down to three things: planning, knowledge, and passion In today’s era of technology and untapped opportunities, wealth has transformed from just mere accumulation of material riches to creation of opportunities. Creating opportunities involves knowing when the right time is to invest your hard-earned money. “A good idea in a bad timing is a bad idea. Timing is key,” says Sam Phoen, an experienced investor and author of the highly acclaimed book, “High Net-Worth Investing”, as he emphasised the importance of timing. Ignoring to monitor expenses in an investment, especially for start-ups, is tantamount to leading your business to stagnancy or worse - loss and bankruptcy. Knowledge of your business’ expenses is an important factor in managing funds. Senior executive, Matthew Welch, who specialises in Asian financial markets, further states that a thorough understanding of expenses in one’s managed funds will make an investor better off. Prudent investors know when and where to allocate their assets rather than just putting their money on index or active funds. Investing on resources and alternative ways to fund business ideas Markus Gnirck, co-founder and managing director of tryb Capital, believes that one of the best business ideas that have the chance to succeed in this modern era is investing in basic needs and resources -- such as water, food, and water recycling among many others. However, investing in something you are not familiar with can be costly and may even lead to failure. Solodkiy, managing partner, Life.SREDA, suggests that there is a need for investors to educate themselves, “you have to educate yourself, in each country, in each market.” Knowledge of the customer's’ culture is a prerequisite if the investor wants to take the lead among competitors. Nicola Castelnuovo, co-founder and chief customer officer of Crowdo, further warns would-be investors to “not put all their wealth in something they do not understand”. How about capital? Where can investors or would-be investors get capital to fund their business ideas? The era of technological advancement has given business-minded people many ways to get money so they can start up their business other than the traditional borrowing from banks (or worse, even from loan sharks). Crowdfunding is one alternative way to raise capital to fund business ideas. Crowdfunding is a financing method wherein an investor requests a loan from a large number of people each for a small amount, but when summed up, the accumulated contributions will be enough to finance a business project. The transaction is normally done in the internet. It is a challenge for crowdfunding organisations to initiate programs that will promote inclusiveness. However, experts in the lending industry warn that there are tangible risks in borrowing and lending money between strangers on the Internet. For people who want to invest by lending their money to start-up businesses, peer-to-peer (P2P) and crowdfunding may be seen as lucrative since it involves little amount of money to invest in. Because of this scenario, influx of funds are attracting players but are faced with limited demand, which has implications. So Kelvin Teo, co-founder and director of Funding Societies, advises the lenders to “grow slowly rather than recklessly. New technology - cryptocurrencies and robo-advisors An alternative way to invest on with regards to new technology is bitcoin, the type of cryptocurrency or digital currency in which encryption techniques are used to regulate and generate the units of currency to verify the transaction of funds. Since it is encrypted digitally, many people are wary about investing in cryptocurrency due to the belief that it can be used as tools by cybercriminals to make money. Yet, Derek Wong, director and co-founder of Aquifer Institute, points out that “cash is the best way to commit crime with - NOT cryptocurrency.” However, some experts such as Seamus Donoghue, director of Lykke Corp, believe that because bitcoin is in the crypto-space, (it is still) difficult to convert in real markets. Investors are advised to protect their cryptocurrency investment by investing in hardware wallets. Another agent of new technology when it comes to investing is the robo-advisor. Many new investors ask whether robo-advisors can indeed help them make the correct investments since they are automated by machines and not operated by humans. To dispel this apprehension, Ned Phillips, founder and CEO of Bambu Life, advises investors: “Don't be afraid of artificial intelligence, that's just machine data. Be afraid of real intelligence.” Charlie O'Flaherty, partner and head of digital strategy and distribution at Crossbridge Capital, seconds him by saying, “digital offering brings more value to the under-banked customers in wealth management.” Conclusion Investing is both a science and an art, and yet is also a passion. Because it is an art, investors need to have financial goals and be meticulous in the financial planning. Since it is also a science, people who want to invest on their ideas should see and be familiar with the political environment surrounding their business idea. Finally, because it is a passion, they should invest their money on a product or service they love. “Find out what you are interested in. Is it art or wine? You should know yourself,” says Anna Haotanto, CEO and founder of The New Savvy.
