Can you invest in startups using a demat account? MintGenie answers
India's startup ecosystem is flourishing, positioning itself as one of the most vibrant and attractive markets for investors. This surge highlights the country's entrepreneurial spirit, innovative capabilities, and steadfast resolve. Indian startups encompass a wide range of sectors such as technology, healthcare, and green energy, showcasing the nation's adaptability to global trends and its ability to establish a distinctive place in the world of entrepreneurship.
India's booming startup scene offers numerous opportunities for investors but requires a strategic and thoughtful approach. To successfully navigate this dynamic landscape, it's essential to understand the market, key players, and emerging trends.
While all listed shares can be very easily bought by anyone who has a demat account, it is also possible, though not as easy, for investors to buy shares of firms that have not been listed yet. One can only invest in startups through their demat account if the firm has launched an initial public offering (IPO) like Paytm, Zomato, or Nykaa.
Listed shares are closely monitored by market regulator SEBI, but the same does not apply to unlisted shares. While these shares can provide great growth opportunities and have massive potential, they also have very high risks.
A number of times these shares are not listed because they cannot fulfill one or more criteria for listing like fees or market capitalisation.
Apart from subscribing to IPOs, there is no way through a demat account for investors to invest in startups. However, there are some other ways through which you can invest in these.
Direct Investment: Invest directly in startups without involving a third party such as a venture capital, debt, or private equity firm.
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