In the financial world of investment, there’s alpha and beta. Alpha is a measure of return on investment with a comparison to the market. Beta is a measure of volatility and how the investment moves relative to the rest of the market.
In short, alpha is how well your investment performed on its own while beta is how well your investment performed as a function of the entire market moving in one direction or the other.
At TEN Capital we work with early-stage startups and use an investor redemption right to provide early exits from startup investments. This tool provides pure alpha as there is no liquid market for early-stage companies. Later stage companies can be bought out or go public but that takes many years and only a small fraction of those companies make it there.
As an early-stage investor, you can still participate in the startup funding world by using the TEN Capitals’ early exit structure.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies