If you were lucky enough to have invested in Bitcoin, Apple or Facebook at the time of their initial public offering, then your investment would have been undoubtedly lucrative. However, is there a lesson to be learnt from this much closer to home?
Strikingly, according to Investopedia, if you had invested $100 (£77) in Bitcoin on 1 January 2011 and had sold your investment in May 2017, your initial $100 would be worth almost $500,000. Likewise, according to Jolt – a hosting services company who has put together the infographic shown below, if you had invested $1000 in Amazon on its initial public offering (a mere $18) you “would be on your way to becoming a millionaire” as it is valued at around $640,000.
Similarly, your investment in Apple would be worth almost 300x more than in 1980. If you managed to handle the stress through the high amount of cryptocurrency volatility, the Dot-com bubble and the most recent financial disaster of the late noughties, then your early investment in publicly traded technology companies would be one of the best investment decisions anyone is likely to make.
Risks to consider
However, investing in tech and digital companies may not be as safe an investment as outlined above. According to the infographic, investing in more recent technological trends such as the peer-to-peer messaging application Snapchat wouldn’t be nearly as profitable as its competitor Facebook. Ever since its speculative valuation, Snap inc has been on a downward trajectory valuing today at about 75% of a $1000 investment in March 2017. Twitter has seen a similar, yet more depressive downward trend since its IPO in late 2013.
It is hard to imagine that Amazon was once a startup which, as the famous story goes, originated in Jeffrey Bezos garage in 1994. Today, Amazon generates $61 billion annual revenue. From Garage startup to global technological powerhouse, are we able to draw comparisons to the bristling startup community here in the south west?
Bristol and Bath, with its plentiful talent pool and abundant resources designed to help startups grow might just be one to look out for if you’re looking for a prosperous investment. Who’s to say the next generation of technological powerhouses aren’t being developed right in the South West?
You can see the infographic here: