I attended a business seminar where a facilitator a renowned professor, and Entrepreneur shared a story on how he missed out on investing in a small fintech start two years ago which as at today is worth $500 million. He said the team had approached him to make an a investment in the start but because he did not understand how the were going to make money since he didn't invest the $100k he wanted to write them. Today, he would have been $7.5million richer had he invested.
They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?
For me you should follow your instincts. It is hard to invest if you are 100% not sure and if you cannot afford to loose what you are investing. I know for sure that more people experienced that kind of missing out an investment, of course the regret could always be in the end. But what if he invested on an early stage then later on it went bankrupt, for sure he will also regret that. So better yet follow your instincts and make sure that the amount you will invest is what you can afford to loose. Also research first before investing to be able to know if it is a reliable or a scam project. At the end of the day your decision to invest will be depend on yourself.