What if you want to invest $5,000 in a friend's business?

If you have ever considered investing some of your hard-earned cash in a start-up venture, you might want to attend a free workshop next week.

The workshop is aimed at people who might want to direct between $5,000 and $50,000 of their savings into a small business such as a franchised sandwich shop, car wash or an e-commerce start-up. It’s also appropriate for people with self-directed IRAs who want to explore investment options other than real estate.

The March 9 event will focus on how to evaluate investing opportunities. That can be difficult because small businesses are less regulated than publicly-traded companies, which have to release public financial statements.

. . .

Most start-ups are funded by regular people — such as friends or coworkers — and not by venture capital firms or high-net-worth “angel investors,” said Bill Attinger, CEO of ActSeed. One study found that three-quarters of all business investments made by individuals were $20,000 or less. The 2005 study was released by the Eugenio Pino and Family Global Entrepreneurship Center at Florida International University.

Read: “What if you want to invest $5,000 in a friend’s business?,“ an article by The San Diego Union-Tribute.

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