In today’s competitive environment, entrepreneurs are constantly looking for innovative ways to finance their projects. Alternative investments, after decades with higher average returns than traditional investments, are gaining importance as an option that not only diversifies risk, but also provides the opportunity to manage our risk more effectively and achieve higher returns.
This type of investment differs from traditional assets, such as stocks and bonds, because covers a wide variety of opportunitiesincluding but not limited to real estate, venture capital or art. Its lower correlation with conventional markets allows entrepreneurs to diversify their capital in search of greater stability. Additionally, alternative investments have consistently been shown to provide, on average, higher returns than major stock market indices. This means that an entrepreneur can not only use this financing route, but can also turn their business into a valuable asset to others in the long term.
A wide range of options
If we talk about the main types of alternative investments, real estate is one of the most popular formulas, not only because it allows you to generate passive income through rental, but because it also offers potential for long-term capital appreciation and benefits from tax advantages. benefits. like depreciation. In addition, new technologies such as tokenization and decentralized finance have opened new doorsallowing entrepreneurs to finance themselves, invest in less capital properties, take on debt through the collateralization of digital assets and, therefore, diversify and optimize their investment portfolio.
Venture capital and private equity, on the other hand, focus on financing emerging companies. (startups/scale ups/growth) which do not have access to traditional financing or which supplement it. Although this type of investment can be risky, it also offers much higher return potential. For entrepreneurs, accessing venture capital or private equity funds can mean the boost they need to commercialize their ideas and also represents an investment alternative in the sectors they deeply dominate.
In addition, Investing in art or natural resources may seem unconventional, but it also offers interesting opportunities. Investments in art can not only generate capital appreciation, but can also serve as a store of value and, in some cases, appreciate over the investment period. As for natural resources, such as energy and agriculture, they can serve as a hedge against inflation and market volatility. And there are many other alternative investment possibilities, such as public debt, infrastructure, hedge fundscryptocurrencies, etc.
The revolution of tokenization and decentralized finance
We mentioned earlier that technology is transforming the economy and offering new ways to improve our investments. In this sense, The tokenization of assets, particularly in real estate, is changing the way entrepreneurs in this sector access new capital. This innovation uses technology blockchain and the smart contracts allowing entrepreneurs to finance themselves and investors to buy and exchange fractions of businesses or properties, thereby reducing barriers to entry and improving liquidity. Additionally, decentralized finance, commonly known as DeFi, eliminates the need for traditional intermediaries such as banks and other financial institutions and allows entrepreneurs to access services such as loans, savings, asset trading and insurance directly and without geographical restrictions.
If we had to summarize the main advantages of the two formulas, I would highlight:
Better access to financing: Entrepreneurs can access loans and financing through DeFi platforms without having to go through a traditional approval process, which is usually lengthy and complicated. This allows you to obtain capital faster and more flexibly.
Greater efficiency: Technology blockchain ensures that all transactions are transparent and immutable. This builds investor confidence and reduces administrative complexities associated with traditional investments. Additionally, smart contracts automate processes such as passive revenue distribution, streamlining operations, and reducing costs.
Greater liquidity: Unlike traditional real estate investments, which typically require long investment periods, tokenization allows investors to buy and sell tokens on secondary markets. This provides greater flexibility to adjust investment positions based on market conditions.
Greater opportunities for innovation and growth: Tokenization and DeFi are constantly evolving, providing entrepreneurs with the opportunity to innovate with new solutions and services. Participating in this ecosystem can open doors to alliances and new business models.
Diversification of investments and conservation of assets: Diversifying investments across different digital assets can help mitigate risks and maximize potential returns. Additionally, unlike traditional systems, where funds are in the hands of institutions, here we maintain full control of our assets.
Transparency and personalization: All transactions are recorded in the blockchainwhich provides a high level of transparency and auditability. Additionally, DeFi platforms allow entrepreneurs to create personalized financial products, adjusting the terms and conditions according to their specific needs, which is more complicated in traditional systems.
Global access and financial inclusion: Anyone with an internet connection can access tokenization and DeFi services, democratizing investing, reducing the capital needed for portfolio diversification, and providing opportunities for users in underbanked regions.
Strategies to follow
Of course, pTo maximize the opportunities offered by alternative investments, it is essential that entrepreneurs comprehensively evaluate each option. understand the risks associated with each of them and analyze how they align with your medium and long term financial objectives, in order to make informed decisions, always keeping in mind that the ideal is to diversify strategically and better by starting with a maximum of 10% of our portfolio.
Additionally, as the world of alternative investments is constantly evolving, It is crucial to keep up to date with market trends, technological innovations and emerging opportunities.
And as we have seen, Alternative investments are an essential part of today’s financial landscape and an option that must be analyzed for every entrepreneur and investor, especially now, where technology blockchain and its two main applications, tokenization and DeFi, democratize its access, opening the way for any entrepreneur to access new financing avenues, and for any investor to diversify their portfolio and optimize the use of their savings with options and returns previously exclusive to wealthy and institutional investors.
