The 5 Non-Traditional Investment Paths Millennial Entrepreneurs Are Selecting

As a millennial business owner, you must have realized that your investment portfolio is not at all similar to that of your parents. Gone are the times when the concept of investing merely required one to acquire blue-chip stocks and call it a day. Contemporary youthful entrepreneurs are seeking different avenues that are more in line with their values, lifestyles, and financial objectives.

So what's driving this shift? Now, we are going to explore five unconventional investment avenues that are catching the eye of millennial entrepreneurs and why they might be a good addition to your portfolio.

Digital Assets and Cryptocurrency

Whether you love it or hate it, cryptocurrency is impossible to ignore. Digital assets are especially attractive to millennial entrepreneurs, as they are comfortable with the technology that supports them. Being raised in the era of the internet revolution, millennial entrepreneurs see blockchain and decentralized finance not as alien concepts, but as part of the future.

In addition to Bitcoin and Ethereum, NFTs, DeFi protocols, and tokenized assets are being investigated by many. The appeal includes the ability to fully manage investments, 24/7 trading, and the potential for high returns. The risk is high, yes, but so is the potential opportunity for those willing to do their homework.

The trick here is to consider crypto as a part of a diversified portfolio, rather than your financial future. Begin small, keep learning, and never put in more than you can afford to lose.

Precious Metals

Your grandparents may have buried gold bars in a safe, but millennial entrepreneurs are approaching precious metals investing with a more advanced approach. This time around, the interest is not focused on doomsday prepping, but rather on clever portfolio diversification and safeguarding against inflation.

A key difference is the increased accessibility of this asset class. The acquisition, storage, and sale of precious metals have been made easy by modern platforms. It is now possible to invest in a fraction of gold, have it stored in secure vaults, or even hold digital gold certificates—all from your laptop.

Precious metals provide a tangible balance to entrepreneurs whose net worth is heavily focused on startup equity. These tangible assets are likely to retain their value when the stocks of technology companies go down or when your organization is performing poorly. It is not about a get-rich-quick scheme; rather, it provides a stable platform that can sustain one through various economic downturns.

Peer-to-Peer Lending and Crowdfunding

Millennial entrepreneurs enjoy the thought of eliminating the middle man, and peer-to-peer (P2P) lending sites provide just that. You can make much higher returns by lending money directly to individuals or small businesses instead of earning low interest in a savings account.

Platforms like LendingClub, Prosper, and Funding Circle have made the lending process democratic, letting you begin with small sums and invest in a wide range of loans. The best thing about this is that not only are you building wealth, but you are also helping other business people and individuals who may not have access to standard bank loans.

Equity crowdfunding follows a similar principle. It allows you to invest in start-ups with as little as $100 on sites such as Republic and StartEngine. To entrepreneurs who have already gone through the "sting" of fundraising, it feels good to give a boost to the next generation of startups while also potentially earning decent returns.

Sustainable and Impact Investing

This is where millennial values can be clearly seen. This generation does not just want to make money; it wants to see investments align with its principles. Impact investing gives you the opportunity to earn returns and at the same time invest in companies that will solve societal or environmental issues.

Whether it's renewable energy, clean water programs, affordable healthcare, or sustainable agriculture, there are now numerous funds and platforms devoted to impact investing. The ESG (Environmental, Social, and Governance) standards are not a niche concept anymore, and millennial entrepreneurs are on the forefront.

The idea that you must sacrifice returns in order to invest in your values is proving to be a myth. "Virtuous" funds have performed as well as, or even better than, traditional investments, proving that you can do good and do well simultaneously.

New Models of Real Estate

Real estate was always viewed as an instrument of wealth-building, and millennial entrepreneurs are looking at it differently. They are looking at models that do not need as much capital as the traditional buy-a-rental-property route and that better fit their lifestyle.

Co-living investment is one of the new opportunities. Investors are backing co-living spaces targeted at young professionals and digital nomads. These apartments provide personal bedrooms and shared common spaces, forming community-oriented lifestyles that are attractive to the current flexible workforce.

What is the appeal to this model? First, it can be more profitable in terms of returns per square foot in comparison to traditional rentals. Second, it deals with an actual market necessity, as the rise of remote employment and the cost of urban living redefine residential preferences. Third, it is more passive than being a conventional landlord, as professional management companies normally operate the properties.

Real estate crowdfunding sites have also enabled people to invest in commercial real estate, apartment buildings, and development projects with as little as a few thousand dollars. You get the advantage of exposure to real estate growth and rental earnings without the hassles of property management.

Moving Forward

The most successful millennial businesspeople are not putting all their eggs in one basket. They are diversifying their portfolios to include both traditional and alternative investments and are always open-minded and eager to learn.

You should research anything you want to dive into before engaging in any of these paths. Know the risks, start small, and consider seeking the services of a financial advisor who understands both traditional and alternative assets. It is not about pursuing all the trends, but rather about creating a portfolio that will help you reach your individual objectives and suit your financial situation.