When developing an equity crowdfunding campaign, whether under Reg CF or Reg A, most startups focus on retail investors. However, if you’re only focusing on retail investors, you’re missing out on the huge financial potential that angel investors, and specifically accredited angel investors, have to offer. In this article, we’ll take a look at why accredited angel investors are so important and how to approach them for your campaign.

What is an accredited angel investor?

Accredited are investors who have reached a certain level of wealth and therefore have a special legal status when it comes to investing. In the USA, to meet the requirements, accredited investors might have a net worth of above 1M$ or a yearly salary above $200k (the full SEC definition of an accredited investor can be found here). Because accredited angel investors have much more wealth than a standard retail investor, they can invest much larger sums and have fewer limitations on the types of investments they can make. These angel investors are individual investors who invest in startups in a professional or semi-professional manner, and see it as an important part of their personal capital allocation strategy.

Why are accredited angel investors important?

While startups running a Reg CF or Reg A (“mini IPO) are allowed to raise money from virtually any investor, the general crowd of investors or “retail investors” are limited to investing smaller amounts, and tend to do so anyway since they are not necessarily financially affluent. So even if retail investors will typically make up the bulk of your crowdfunding campaign’s investors, it’s very important to approach angels and accredited investors as well. Because accredited angel investors have access to large sums of money, one accredited investor can spend as much as 100 or more retail investors combined. Additionally, accredited angel investors typically have a lot of professional and social influence. They often have valuable experience, but even more importantly they might have ties with additional investors, as well other connections that could help your business as it grows. Some of them manage syndicates that group investments from several accredited angel investors, or are part of such syndicates and can recommend your startup to the syndicate leader. Such syndicates can potentially invest large amounts of capital, sometimes akin to amounts invested in startups by venture capital funds.
However, most angel investors operate alone and make their investment decisions on their own, which means they are often quicker to decide when compared to VCs or family offices. This is especially important when you are attempting to raise capital via equity crowdfunding, where the campaign progress is often displayed publicly and the every check made by an angel investor can not only “move the needle” significantly as in of itself, but also serves to show momentum in the equity crowdfunding campaign, which in turn encourages other investors, including retail investors, to join in. 

How can I find angel investors for my startup?

Finding accredited angel investors requires a bit more time and effort than finding retail investors. When you’re courting retail investors, you’re typically using B2C marketing strategies, such as Facebook ads. But to find accredited angel investors, you would need to use marketing strategies that are more similar to those used to target other businesses or top decision makers. This typically means reaching out to these accredited angel investors directly and connecting with them one-on-one. While this does require a much bigger effort than finding retail investors, the payoff could be much bigger as well. 

One way to reach accredited angel investors is by connecting with groups of investors, specifically groups with a focus on angel investing. The advantage of this strategy is that you can reach many investors at one time. The downside of this is that many angel investing groups have intense due diligence processes, akin to those used by VCs or other institutional investors. These processes can be very time-consuming and usually don’t work well with the faster timeline of an equity crowdfunding campaign. 

A much more effective option is to reach out to accredited angel investors directly and tell them about your offering. Many angel investors are looking for new companies to invest in, so there is a good chance they will be happy to hear from you. So the challenge is finding these angel investors, and then approaching them in a way that is efficient, respectful, and conducive to your goals. When done effectively, this conversation is mutually beneficial – you’re building an important connection with a prospective investor, and the investor has found a potential investment opportunity without having to do any of their own searching. 

The easiest way to find these people is to search for lists of angel investors related to your field. Sites like CrunchBase and AngelList offer lists of investors. LinkedIn is also an amazing resource that is free to use. When searching on LinkedIn for accredited angel investors, you’ll need to deduce their accredited status from their latest positions and the other information in their profile, as this isn’t something they will have listed outright. It’s also important to note that just because an individual is wealthy does not necessarily mean that they will be interested in investing with you. Many wealthy people won’t want to take the risk of investing in a startup, so it’s important to find people who have specifically expressed interest in startup investing. 

Another challenge you will come across is that some people that describe themselves as angel investors are only partially interested in actually investing, and instead are using the investor status as a leverage to connect with startups and offer them various services. So you will have to do a bit of research on each potential investor before you decide on reaching out to them.

How should I approach angel investors for my startup?

Finding qualified accredited angel investors is one of the most effective ways to get your equity crowdfunding campaign off the ground. You’ll need to be tactful when approaching any investor, but this kind of care and consideration is particularly important when reaching out to those who are accredited. A thoughtful and clear message is often the best way to get them on board. 

When reaching out to accredited angel investors, you’ll want to make sure that you’re doing so in a way that is concise and thoughtful, rather than something that feels like spam. Email can be a good option as long as you are using a business email. However, using a newsletter or general email template will not foster good results, and might even damage your reputation if your outreach feels too generic or salesy. In order for your email to be impactful, it needs to feel personal. These investors typically receive a huge volume of emails each day, and they’re likely to skip over emails that feel like a mass newsletter. Emails should be personalized, and not only their content but their whole look and “feel” should be personal.
There are email services that help you do that at scale, one of our favorite ones is Woodpecker.

Connecting with accredited angel investors on LinkedIn: How to do it yourself and the challenges you’ll face

Reaching out to potential angel investors on LinkedIn is free, and there are multiple ways to do this. You can send them an InMail, or you can send them a connection request with an invitation note. It’s important to note that doing this manually can be very tedious, and it requires a lot of time and research to do successfully. However, it can have a  huge payoff for your business when you do succeed. There are ways to automate or partially automate this process to reduce your workload and save time. Since LinkedIn prohibits the use of any automated use of it’s platform, it is important to be cautious about using such solutions, since done wrongly you might have your profile temporarily or even permanently suspended by LinkedIn. If you do want to automate your LinkedIn outreach you should choose only the best and most sophisticated provider. Expandi, based out of the Netherlands, claims to be the safest LinkedIn automation tool, and are completely cloud based. They offer a lot of features to help you set up a complicated drip campaign to prospective accredited angel investors via LinkedIn.

Using Expandi is a great option for startup founders that don’t have the resources to delegate this rather complicated task to an experienced agency or to hire an SDR (sales development representative) to do it for them. For founders that want to save resources but do feel they require more help and do not want to DIY their LinkedIn outreach to investors, some agencies offer a dedicated account manager to help with searches and with setting up automated outreach on LinkedIn. One such agency, that seems to receive great reviews, is Cleverly.

Another such service is LeadLoft, which helps founders systematize, focus and track their outreach to investors, but leaves most of the effort and work in the hands of the startup. LeadLoft provides it’s clients with a dashboard and software to manage their outreach, and assistance in setting up and managing the campaigns. They combine LinkedIn outreach with automated emails, so they can create more than one touch point with a potential investor on behalf of the startup founder. One of LeadLoft’s specialties is helping startup founders connect with angel investors, and they have a database of investors with their emails and LinkedIn profile links. Their system allows the founder to go through their database and select investors to reach out to, using several criteria.

While there are clear advantages to finding accredited angel investors and approaching them on LinkedIn, you must consider one very big challenge you are bound to face: finding the right ones. Many people present themselves as investors and might come out as results if you search for angel investors in LinkedIn or even with Sales Navigator, but are actually not very keen on investing. In fact, the unfortunate truth is that many people that are interested in selling their services to startups, present themselves as investors to attract startup founders to connect with them. To avoid wasting time on people that are not truly keen on investing in startups, you will have to read between the lines and be very choosy about who you actually reach out to. Moreover, you will need to try and figure out about each investor if they are actually using their LinkedIn account and checking regularly, as otherwise it would be pointless to try and connect with them on the platform. For those that don’t have capacity to do such research, or hire for such a research position, a full service or done for you service model could be the best approach. 

How to connect and get calls with accredited angel investors (done for you) 

Many marketing agencies specialize in helping companies find and connect in person with prospective leads, and indeed many of them focus on LinkedIn as the main platform to operate on. In the context of finding accredited angel investors, such agencies create lists of prospective investors, find their profiles on social media, LinkedIn in particular, and their emails, and finally do the work of reaching out to them on behalf of the clients. These services come at a cost and could often be priced at several thousand USD per month, because they effectively replace the cost of a full time SDR (sales development representative) and also save the need to find and train one. 

There is only one such service that we know of that is focused on helping startups raising capital via equity crowdfunding: Native Lead.

Native Lead has specialized in helping startups during their Reg CF or Reg A campaigns, and has the experience of getting the founders of such startups in meetings with accredited angel investors. They have many happy customers (and testimonials to show for) and have the biggest database of public investor profiles, all checked manually by their trained personnel.

Native Lead will help you turn your LinkedIn profile to an investor magnet, then go manually through potential investor profiles to find the ones that could be a good match, reaches out to them on behalf of the startup’s CEO or founding team, and books calls with accredited angel investors on your calendar. 

Native Lead is also our affiliate (*disclaimer*) and if you mention CrowdFunding.Guide or the promo code CFG22 – you will receive $300 off any service you purchase from them. You can also receive a free consultation on how to quickly fix your personal LinkedIn profile and turn it into a lead generation magnet for your current needs.

Summary

Startups raising capital via equity crowdfunding must have a strategy to raise money from accredited angel investors. There are various ways startup founders can do this, either by reaching out to angel investors themselves, or with the help of dedicated services.

The post How To Find Angel Investors For Your Startup’s Equity Crowdfunding Campaign appeared first on CrowdFunding.Guide.

Covid-19 introduced many challenges during 2020, not the least of which a drastic downturn in economic activity that has all but dried up most fundraising channels. However, out of this environment that is in shock, crowdfunding emerged as a successful alternative. Unlike its conventional counterparts, crowdfunding provides key advantages such as faster access to capital, a larger audience, and a more affordable process. This trend continued strongly in 2021, with more capital, more startups, and more platforms joining the online equity crowdfunding scene.

Having been estimated to reach USD 8.5BN in 2020, the latest data reveals that the 6,445,080 crowdfunding campaigns last year raised a total of USD 34BN. With diverse audiences from serious investors to inexperienced people supporting a community project, companies seeking funding need to leverage the appropriate platforms to reach those who want to invest in equity crowdfunding.

Top Equity Crowdfunding Platforms for 2023 (Our Picks)

Platform	Our Rating	Target Return	Fees	Account minimum	Learn More
	10/10	Varied (typically 10% – 20%)	2%	$100	Wefunder.com
	9/10	Varied (typically 10% – 20%)	3.5%	$100	Startengine.com
	10/10	Varied (typically 10% – 20%)	0%	$100	Republic.com
	9.5/10	Varied (typically 8% – 12%)	0%	$100	Mainvest.com
	9.5/10	Varied	2%	$500	Seedinvest.com

A Unique Way to Invest

While there are other ways to acquire equity in companies, equity crowdfunding is unique in that investors can buy shares in very small increments – less than a hundred dollars, for example. And, while anyone can buy small amounts of stock market shares, equity crowdfunding allows individual investors to buy equity in startups and small companies that are a long way from listing on the stock market.

Risk and Return

Companies that list on equity crowdfunding platforms are often at a very early stage with no guarantee of successful growth. As a result, when you invest in equity crowdfunding, it is a high-risk investment that could potentially provide no return at all.

That said, if you choose wisely and invest in the best startups, you stand to gain significantly. In order to maximize your chances of a good return on equity crowdfunding, make sure you’re in touch with all the opportunities on the market. If you’re looking for the top equity crowdfunding investments, here are the most active equity crowdfunding platforms in the United States and Europe in 2023.

Leading Equity Crowdfunding in the United States

Wefunder	Year Founded: 2012	Minimum Investment: $100
	Primary Location: San Francisco, United States	Fees: 2%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Wefunder states that it is the largest portal for equity crowdfunding both by investment volume and a total number of investors. To date, it has raised over USD 122M for Regulation Crowdfunding campaigns, USD 36M for Regulation D fundraising, and over USD 9M for Regulation A+ campaigns. These significant figures can be largely attributed to the broad range of startups it attracts, such as an online encyclopedia, a bionic pancreas, and a film production.

The platform accepts funds from international investors, with a flat 3.5% service fee, reduced to 2% if transfers are made using a credit card alternative. US-based startups can apply to join the platform, the charge is a flat 7.5% and only if funding succeeds, which covers all brokerage fees. Wefunder’s strength may well lie in its openness to startups of all colors – indeed, Wefunder is open to any company pursuing the American Dream.

StartEngine	Year Founded: 2015	Minimum Investment: $100
	Primary Location: Los Angeles, United States	Fees: 3.5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

StartEngine claims to be the largest equity crowdfunding platform in the market. With 190,040 individual investments made during 2020, the platform saw an increase of 241% from their 76 investments in 2019. StartEngine carries listings of every shape and size, with a wide range of environment-friendly startups plus plenty of tech companies and a couple of CBD companies too.
As an investor you won’t pay any fees to participate in a StartEngine listing, as companies listing on StartEngine are charged a fixed fee plus a dollar percentage of the capital raised – and an equity share. International investors can participate, but the platform only accepts listings from companies based in the US.

StartEngine is unique in that they also give investors the opportunity to trade shares in startups via StartEngine Secondary. The concept of this is similar to the stock market –  investors buy and sell shares of your startup, and they also have the option to convert shares to cash. These shares come with a 5% sell fee.

In addition to their equity crowdfunding platform, StartEngine also has a collectible investment program. These collectible investments are structured under Reg. A+ and currently have a $500 minimum investment. Some of the collectibles currently available include luxury art, rare trading cards, and fine wine.

Republic	Year Founded: 2016	Minimum Investment: $100
	Primary Location: New York, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Republic, part of the Angel List family, was set up in 2016 in response to Title III of the JOBS Act, which enabled individual investors on average incomes to start investing in startups for the first time. The platform is geared towards everyday investors, with an investment minimum of just $10. Investors pay no fees when investing via Republic and the platform accepts investments from non-US citizens.
Despite only US-based companies being listed on Republic, investors will find an array of startups on Republic ranging from health and wellness to fintech – including cryptocurrency startups. Companies that raise funds on Republic pay a 6% charge on funds raised, only if the funding goal is reached while an optional 2% is charged if a company participates in Republic’s Crowd Safe program.

Pros

• Variety of investment opportunities: Republic offers investments in a range of industries, including technology, real estate, and entertainment, giving investors a diverse range of options.
• Low investment minimums
• Experienced management team

Cons

• Limited investment options for non-accredited investors
• Limited liquidity: As with any private investment, there is limited liquidity in Republic campaigns, making it challenging to sell shares if the company does not go public or get acquired.
• Limited track record

Visit Republic

 

Mainvest	Year Founded: 2018	Minimum Investment: $100
	Primary Location: Salem, Massachusetts, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 8% – 12%)
	Country Available: Worldwide	Term of Investment: Varied (typically 1 – 5 years)

Mainvest allows anyone to invest in small businesses across the United States while simultaneously deploying community capital into the neighborhoods they live, visit, and enjoy.
Mainvest aims to empower the future of brick and mortar retail & hospitality businesses by connecting local entrepreneurs with investors who are looking to diversify into a previously inaccessible asset class. More than $11M has been invested through the platform to date.

Pros

• The unique opportunity for small businesses to access funding through crowdfunding
• The platform allows investors to support local businesses in their communities
• Has a low minimum investment amount of $100

Cons

• Only available to investors in certain states in the US
• The platform is relatively new and has a limited track record
• The platform is not regulated by the SEC, which could increase the risk of fraud or other issues

Visit Mainvest

SeedInvest	Year Founded: 2011	Minimum Investment: $500
	Primary Location: New York, United States	Fees: 2%
	Non-Accredited Investors? Yes	Target Return: Varied
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Accepting only 1% of the startups that apply to the platform, SeedInvest is an exclusive marketplace that raised a total of $5.1M in 2020. While the platform submits startups for intense vetting, investors can take part in the action with as little as $500 with 2% in fees. Capped to USD 300, fees are refunded if the listing does not reach its fundraising goal.
SeedInvest has listed a broad range of company’s looking for funding, from robotics through to food and beverage alongside a number of interesting healthcare startups. All listed companies are in the United States and SeedInvest accepts investments from outside the United States as long as local laws and requirements are met.

Pros

• A user-friendly interface and provides educational resources to help investors make informed decisions
• Offers a secondary market
• A registered broker-dealer and is regulated by the SEC, providing greater investor protection.

Cons

• Only available to accredited investors
• Requires investors to have a relatively high net worth and income
• The platform has a limited number of investment opportunities available at any given time, which could restrict investors’ options

SeedInvest Review

 

MicroVentures	Year Founded: 2019	Minimum Investment: $100
	Primary Location: Austin, United States	Fees: 1%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 5 years)

While MicroVentures offers a broad choice of investment services, readers will be attracted to its range of equity crowdfunding opportunities – some with investment minimums as low as USD 100. Crowdfunding listings have an investor cost of 5% and investors can look forward to a broad range of funding rounds including robotics, healthcare and entertainment. Overall, MicroVentures says it has been responsible for over USD 220m in investments and hopefully, over time, more of these will be in the shape of equity crowdfunding.

Pros

• The platform thoroughly vets companies before listing them on the site, reducing the risk of investing in scams or fraudulent ventures
• Provides detailed information about each company on its platform
• Has a track record of successful investments

Cons

• The secondary market on MicroVentures is relatively illiquid
• Requires investors to be accredited
• The investment minimums on the platform can be relatively high

Microventures Review

 

Netcapital	Year Founded: 2014	Minimum Investment: $99
	Primary Location: Boston, Massachusetts, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: US Only	Term of Investment: Varied (typically 3 – 5 years)

In a relatively novel twist to equity crowdfunding, Netcapital offers investors the opportunity to buy shares in unlisted, established companies from as little as USD 99. If you are interested in investing somewhere other than the latest, the trendy startups on Netcapital may be of real interest. Listings are concentrated around cutting-edge tech and healthcare businesses.
Netcapital investors pay no fees to invest, with all funds paid to Netcapital used to acquire shares. Companies listed on Netcapital pay a 4.9% fee. International investors can participate, though only US companies can list on Netcapital.

Pros

• Wide Range of Investment Opportunities
• Low Investment Minimums
• Transparent Fees: Netcapital charges transparent fees for its services, which makes it easier for investors to understand the costs of investing.

Cons

• Limited Due Diligence
• Limited Liquidity: As with most private investments, liquidity can be limited on Netcapital. Investors may not be able to sell their shares easily, and it may take time to find a buyer.

Netcapital Review

 

Fundify	Year Founded: 2019	Minimum Investment: $10
	Primary Location: Austin, Texas, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: US Only	Term of Investment: Varied (typically 3 – 7 years)

Fundify is a tech-driven equity crowdfunding platform that enables almost anyone in the U.S. to invest in startups and other early stage companies with as little as $10. They’re on a mission to simplify startup funding and investing with technology and by pairing qualified startups with an expert in their field for review and comment.

Pros

• Selective Project Listings: Fundify is highly selective in the projects it lists on its platform.
• Focus on Social Impact: Fundify focuses on projects that have a positive social impact, such as renewable energy, education, and healthcare.
• User-Friendly Platform

Cons

• Limited Information Available
• Limited Liquidity

Fundify Review

 

FanVestor	Year Founded: 2018	Minimum Investment: $250
	Primary Location: Los Angeles, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Fanvestor enables entertainment and sports celebrities to capitalize on their social media
fan basis. The Fanvestor platform allows their fans to invest in their businesses and take part in their success. Some of the celebrities featured on Fanvestor in 2020-2021 include: The Jonas Brothers, DJ Khaled, the LA Dodgers, Ryan Seacrest, Jackson Wang, Hamilton the Musical, and more.

Pros

• Celebrity-Driven Projects: Fanvestor focuses on projects that are associated with celebrities or well-known brands. This means that investors can invest in projects that they are passionate about and that have a higher likelihood of success due to their existing fan base.
• Low Investment Minimums

Cons

• Limited Project Listings
• Limited Due Diligence

FanVestor Review

 

Localstake	Year Founded: 2013	Minimum Investment: $100
	Primary Location: Indianapolis, Indiana, United States	Fees: Varied
	Non-Accredited Investors? Yes	Target Return: Varied (typically 5% – 10%)
	Country Available: US Only	Term of Investment: Varied (typically 2 – 5 years)

If you want to support a local business while enjoying a return on your investment, Localstake might be just what you’re looking for. The US-based startups seeking funds on Localstake typically operate in food and beverage, real estate, or energy and healthcare; all with a local focus. There are no fees charged to investors.
Localstake platform does not publish any restrictions on the location of investors, though it does appear as if it is only US-based companies that are listed as investment opportunities. Investors can also choose from revenue share loans, convertible debt, and traditional loans in addition to an equity investment.

Pros

• Local Focus: Localstake focuses on connecting investors with local businesses, which can provide a sense of community and a greater understanding of the businesses in which they are investing.
• Strong Due Diligence
• User-Friendly Platform

Cons

• Limited Availability: Localstake is currently only available in certain states.
• High Fees: Localstake charges high fees for its services, which can eat into investors’ returns.

 

Bioverge	Year Founded: 2016	Minimum Investment: $2,500
	Primary Location: San Francisco, United States	Fees: 0%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: US Only	Term of Investment: Varied (typically 3 – 7 years)

The world’s healthcare needs have evolved drastically. As the healthcare innovation required to meet these needs continues to grow, it stands to reason that investors want to be in on the action. US-based Bioverge offers a highly vetted list of healthcare startups across the US, covering everything from drug development through to medical devices and crowdsourced medical expertise.
Bioverge states that its Dynamic Diligence process makes use of a decision-analysis model to determine the risk-adjusted return of unique science startups. Companies listing on Bioverge are charged a one-off sum to cover setup fees plus 8% of funds raised which includes equity coverage courtesy of Crowd Safe.

Pros

• Focus on Biotech and Healthcare: Bioverge specializes in biotech and healthcare investments, providing investors with access to a high-growth sector with potentially significant returns.
• Experienced Management Team
• Diverse Investment Opportunitie

Cons

• High Minimum Investment
• Limited Track Record

Leading Equity Crowdfunding in the UK

Crowdcube	Year Founded: 2011	Minimum Investment: £10
	Primary Location: Exeter, Devon, UK	Fees: 0.5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: UK Only	Term of Investment: Varied (typically 3 – 7 years)

 Startups: Click here to receive a 10% discount on CrowdCube fees 

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For years Crowdcube has dominated equity crowdfunding in the UK with one of the broadest range of startups listed. Ranging from technology outfits through to brewing companies and car clubs. Mostly for UK investors and startups, it accepts funds from international investors in some cases but may require additional documentation. Startups that are headquartered in Europe can apply for a listing on Crowdcube, with a minimum investment threshold of GBP 50,000 – though one startup, BrewDog, raised a phenomenal GBP 10m.

Startups are eligible to a 10% discount on all fees if they mention they were referred by CrowdFunding.Guide.

Pros

• Wide Range of Investment Opportunities
• Low Minimum Investment
• Strong Community

Cons

• Risky Investment: many of the companies listed on the platform are early-stage startups with an uncertain future.
• Limited Investor Protection
• Limited Availability: Crowdcube is currently only available to UK investors.

Crowdcube Review

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Seedrs	Year Founded: 2009	Minimum Investment: £10
	Primary Location: London, England, UK	Fees: 7.5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

With 2020 being its most successful year to date, Seedrs raised GBP 239M last year alone. Starting your equity crowdfunding investment is particularly easy with Seedrs. The platform accepts investments from as little as GBP or EUR 10. You won’t pay any fees when you invest, instead Seedrs charges a flat 7.5% on any profits you make. Startups pay a 6% commission on funds raised and a completion fee. If you’re investing from outside the UK you will need to self-certify as an accredited investor as determined by your local jurisdiction, though everyday investors in the UK and EU can participate in Seedrs.
Investors have access to startups located across Europe, with investments denoted in both GBP and EUR. Every startup on Seedrs has a tech or novel edge to it, but they are sector agnostic. If you want to invest in equity crowdfunding, you can find anything from a premium drinks company to mobile banking and mental health apps.

Seedrs has been acquired by the US based Republic, but currently still operates under the Seedrs brand, as before.

Pros

• Highly transparent with clear fee structure and detailed risk warnings.
• User-friendly and intuitive platform with easy navigation and investment process.
• Strong track record of successful crowdfunding campaigns and positive reviews from investors.

Cons

• Limited liquidity as most investments are long-term with no guaranteed returns.
• Limited international reach with a focus on UK-based startups and small businesses.

Seedrs Review

 

Crowd for Angels Ltd.	Year Founded: 2019	Minimum Investment: $150
	Primary Location: London, England, UK	Fees: 7%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 8% – 12%)
	Country Available: Worldwide (except the US)	Term of Investment: Varied (typically 1 – 5 years)

Smaller in size than Seedrs and Crowdcube, London-based Crowd for Angels still offers an interesting line-up of equity crowdfunding listings, including the opportunity to participate in bond offerings. Equity listings qualify for UK EIS tax relief, and investors pay no fees to Crowd for Angels. The platform accepts international investors, with the exception of investors in the United States.
On the flipside, companies seeking funds via Crowd for Angels pay a 7% success fee and a fixed completion fee. Startups that raised funds on Crowd for Angels include a Swiss watch brand, a content monetization platform as well as an outdoor web retailer and a Namibian oil explorer. All in all Crowd for Angels offers a very eclectic mix.

Pros

• The company has a secondary market where investors can sell their investments to other investors.
• Has a transparent fee structure with no hidden charges.

Cons

• The company has a relatively small selection of investment opportunities compared to other crowdfunding platforms.
• Focused on investors in the UK and Europe, limiting its potential investor base.

 

GrowthFunders	Year Founded: 2012	Minimum Investment: £100
	Primary Location: London, England, UK	Fees: 5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Having raised GBP 4,9M in 2020, GrowthFunders offers investors the chance to get started with as little as GBP 100. Registration is free and the platform does not list any fees for investors. Startups, on the other hand, pay 5.5% to cover fundraising fees and payment processing, plus a fixed fee to cover legal costs.
GrowthFunders does not publish any restrictions on the domicile of its investors, while it does appear as if opportunities listed on GrowthFunders are all located in the United Kingdom. Previous successful rounds include a workforce engagement platform and modular housing project – in tune with GrowthFunders’ stated intent to focus on social and environmental investment opportunities.

Pros

• Specializes in growth equity investments, which can provide longer-term support for businesses to scale and expand.
• Offers a personalized approach to working with portfolio companies, with a focus on building relationships and providing support beyond just funding.

Cons

• Limited information available on the platform’s fees and charges.
• Poor community

 

Leading Equity Crowdfunding in the EU

 

Companisto	Year Founded: 2012	Minimum Investment: €5 – €500
	Primary Location: Berlin, Germany	Fees: 5% for companies; 10% for investors
	Non-Accredited Investors? Yes	Target Return: Varied (typically 5% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Looking to invest in Germany’s cutting-edge startups? Companisto accepts investments from as little as EUR 1,000, and anyone of legal age can invest, no matter where they are in the world – with the exclusion of investors based in the US. Over EUR 70m has been invested in Companisto listings, with more than 100,000 investors participating.

Companies listed on Companisto are not visible to non-members, but successful investment rounds on Companisto have included a unique digital marketing solution, cutting-edge VR technology as well as a novel dental startup specializing in a patented orthodontic system.

Pros

• Access to early-stage investment opportunities
• Diversification: Investors can invest in multiple startups on the platform, which can help spread the risk and diversify their portfolio.
• User-friendly platform

Cons

• Limited liquidity: Investing in early-stage startups can be risky, and there is no guarantee of a return on investment.
• Limited customer support

Visit Companisto

SeedBlink	Year Founded: 2019	Minimum Investment: €100
	Primary Location: Bucharest, Romania	Fees: 5% – 7%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: EU, UK, and Switzerland	Term of Investment: Varied (typically 3 – 7 years)

SeedBlink is a full-service investment platform that enables everyday and accredited investors to access curated European tech startups via equity crowd-investing and angel syndicates. Seedblink’s focuses on innovative technologies and VC-grade screening process. On the investor side, they partnered with many EU based VCs and angel groups. They are growing rapidly and aim to be the largest in the EU.

They started in December 2019, and they’re now counting a community of 7.000 like-minded investors enrolled on their platform, from 47 countries. Recently, they have surpassed 33M EUR collected in 57 campaigns, with almost 12M EUR raised directly through crowdinvesting in their 20 months of activity.

Pros

• Wide selection of investment opportunities
• Positive track record

Cons

• Limited geographic focus
• Limited information on the platform

SeedBlink Review

 

Startupxplore	Year Founded: 2014	Minimum Investment: €100
	Primary Location: Valencia, Spain	Fees: 5% – 10%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 5 years)

Looking to invest in startups in Spain? Startupxplore may be your best bet, the platform claims it has raised over EUR 9.79M for 44 startups from 33,947 investors. It offers an interesting proposition for investors: 0% in initial brokerage fees, but the company charges 10% on any capital gains made through an investment, once sold.
Though startups on Startupxplore are concentrated around Spain, the platform lists opportunities from across Europe. Companies can register on the platform simply for visibility – or to raise capital. Opportunities on Startupxplore include home food delivery, a cosmetics startup and a GPS sensor for seniors.

Pros

• Provides investors with detailed information about the companies available for investment
• Has a good reputation among investors and is well-regarded in the crowdfunding community

Cons

• Limited availability
• Limited user base

 

WiSeed	Year Founded: 2008	Minimum Investment: €100
	Primary Location: Paris, France	Fees: an initial 0.9% investment fee; a further 5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 5% – 10%)
	Country Available: Worldwide (non-French speakers with limitations)	Term of Investment: Varied (typically 3 – 5 years)

In contrast to many other equity crowdfunding platforms, WiSeed offers individual investors the opportunity to also invest in mature companies and SMEs, all based in France – alongside the ability to invest in startups. WiSeed says that the platform concentrates on environmental, healthcare and tech startups.
The investment minimum is EUR 100, with an initial 0.9% investment fee, with a further 5% in charges for equity investments. The platform also charges a 10% fee on any income distributed to investors. Though fees may appear high, Wiseed has raised EUR 261M from 19,000 investors.

Pros

• User-friendly platform
• Diverse investment opportunities
• Focus on sustainability

Cons

• Limited geographic focus
• Limited availability
• Limited transparency

 

Funderbeam	Year Founded: 2013	Minimum Investment: €100
	Primary Location: Tallinn, Estonia	Fees: 5% – 7%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

Estonia’s digital-first approach to society makes it a natural home for an equity crowdfunding platform. Funderbeam lists a range of European startups with a strong focus on food products and companies that benefit society – think STEM education, and smart street benches. Investors are charged 5% plus a fixed once-off fee.
Investors in turn pay 3% where funding is successful. An interesting aspect of Funderbeam is that it also acts as a secondary market, adding an element of liquidity that is often lacking in equity crowdfunding. Anyone can invest in a Funderbeam listing with the exception of residents of the United States and a couple of other countries.

Pros

• Offers a secondary market for investors
• Transparency

Cons

• High fees
• Limited availability

 

FundedByMe	Year Founded: 2011	Minimum Investment: €100
	Primary Location: Stockholm, Sweden	Fees: 2.5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 5% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 3 – 7 years)

With press coverage in publications including Wired, the Guardian and TechCrunch plus over EUR 72M invested into companies, Sweden’s FundedByMe is clearly a serious player in the European equity crowdfunding space. At the time of writing FundedByMe had ten live investment opportunities ranging from food and beverage to furniture, travel and fashion with companies from all over Europe.
The minimum investment amount on FundedByMe is EUR 100. The platform does not appear to charge investors any fees. But companies listed on FundedByMe pay a listing fee and 8% of any amount successfully raised. FundedByMe accepts investments from international investors.

Pros

• International reach
• Low minimum investment

Cons

• High fees
• Regulatory challenges: FundedByMe has faced regulatory challenges in some countries, which could affect its ability to operate in those regions.

 

Sowefund	Year Founded: 2014	Minimum Investment: €100
	Primary Location: Paris, France	Fees: 2.5% – 6%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 2% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 7 years)

Whilst the Sowefund website is strictly French language-only, the platform impresses with the numbers quoted – EUR 45M raised, 50 startups financed, and 72,000 members. Sowefund lists an interesting mix of startups with a strong social and environmental undertone, think photovoltaic balloons, and raw materials made from insects.
Sowefund charges investors 4.5% to 6% of funds invested, with an investment minimum of EUR 1,000. It doesn’t publish any restrictions on who can participate in a Sowefund listing, though the French language nature of Sowefund may prove to be an obstacle. Non-accredited investors can invest up to €2,000 per startup and €5,000 per year.

Pros

• Approved by French regulators
• The platform allows investors to invest in early-stage startups with as little as €100, increasing accessibility to investment opportunities.

Cons

• Only available to French investors
• Charges high fees

 

Invesdor	Year Founded: 2012	Minimum Investment: €100 – €1,000
	Primary Location: Helsinki, Finland	Fees: 1% – 5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 5 years)

With offices in Helsinki and Stockholm, Invesdor appears to make a good effort to cover startup investment opportunities in the Nordics. It has a track record of multi-million euro investment rounds across businesses as diverse as clothing, bicycle repair, and a smart medical needle – mostly located in Northern Europe.
Fees for investors are reasonable at just 1%, only charged when an investment round is successful. Companies, on the other hand, are charged a variable fee likely to be in line with industry standards. Invesdor publishes no restrictions on investor status or location, but some restrictions may apply.

Pros

• Provides a user-friendly interface
• Provides a unique opportunity for investors to support startups and other businesses and potentially earn high returns.

Cons

• Poor customer support
• Invesdor is based in Finland, which may limit investment opportunities for investors in other regions.

 

Leapfunder	Year Founded: 2012	Minimum Investment: €1000 – €10,000
	Primary Location: Amsterdam, Netherlands	Fees: 4% and a one-time legal fee of €250
	Non-Accredited Investors? Yes	Target Return: Varied (typically 5% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 5 years)

With offices in Amsterdam and Berlin, Leapfunder gives private investors the opportunity to invest in some of Europe’s most interesting startups – starting from as little as EUR 1,000. The platform does not state any restrictions around the domicile of investors, while startups listed on Leapfunder appear to be located in The Netherlands and nearby.
Run by CEO Tienko Rasker, Leapfunder has funded 118 rounds since 2014 with many startups receiving multi-million euro investments via the platform. Startups on Leapfunder are tech-first, covering areas such as AI-powered consumer advocacy through to digital VAT refunds.

Pros

• Provides a way for startups to connect with a wide range of investors, including angels, family offices, and venture capital firms.
• Has a strong presence in the European startup ecosystem.

Cons

• Relatively small platform compared to some of its competitors.
• The issue with the company’s customer support team.

 

Green Rocket	Year Founded: 2019	Minimum Investment: €250
	Primary Location: Luxembourg	Fees: 5% – 12%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 10% – 20%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 5 years)

Investors looking to participate in the sustainability movement should take a look at Green Rocket. Europe’s first equity crowdfunding platform for startups in energy, the environment and associated health and mobility issues. Successful rounds include companies across the healthcare, environment and energy sectors.
The Green Rocket website is in German language only, but potential investors would be glad to know that the minimum investment is just EUR 250, while the platform does not charge fees to investors. However, you must reside in Germany or Austria to invest with Green Rocket. Companies listing on Green Rocket can expect to pay a maximum of 12% in fees plus an annual service fee of 1.5%.

Pros

• Low account minimum
• User-friendly platform

Cons

• High fees
• Limited availability

 

Symbid	Year Founded: 2011	Minimum Investment: €20 – €100
	Primary Location: Rotterdam, Netherlands	Fees: 1% – 6%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 7% – 12%)
	Country Available: EU; may be limited for international investors	Term of Investment: Varied (typically 3 – 5 years)

Based in Rotterdam, Symbid gives private, individual investors the opportunity to invest in startups and growing businesses – via either an equity investment or convertible bonds. So far, Symbid has raised EUR 33M from over 55,673 investors across 219 deals. With a low minimum investment of EUR 20 and just 1% in investment fees Symbid may be an attractive proposition.
Symbid does not aim to be a home for any specific type of business – instead, recent completed funding rounds include a smartphone app for music artists, a renewable energy project, and a company producing seaweed food products.

Pros

• A long track record and experience in the industry
• The platform has a large network of investors, startups, and partners.

Cons

• There are limited details available on the platform’s fees and charges
• Difficult for investors to understand the costs of investing

 

Capital Cell	Year Founded: 2012	Minimum Investment: €100
	Primary Location: Barcelona, Spain	Fees: 5% – 7%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 7% – 12%)
	Country Available: Spain & EU; may be limited for international investors	Term of Investment: Varied (typically 2 – 5 years)

Headquartered in Barcelona with an office in Cambridge. Capital Cell is focused purely on crowdfunding companies that operate in the life sciences space. The platform says its unique vetting process puts it in prime position to select the best healthcare and biotech startups. Capital Cell’s niche angle does limit active investment opportunities, with four listed at the time of writing.
The Spanish-language website for Capital Cell contains more details on how the platform works. The minimum investment is just EUR 100, while investors do not pay any fees to invest in a Capital Cell startup. International investors can participate, but not if they are located in a country designated as a tax haven by the Spanish government. Companies listed on Capital Cell pay up to 7.5% of funds raised in fees.

Pros

• Specializes in biotechnology and life sciences
• Strict vetting process

Cons

• Limited range of investment opportunities
• Limited liquidity

Bolero	Year Founded: 2014	Minimum Investment: €5,000
	Primary Location: Brussels, Belgium	Fees: 0% – 4.5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 3% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 7 years)

Backed by Belgium’s KBC Group, Bolero has EUR 22M in investment deals across 72 funding rounds under its belt. The website is only available in French or Dutch. But it clearly explains investment requirements – minimum investment of EUR 5,000 and no fees for investors, though companies listed on Bolero pay 4.5%. Non-accredited investors can invest up to €5,000 per project.
The platform lists a broad range of investment options. From a bicycle factory based in Belgium through to property and finance investments. You’ll also find fintech startups alongside the typical crowdfunded food and beverage businesses on Bolero.

Pros

• Offers a wide range of investment opportunities, including equity and debt crowdfunding.
• Provides a simple and user-friendly platform for investors.

Cons

• The platform only operates in Belgium
• Charges high fees

 

Seedmatch	Year Founded: 2011	Minimum Investment: €250
	Primary Location: Dresden, Germany	Fees: 5% – 7%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 6% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 2 – 7 years)

Claiming an average return of 15% p.a., Seedmatch promises investors a unique opportunity to get a stake in German startups. So far, the platform has raised EUR 57m and investors can get on board with as little as EUR 250. Investors are not charged any fees for investing with Seedmatch.
Companies listing on Seedmatch pay 5% to 10% in fees on funds raised, but only if the investment round is successful. Listings cover the startup remit, from mobility through to healthcare and food and beverage. There are no restrictions on who can invest, Seedmatch just requires that you’re over 18, but non-accredited investors can invest up to €1,000 per project.

Pros

• Low minimum investment
• Availability for international investors

Cons

• Limited investing options for non-accredited investors
• High fees

 

Happy Capital	Year Founded: 2016	Minimum Investment: €100
	Primary Location: Paris, France	Fees: 3% + VAT
	Non-Accredited Investors? Yes	Target Return: Varied (typically 3% – 10%)
	Country Available: Worldwide	Term of Investment: Varied (typically 5 – 7 years)

Investors can choose from a range of innovative startups of all shades. Most companies on Happy Capital are clustered around Paris. There is a substantial number of startups to choose from – it is a very active platform.
The investor fee on Happy Capital is 3%+VAT, with investment opportunities starting from just EUR 100. Companies, in turn, pay between 6% and 8% of the total amount raised on the platform. Note that investments must be kept for a minimum of five years, and non-accredited investors can invest up to €2,000 per project.

Pros

• Offers both equity and lending-based crowdfunding options
• Offers a unique profit-sharing model for investors

Cons

• May limit investment opportunities for non-French investors
• Has limited track record

 

Leading Equity Crowdfunding in Israel

 

ExitValley	Year Founded: 2015	Minimum Investment: $100
	Primary Location: Tel Aviv, Israel	Fees: 5%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 7% – 15%)
	Country Available: Worldwide	Term of Investment: Varied (typically 1 – 5 years)

ExitValley has raised over USD 30m across more than 69 campaigns, with an eclectic range of startups under its roof. Investors have funded biotech outfits, an on-demand shopping platform as well as an art gallery. Note however that unlike other equity crowdfunding platforms, minimum investments on ExitValley are relatively high. In the range of several thousand dollars, at least.
Anyone in Israel or the EU can invest, and ExitValley accepts investments from accredited US investors. Investors are charged a 5% sales commission when shares are sold. While companies listing on ExitValley pay an establishment fee of USD 3,500 plus 10% of the funds raised, if successful.

Pros

• Provides an easy-to-use platform for investing in high-potential startups and businesses.
• Offers flexible investment options, including equity and debt investments.

Cons

• Focuses on investors who are based in Israel.
• Primarily focuses on early-stage startups, which may not be suitable for investors who are looking for more stable and established investment opportunities.

ExitValley Review

 

Together	Year Founded: 2015	Minimum Investment: NIS 1,000 – 5,000 (apprx. $300 – $1,500)
	Primary Location: Tel Aviv, Israel	Fees: 5% – 8%
	Non-Accredited Investors? Yes	Target Return: Varied (typically 8% – 20%)
	Country Available: Israel	Term of Investment: Varied (typically 1 – 5 years)

Looking to get in on the action in the Israeli startup scene? Together offers a unique proposition, with a range of startups based in Israel – all open for investment. Healthcare and property investments appear to be the overriding theme, with several active funding rounds at the time of writing.
Together does not specify what the fees for investors are, only stating that companies listing on the platform will pay a commission on funds successfully raised. Minimum investment thresholds are relatively high on some listings – up to USD 20,000 in one instance, and non-accredited investors can invest up to NIS 20,000 per year.

Pros

• Wide range of investments
• High expected target return

Cons

• Limited availability
• Lack of detailed information on the website

Together Review

The post Leading Equity Crowdfunding Platforms for 2023 appeared first on CrowdFunding.Guide.

Each country has its own definition when it comes to an accredited investor, but in the main governments attempt to shield small-time, everyday investors from the risks of investing in a startup. So, non-accredited individual investors can invest in a limited selection of investment opportunities, along with restrictions on how much can be invested.

On the other hand, accredited investors – individuals with high incomes, or a high net worth that meets local criteria – can invest their money as they wish. In the US, the SEC sets criteria for accredited investors. A natural US person is considered an accredited investor when having a yearly income above $200k (or $300K together with a spouse), or a net worth above $1M (jointly with a spouse, excluding the value of one’s primary residence), but some additional regulations apply (see here). Recently the SEC has eased some of the accreditation criteria to include certain financial professionals as accredited investors.

Your country’s criteria for an accredited investor may differ – or there may be no restrictions whatsoever.
That said, equity crowdfunding platforms will often require participating investors to self-certify that they are acting as an accredited investor. In reality, this means that while the JOBS Act has opened up equity crowdfunding to the common (also known as “retail”) investor, many platforms remain restricted to accredited investors.

Moreover, to complete an investment in a startup or platform that only accepts accredited investors, you will usually have to verify your financial status with a third-party provider. Not to worry, nowadays such verification can be completed online fairly easily (for a small fee).

Top Equity Crowdfunding Platforms for Accredited Investors

Propel(x)	Year Founded: 2014	Minimum Investment: $5,000
	Primary Location: San Francisco, CA, US	Fees: 2% platform fee (for syndicated opportunities a 7.5% fee)
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: Worldwide	Term of Investment: 5 to 7 years

Propel(x) is an online investment platform that connects science and technology startups with investors. Their mission is to “unleash innovations, grow great businesses, and have an impact on the way people live.” Founded by Swati Chaturvedi and Lisheng Wang, MIT classmates, Propel(x) offers to introduce its users to potentially groundbreaking startups that are commercializing all kinds of deep technologies, including new forms of clean energy, life-saving drugs, new methods of space exploration, and innovative new materials, among other things. By facilitating private funding for startups based on scientific and technological breakthroughs, Propel(x) seeks to build the next generation of great companies.

Investors need to register and sign-in to review most of the opportunities on the platform.

Propel(x) Review

Angel Investment Network	Year Founded: 2004	Minimum Investment: $1,000
	Primary Location:Twickenham, UK	Fees: 0%
	Non-Accredited Investors? No	Target Return: Varied (avg. 20% – 30%)
	Country Available: Worldwide	Term of Investment: Varied

Angel Investment Network is a worldwide platform, where startups can add their listing to let accredited angel investors know about their capital raise. They boast an angel investor community larger than any other worldwide. Investors do not have to pay to access the Angel Investment Network, but rather fill out a form and are asked to declare their accredited status. Angel Investment Network does not curate their campaigns. This means that any entrepreneur or startup company can post a crowdfunding campaign here. They accept ventures in a wide variety of industries. There are fixed monthly fees for startups to add their listings, with special features to help connect directly with accredited investors. They do offer a free month for startups getting started on their platform. All in all, it is an inexpensive way for startups to get exposed to accredited investors from around the globe.

Private Wealth Global	Year Founded: 2019	Minimum Investment: $50,000
	Primary Location: United Kingdom	Fees: 2% upfront fee
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: Worldwide (excluding US and Canada)	Term of Investment: Varied

Private Wealth Global gives accredited investors worldwide (excluding investors from the USA and Canada) access to exclusive, curated off-shore real-estate investment opportunities, from $50,000 USD.

Their online wallet system was designed with the aim of removing all hassle from investors, and to allow them to withdraw funds easily or re-invest to take advantage of compounding returns.

Private Wealth Global Review

EquityNet	Year Founded: 2005	Minimum Investment: $1,000
	Primary Location: New York, NY, US	Fees: 0%
	Non-Accredited Investors? No	Target Return: 10% – 30%
	Country Available: Worldwide	Term of Investment: 1+ year

Operating as a funding platform since 2005, EquityNet claims to offer one of the largest funding venues. One aspect of EquityNet you’ll note straight away is the large funding goals. Companies listed on EquityNet seek funding in the tens of millions of dollars, not hundreds of thousands.
Only accredited investors can invest in EquityNet. Foreign investors can invest too as long as they comply with local laws. Interested investors need to set up an investor profile, the platform’s software uses the completed profile to find appropriate investment opportunities.

Investments are made directly with the entrepreneur and EquityNet does not charge fees to investors. Companies listing on EquityNet pay a subscription fee but pay no charges on the amount raised.
EquityNet appears to be a broad church, with companies of all shapes and sizes looking for investment via the platform. You don’t need access to the platform to view current opportunities. At the time of writing, companies listed on EquityNet included CBD businesses, a range of tech companies and property and hotel investments.

EquityNet Review

AngelList (is now Wellfound)	Year Founded: 2010	Minimum Investment: $1,000
	Primary Location: New York, US	Fees: 2% annual fee
	Non-Accredited Investors? No	Target Return: Varied (avg. annual 18.75%)
	Country Available: Worldwide	Term of Investment: Varied

Possibly one of the most well-known names on the US startup scene, AngelList acts as a broad platform for thousands of startups – offering talent acquisition, a community for startups as well as a prominent funding platform – AngelList Venture.
In line with its size and reputation, the company’s venture platform claims to have successfully funded 5,000 start-ups. Investors have several options ranging from a single-deal investment with a minimum of USD 1,000 through to a diversified fund, as well as a professional investment platform with an investment minimum of USD 500,000 per year.

Investment fees are a little more complex on AngelList Venture due to the syndicated nature of startup investments. However, investors have access to an incredibly broad range of startups, all tech-focused – ranging from B2B outfits to unique gadgets and healthcare solutions.

CrowdChayne	Year Founded: 2020	Minimum Investment: $2,000
	Primary Location: New York, US	Fees: 0%
	Non-Accredited Investors? No	Target Return: 8% – 10%
	Country Available: Worldwide	Term of Investment: 12+ months

CrowdChayne is a funding portal that connects investors to companies seeking capital. CrowdChayne’s founding team has years of banking experience, and they believe their network in the investment community gives them the necessary advantage in bringing companies with high potential for an exit to their investors.

Fundable	Year Founded: 2011	Minimum Investment: $1,000
	Primary Location: Powell, OH, US	Fees: $179/month fee for its Pro plan
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: US Only	Term of Investment: 6+ months

With over USD 500m in successful investment rounds, Fundable is clearly a serious player in the equity crowdfunding field. There’s a real high-tech feel to the startups listed on Fundable – think AI, data, and automation. As well as a range of tech hardware startups. The platform accepts listings from foreign companies as long as there is a US-registered presence.
Investors must self-certify as accredited when registering on Fundable. Sign-up requires a LinkedIn account, you also need to complete an investor profile.

Current opportunities are not visible unless you’re registered, but the site displays several recently funded companies. Fundable does not publish any fees for investors. Companies seeking investment pay a monthly listing fee, but there are no fees on funds raised.
In return for the monthly subscription fee, Fundable acts as a central hub for fundraising – with a strong social media aspect. Companies with an existing product or a product close to fruition can also opt for “reward” crowdfunding – instead of equity, investors receive a product or special edition in return for their investment.

FundersClub	Year Founded: 2012	Minimum Investment: $3,000
	Primary Location: San Francisco, California, US	Fees: Varied (1% – 30% carry fee)
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: Worldwide	Term of Investment: Varied (generally 1-3 years)

Looking to invest in cutting edge tech? FundersClub has more than 251 active companies in its portfolio, and listings are resolutely tech-first. Think SaaS, B2B solutions, and AI. Even the consumer goods companies on FundersClub are web or app-based. The full listing of FundersClub companies is available to view by the public.
The company acts as an investment fund. Accredited investors sign up, complete a profile and discuss their investment goals on a phone call. FundersClub offers a range of funds – some single-company, some containing several companies.
Fees are two-fold. A 1% to 30% carry fee plus annual management fees of 0.25% to 3%, depending on the fund. International investors can participate. The platform says it behaves like a typical venture capital firm in terms of fees for startups. With no percentage fees on funds raised, but the platform takes a share of profits.

AltaClub	Year Founded: 2015	Minimum Investment: $50,000
	Primary Location: Herzliya, Israel	Fees: 10% initial fee, 20-30% carry fee
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: Worldwide	Term of Investment: Varied

AltaClub markets itself as a co-investment platform. But it essentially comes down to equity crowdfunding as thousands of investors have already clubbed together to provide USD 150m in funding to over 200 startups.
Companies in the AltaClub fold include everything from logistics and mobility through to insurance and instant messaging platforms. Investors are charged an initial 10% fee on their investment to cover legal and administrative expenses, with a further 20% to 30% charged on any profits made.
The platform appears to accept international investors and has a base in Russia, Israel, and Austria. Investors have access to two portfolios: AltaIR Capital, with 180 startups, and AltaClub, which contains 30 startups.

Triodos Crowdfunding	Year Founded: 2018	Minimum Investment: £50
	Primary Location: Bristol City, UK	Fees: 0%
	Non-Accredited Investors? No	Target Return: 5% – 8%
	Country Available: Worldwide	Term of Investment: 6+ months

For many investors, investing is not just about making returns – it’s about doing good as well. The crowdfunding platform from Triodos Bank is focused on listings that can deliver change for the better. Think community platforms, renewable energy investments, and charity trusts. It’s clearly a specialist platform with less in terms of listing volume, but Triodos does display a clear track record.
The platform is open to investors in the UK who can self-certify as either high net worth or as a sophisticated investor. UK investors will be glad to know that Triodos offers investments via the innovative finance ISA, which holds tax benefits for many investors. Furthermore, Triodos does not charge fees to investors – all fees are charged to the fundraising organization.

iAngels	Year Founded: 2013	Minimum Investment: $10,000
	Primary Location: Tel Aviv, Israel	Fees: a 10% initial investment and 20% carried interest
	Non-Accredited Investors? No	Target Return: 20% – 50%
	Country Available: Worldwide	Term of Investment: 3+ years

Investors in iAngels can choose between directly investing in startups from as little as USD 10,000 per investment, or to opt for a managed and diversified investment account. You have to register to see available deals in iAngels, but it’s easy to do so. Just use your social media login, or register with your email address.
That said, previously funded companies are very much high tech in shape. Investors looking to invest in the latest technology trends are in the right place with iAngels. No food and beverage or property developers here. Instead, find everything from online marketplaces to FinTech, enterprise software, and the latest IoT applications.
To invest in Israel’s leading startups, investors pay a 10% initial investment, alongside a 20% fee on investment returns. International investors can participate. On the flip side, the startups listing on iAngels do not pay percentage fees.

OurCrowd	Year Founded: 2013	Minimum Investment: $10,000
	Primary Location: Jerusalem, Yerushalayim, Israel	Fees: 2% – 4%
	Non-Accredited Investors? No	Target Return: 15% – 20%
	Country Available: Worldwide	Term of Investment: Varied

The statistics appear staggering for an equity crowdfunding platform. OurCrowd claims it has USD 1.3bn in committed funds across over 200 portfolio companies while representing investors and companies in 183 countries. It’s clearly a sizeable platform, and visitors can get a taste of what’s on offer. Listings cover the high-tech remit, from novel healthcare solutions to cybersecurity, 3D printing, and mobility.

A full list of companies on OurCrowd is available to investors only. Accredited investors from anywhere on the globe can sign in via LinkedIn or by completing the website form. The platform offers startup equity investments via an SPV, but also multi-company funds for investors who prefer to diversify.
Investor funds are subject to three fees. A 4% once-off admin fee, and annual management fees of 2% for the first four years. A carry fee on profits of 20% (up to five times the amount invested). In return, the platform says it reviews over 3,000 companies every year – selecting just 1% to 2% for the platform.

Accredited Investors Have Access to More Opportunities

While accredited investors have access to all the opportunities that everyday investors can access, they have a broader selection available. So the reality remains that accredited investors get the best access to startup investments. That is due to a mix of existing legislation and equity crowdfunding platforms’ interpretation of this legislation, alongside the sheer investment commitment required by the best opportunities.

Furthermore, accredited investors are not restricted in terms of how much they can invest. Non-accredited, everyday investors can quickly run into annual investment caps, but accredited investors who know their stuff can make unlimited investments – and reap the returns.
It’s often the complex legislation that enacts investor protections that simply mean that accredited investors have more options – investing in the special purpose vehicles (SPVs) used by some equity crowdfunding platforms, for example. Indeed, accredited investors can invest directly in startups – an important ability given that sometimes equity crowdfunding platforms do not act as investing or funding intermediary, simply working to connect investors and startups.

With Accreditation Comes Opportunity – and Responsibility

From one perspective, accreditation is about the ability of an investor to absorb investment losses. But accreditation is also about responsibility: in other words, accredited investors are expected to be more educated when it comes to investments, and are aware of the high risks involved in investing in early-stage startups. In other words, accredited investors can be expected to do their homework. In investment parlance, we may say that due diligence is a key part of the investment process for accredited investors.

When it comes to equity crowdfunding it means that accredited investors ought to examine the fundamentals of a startup, including its position in the market and its future prospects. Accredited investors would be wise to do this for a wide range of opportunities, too – selecting the best opportunity in the process, rather than plumping for the first available opportunity.
Of course, this means that accredited investors should take a broad approach when seeking out opportunities, including evaluating equity crowdfunding platforms that are restricted to accredited investors. Doing so ensures that accredited investors don’t miss out on the very best startup investments.

For that reason, we’ve compiled the handy list above of equity crowdfunding platforms that focus on accredited investors who have the capital to participate in more exclusive funding rounds.

Final Verdict:

Equity crowdfunding is one of the best ways to find opportunities to invest in exciting startups in relatively small investment amounts. However, some of the most attractive online startup investments remain restricted to what’s called an accredited investor, in spite of the JOBS Act of 2012.

Crowdfunding has revolutionized the way that businesses and startups can raise capital from a broad range of investors. Accredited investors have unique opportunities to participate in crowdfunding campaigns through dedicated platforms that cater to their specific needs. With the growing number of crowdfunding platforms for accredited investors, it’s becoming increasingly important for investors to research and compare platforms before investing carefully. As with any investment, risks are involved, so it’s crucial to understand the platform’s fees, investment minimums, and due diligence process to make informed investment decisions. Ultimately, crowdfunding platforms for accredited investors can be a valuable tool for diversifying investment portfolios and supporting emerging businesses and ideas.

The post Crowdfunding Platforms for Accredited Investors in 2023 appeared first on CrowdFunding.Guide.

Real estate crowdfunding is a growing sector, as it addresses a true market need and unlocks unique value for investors.

Investing in real estate has always been a popular way to build wealth. It has two key benefits: invest in real estate and you gain a passive income, while you also benefit from an appreciating asset. All without the need to take on excessive risks.

However, getting a foothold in the property market is not easy. You need a large deposit and you need to pass mortgage criteria. Even if you’re able to cross those hurdles there’s the huge responsibility of maintaining properties and the risk that your tenant may not pay up. For some, it’s simply too many eggs in one basket. But there’s an easier way.

Real estate crowdfunding allows you to invest in real estate with minimal starting capital, while still enjoying outsize investment returns. You can also more easily diversify your alternative investments in real estate across multiple projects. Let’s take a look.

Top Real Estate Crowdfunding Platforms of 2023

Best For	Platform	Our Rating	Fees	Account minimum	Learn More
Best Overall:		10/10	3%	$1,000	Wealthmigrate.com
Accredited Investors:		9.5/10	0.5% – 1.5%	$5,000	Equitymultiple.com
Non-Accredited Investors (Beginners):		8.5/10	1%	$10	Fundrise.com
Commercial Real Estate:		9.5/10	1% – 1.25%	$5,000	Realtymogul.com
Real Estate and Alternative Investments:		9/10	1% – 2%	$2,500	Yieldstreet.com

Our Picks of Real Estate Crowdfunding Platforms

We’ve compiled the following list of established real estate crowdfunding platforms to get you started. In each review, we outline the cost to investors, the potential returns, and what the unique aspects of each platform are. Investor goals differ and it is up to you to decide which platform – and which opportunities – meet your requirements.

Best Overall:

Wealth Migrate	Year Founded: 2010	Minimum Investment: $1,000
	Primary Location: South Africa	Fees: 3%
	Non-Accredited Investors? Yes	Target Return: 7%-12%
	Country Available: Worldwide (excluding US and UK investors)	Term of Investment: Varied

Wealth Migrate enables investors from around the globe (excluding US and UK investors) to access real-estate investments with yields of 7-12% in the US, UK, and Europe.

They created a fully regulated and compliant real-estate marketplace, to allow an investor to invest as little as $100 in first-world real estate opportunities without any of the hassle, management issues, or foreign bank accounts & complex tax structures.

They offer a fully curated inventory of investment opportunities, such as investments in institutional assets, and other developments. More than $18M USD has been raised on their platform.

Best for Accredited Investors:

EquityMultiple	Year Founded: 2015	Minimum Investment: $5,000
	Primary Location: US	Fees: 0.5% – 1.5%
	Non-Accredited Investors? No	Target Return: 8% – 20%
	Country Available: US Only	Term of Investment: 12+ Months

EquityMultiple is an online marketplace for commercial real estate investing. They provide access to vetted, institutional-quality real estate investments with competitive returns and transparency. Investors can access a variety of asset classes, such as multifamily, office, industrial, retail, self-storage, and hospitality properties. The platform’s proprietary technology and process enables investors to quickly review and evaluate deals, evaluate risk and make informed decisions. EquityMultiple also provides educational resources, such as webinars, podcasts, and articles to help investors get started.

Best for Non-Accredited Investors (Beginners):

Fundrise	Year Founded: 2010	Minimum Investment: $10
	Primary Location: US	Fees: 1%
	Non-Accredited Investors? Yes	Target Return: 8.7 – 12.4%
	Country Available: US Only	Term of Investment: 60+ Months

If you have a long-term outlook and want access to a sophisticated real estate crowdfunding investment platform that covers both residential and commercial properties you might want to look into Fundrise. The platform starts with an investment minimum of USD 500. Also, offers sophisticated investors a more powerful product with more features – starting at a USD 10,000 minimum.

Annual service and management fees come to 1%, while early redemption fees can be as high as 3% – but there are no redemption fees if you hold your investment for the full five years. However, real estate crowdfunding investments are complex – do read the full investment circular to get a full cost picture. As for returns: the platform claims it delivered its more than 130,000 investors returns that averaged  8.7 – 12.4%.

Best for Commercial Real Estate:

RealtyMogul	Year Founded: 2013	Minimum Investment: $5,000
	Primary Location: US	Fees: 1% – 1.5%
	Non-Accredited Investors? Yes	Target Return: 8% – 15%
	Country Available: Worldwide	Term of Investment: 60+ Months

RealtyMogul’s claim to fame is its rigorous underwriting process – the platform states that only one out of every thousand deals it considers are approved. So, in theory, investors should get access to the best opportunities. Access, however, comes at a price – with a USD 5,000 investment minimum. Fees vary depending on the underlying investment but are in the 1% to 1.5% range.

Like all real estate crowdfunding investment platforms, RealtyMogul investments are for the long haul, but the platform offers a buyback program – you can get 100% of your funds back if you’ve held your investment for 3 years or more, but you can’t sell if you’ve invested for less than a year. There is a mix of funds on offer, all with diverse underlying real estate assets. Returns are claimed to be 4.5% or 8% – depending on the fund you choose.

Best for Real Estate and Alternative Investments:

YieldStreet	Year Founded: 2014	Minimum Investment: $2,500
	Primary Location: US	Fees: 1%
	Non-Accredited Investors? No	Target Return: 3% – 18%
	Country Available: US Only	Term of Investment: 3-48 Months

YieldStreet is an online investment platform that provides investors with access to alternative asset classes such as real estate, legal finance, marine finance, and art finance. The platform is registered with the SEC and FINRA, providing investors with more transparency and security.

Offers a range of products and services, including portfolio management, risk management, and asset management. The platform also provides access to vetted and pre–vetted private investments, allowing investors to diversify their portfolios and access investments that are not typically available to the general public.

YieldStreet.com makes investing accessible, offering an intuitive platform suitable for novice and experienced investors. The platform provides investors with various tools and resources, such as risk analysis, portfolio management, due diligence, and more. Additionally, provides educational resources to help investors stay up–to–date with the latest industry news and trends. Overall, YieldStreet is an excellent option for investors looking to diversify their portfolios and access alternative asset classes.

Other Great Real Estate Crowdfunding Platforms:

Private Wealth Global	Year Founded: 2019	Minimum Investment: $50,000
	Primary Location: UK	Fees: 2% upfront fee
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: Worldwide (excluding US and Canada)	Term of Investment: Varied

Private Wealth Global gives accredited investors worldwide (excluding investors from the USA and Canada) access to exclusive, curated off-shore real estate investment opportunities from $50,000 USD.

Their online wallet system was designed with the aim of removing all hassle from investors and allowing them to withdraw funds easily or re-invest to take advantage of compounding returns.

InstaLend	Year Founded: 2015	Minimum Investment: $5,000
	Primary Location: US	Fees: 0%
	Non-Accredited Investors? No	Target Return: 9% – 12%
	Country Available: US Only	Term of Investment: 6+ Months

InstaLend empowers real estate operators to get access to capital at lower rates in far less time than they would with alternative lenders. With its competitive rates and diverse loan programs, InstaLend meets all your short-term and long-term investment needs.

DiversyFund	Year Founded: 2016	Minimum Investment: $500
	Primary Location: US	Fees: 2%
	Non-Accredited Investors? Yes	Target Return: Varied (avg. 17.6%)
	Country Available: US Only	Term of Investment: Varied

Irrespective of the economic cycle, people will always require a roof over their heads. Multifamily properties, in other words, apartment blocks, can be viewed as a relatively safe investment. DiversyFund focuses on multifamily properties and does so in a unique way: DiversyFund buys existing properties and renovating to increase net rental income.

You need USD 500 to get started, and note that you need to commit for at least 5 years. The platform itself doesn’t charge any fees. It’s a simple investment prospect: you don’t get to choose what you invest in, but you get access to a comprehensive dashboard that outlines how your investment is performing. The platform claims returns of 17.6%. DiversyFund is fully SEC qualified, which promises extra oversight for investors.

CrowdStreet	Year Founded: 2013	Minimum Investment: $25,000
	Primary Location: US	Fees: 0.50% – 2.5%
	Non-Accredited Investors? No	Target Return: 9% – 24%
	Country Available: Worldwide	Term of Investment: 36+ Months

CrowdStreet offers its investors access to institution-quality commercial real estate crowdfunding investment opportunities. You have a choice of investing in a specific project, or you can diversify your real state crowdfunding investment by choosing one of CrowdStreet’s funds. Every project has a detailed webinar so you can evaluate whether a project is a good fit for your investment strategy.

Fees are 0.50% to 2.5% though this can vary for individual development projects. As for performance, the company claims an IRR of 26.3% across the USD 1.15bn it’s raised. Note that you need to meet guidelines for an accredited investor to invest with CrowdStreet. Also, note the high investment minimum – USD 25,000.

BulkEstate	Year Founded: 2016	Minimum Investment: 50 EUR
	Primary Location: Latvia	Fees: 0%
	Non-Accredited Investors? No	Target Return: Varied (avg. 14.1%)
	Country Available: Latvia	Term of Investment: 12+ Months

With by far the lowest minimum investment amount in our list, Bulkestate allows real estate crowdfunding investors to participate in residential real estate projects across Latvia from as little as EUR 50. What’s more, investors pay no fees for joining the platform and investing – or for withdrawing investments.

Returns are generally above 10%, with some projects promising up to 15%. Note that you can’t withdraw your investment before the repayment date, which is typically a year or two from the initial investment. Bulkestate has a long history of completed projects and is a member of the European Crowdfunding Network.

CrowdEstate	Year Founded: 2014	Minimum Investment: 100 EUR
	Primary Location: Estonia	Fees: 2%
	Non-Accredited Investors? Yes	Target Return: 3% – 9%
	Country Available: Worldwide with Exceptions	Term of Investment: Varied

Another platform with low investment minimums. Crowdestate offers investors the opportunity to participate in projects across – interestingly – Italy, Latvia, and Estonia. There are no investment fees – unless your investment exceeds target rates, in which case Crowdestate takes a 20% cut of the excess returns.

The platform has a wide range of residential projects listed with terms around a year or less. The expected rate of return is typically around 10% to 13% p.a. Uniquely, Crowdestate offers a secondary market for investors so you can exit your investment – or indeed jump in on existing investments.

PeerStreet	Year Founded: 2013	Minimum Investment: $1,000
	Primary Location: US	Fees: 0.25%
	Non-Accredited Investors? No	Target Return: Varied
	Country Available: US Only	Term of Investment: 6-24 Months

PeerStreet is a real estate investing platform that makes it easy for investors to access high–yield, private real estate loans. The platform provides online access to a range of real estate loan investments that are sourced from experienced local lenders, with loan amounts ranging from $50,000 to $2 million.

The platform offers an intuitive dashboard to help investors make informed decisions about their investments. The dashboard provides detailed information about the loan originator, loan purpose, loan maturity, and loan performance. Investors can also review the loan‘s loan–to–value ratio, debt–service coverage ratio, and other key metrics.

ArrivedHomes	Year Founded: 2019	Minimum Investment: $100
	Primary Location: US	Fees: 1%
	Non-Accredited Investors? Yes	Target Return: 6% – 15%
	Country Available: US Only	Term of Investment: 60+ Months

ArrivedHomes is the new real estate crowdfunding player; this platform lets investors earn quarterly dividends from residential real estate properties. ArrivedHomes is perfect for beginners as it does not require accreditation and has a low investing minimum of $100.

The company works only with residential real estate; therefore, it is unsuitable for those looking for commercial real estate investments.

CityVest	Year Founded: 2014	Minimum Investment: $25,000
	Primary Location: US	Fees: 5% – 7%
	Non-Accredited Investors? No	Target Return: 10% – 25%
	Country Available: Worldwide	Term of Investment: Varied

CityVest is a crowdfunding platform that connects investors with real estate investment opportunities. The platform focuses on providing investors with access to institutional-quality real estate deals that were previously only available to large financial institutions and accredited investors.

The platform allows investors to browse a variety of real estate investments, including commercial properties, multifamily apartments, and development projects. Each investment opportunity is thoroughly vetted and analyzed by CityVest’s team of experienced real estate professionals, and investors can access detailed information on each deal, including financial projections and investment documents.

Final Verdict:

One way to mitigate risk is, of course, to choose your investments wisely. Real estate has a few unique factors. For example, how cyclical is the property you are considering? An economic downturn won’t affect prime commercial real estate as much as it would a hotel, for example.

Also, consider the execution risk. Are we simply talking about refinancing an existing property, or is the real estate project to be built from scratch? You should also consider how much of the investment return will come from a final sale. There is less risk involved if your investment delivers a great income stream from the very beginning.

Finally, the underlying crowdfunding platform also matters. Because so many real estate crowdfunding platforms are relatively new to the market it can be difficult to obtain independent insight into the pros and cons of each platform.

Frequently Asked Questions:

The post Best Real Estate Crowdfunding Platforms in 2023 appeared first on CrowdFunding.Guide.

With over 30 years of experience in the corporate and securities field, Sara Hanks has led a career dominated by several reputable establishments and influential projects, including the bipartisan Congressional Oversight Panel, the Securities and Exchange Commission (SEC), the Partnership Council of the Clifford Chance law firm, and the Troubled Asset Relief Program (TARP). She is the CEO and co-founder of CrowdCheck, a leading legal firm specializing in equity crowdfunding, and a partner of CrowdFunding.Guide.

Interview Date: 29th January 2021

Having been involved in everything from advising on capital markets in Africa, Asia, Europe, and Latin America to leading the team that drafted new regulations on the capital raising process and the way non-US companies access US markets, Sara Hanks discusses the topics of law, compliance, and due diligence with impressive insight, humor, and ease. 

CFG has partnered with CrowdCheck to bring greater peace of mind to our investors and entrepreneurs. CrowdCheck aims to decrease the risk of potential fraud and non-compliance complications by helping those involved with online capital formation navigate the disclosure, due diligence, and compliance aspects. As CEO and co-founder of CrowdCheck, Sara recently told us more about how CrowdCheck was first conceived over cocktails. She also shared her thoughts on some of the most recent changes in the regulations regarding capital financing.

“After the Congressional Oversight Panel stood down, I became really interested in crowdfunding because of various bills going through Congress at the time. Over cocktails, a couple of friends and I realized there is a need for a trust layer that doesn’t say whether something is a good investment or not, but instead tells you if it’s legal for them to do what they’re doing.”

Inexperienced investors investing in inexperienced small companies over the internet: what could go wrong with that?

The first plan for CrowdCheck was then drafted on the back of a cocktail napkin and it started operating as the Jumpstart Our Business Startups (JOBS) Act came into effect in 2012. From there, CrowdCheck progressed from diligence to disclosure. Having been founded by securities lawyers, they still received many securities-related questions, which prompted the creation of CrowdCheck Law. Ultimately, CrowdCheck and CrowdCheck Law together provide a comprehensive range of legal, compliance, disclosure, diligence, and filing services for every entity involved in the crowdfunding process in the US.

Outlook on recent regulation changes in US

The SEC has recently announced upcoming changes to the exempt offering ecosystem in an attempt to improve access to capital, offer investors more opportunities, and maintain investor protection criteria. Among these changes are an increase in Reg CF funding to $5M, a raise of the Reg D maximum funding cap to $10M, and an increase of Reg A+, Tier II offerings to $75M. Most important of these is the change to the REg CF limits. When these changes come into effect, entrepreneurs will be able to raise up to $5M from unaccredited investors in online public offerings, way above the current limit of $1.07M.

Regarding these changes, Sara doesn’t expect too many ripple effects in the online capital formation landscape. “A lot of the proponents for the $5M limit said it would attract more and better companies and I guess we’ll see. The thing is, if you’re a tech company in Silicon Valley and you’re a second-time around founder who knows Peter Thiel and all of those guys, you’re not going to come to the crowd anyway. The people who come to the crowd are the ones who the crowd understands: the distillers, the coffee shops.”

Since the majority of startups that failed to raise even a quarter million USD through Reg CF campaigns last year, we wondered whether the raised limit on Reg CF offerings to $5M is not only ambitious but perhaps not entirely realistic. Sara agrees, adding that “there aren’t really enough investors to meet this demand and people may be disappointed, but I welcome being wrong in my predictions.”

…there aren’t really enough investors to meet this demand

According to her, the overall scope of rule changes was disappointing. “Instead of making the huge sweeping changes they were talking about at first, they opted for the low-hanging fruit,” she says. Something she regards as a more beneficial change, for example, would have been to allow more people to invest in funds that invest in a diversified portfolio of startups.

Why startups should aim for accredited investors

We asked Sara which regulation is the easier option for startups in terms of compliance. Sara says she thinks most equity crowdfunding startups will continue to prefer Reg D 506(c).

Rather than going for a thousand people who invest a few hundred each, it’s a much easier lift to get people who write bigger checks.

“So reaching out to accredited investors is always going to be a more attractive thing, which makes regulation D506(c) a very appropriate way of raising funds”, she explains. “The idea that there are some people who do not need the protection of registration, review, or filing with the SEC is a sound one; whether we’ve drawn the line in the right place, I don’t know.” 

The definition of accredited investors

In addition to the funding limit changes made by the SEC, another change was the definition of an accredited investor. While each country has a different definition, most rely on that used in the US. According to the SEC, an accredited investor is an individual with an annual income above $200k (or $300K together with a spouse), or a net worth above $1M (jointly with a spouse, excluding the value of one’s primary residence), but some additional regulations apply.

When asked about the changes regarding the definition of an accredited investor, Sara says that it’s a start. As something that was supposed to be a proxy for someone who didn’t need protection, this definition was initially based on the availability of funds. According to her, it is a logical extension to that concept that a person has done enough research on securities to make up their own mind. “The SEC has left open the possibility of extending the definition even more via an easier route and one of the ways I think we’ll see that happen is that someone will develop a certificate of soundness in investing in early-stage companies,” she explains, referencing private entities like the Crowdfunding Professional Association (CfPA). “Adding something like this to the definition would get us back to the original concept, which is someone who knows what they’re doing.”

The year ahead in the crowdfunding landscape

The potential compliance pitfalls for entrepreneurs moving forward aren’t related to the regulation changes, says Sara. Her view is that the biggest compliance
challenge for entrepreneurs is being cautious of the statements they make.

Entrepreneurs are natural optimists who believe in their own ideas, which gives rise to downplaying risks and liabilities. Taking that mindset and making sure they say things that are objectively true is the real challenge.

About CFG and CrowdCheck

CFG collaborates with business entities to offer value to angel investors as well as startup founders. As one of our partners, CrowdCheck helps to ensure a safer, compliant investing process for both our entrepreneurs and investors. We are proud to have CrowdCheck as a partner and value their contributions in the areas of disclosure, due diligence, and compliance. Read more about CFG partnerships here. 

The post Sara Hanks: Bringing compliance and diligence to online capital-raising appeared first on CrowdFunding.Guide.

Having provided seed funding to over 20 technology startups as an investor, delivered over seven million sales leads as an entrepreneur, and generated more than $500M in sales as a power affiliate, Dom Einhorn has an extensive portfolio of success stories and startup exits. To this French-American angel investor, investment goes beyond simply providing funding. 

Interview Date: 11th January 2021

Dom first entered the entrepreneurial landscape in 1993 when it wasn’t as substantial as it is now. Having moved from his native Alsace to the US, he began as most young entrepreneurs do – by soliciting investors. Halfway through that journey, in the mid-2000s, he had heard and made so many pitches towards angel investors that his perception of investment shifted. “I started to understand the psychology of the angel investor a lot better, thinking about what’s in it for them, versus what’s in it for me,” he explains. That was when he started dabbling in angel investments in the US and Western Europe.

Now, several years and investments later, Dom has a particular interest in the areas of fintech, digital media, augmented reality, artificial intelligence, ed-tech, health tech, and food tech. He references cleantech as an ideal example of a symbiotic dynamic between entrepreneur and investor – where the motivation isn’t necessarily that of financial gain. “It may be, initially,” he says, “but in addition to that, we’re all working towards coming up with solutions that make the world a better place to live in.”

When asked about the allure of technology startups, Dom elaborates, “what really fascinates me is the amazing leverage that technology allows towards the growth and deployment of certain business models. It is that leverage that ultimately generates the types of returns that investors are interested in seeing long-term.”

Shifting the focus towards connection and communication

As someone who speaks six languages to break down language barriers, Dom applies the same philosophy to business by placing emphasis on highly effective communication. “Whether you communicate with an investor or a client, you have to be able to listen. You also need to analyze their persona because a one-size-fits-all approach does not work. Without listening, you can’t pick up on the signals the person you’re speaking to is more than willing to share with you as to what they’re interested in, what they’re inclined to do, what’s turning them on or off.” According to him, the ability to instantly adjust a pitch towards this inclination is what keeps investors engaged. 

Regarding the things Dom looks for in a startup when evaluating it for potential investment, he essentially seeks two things: trust and the possibility of a hypothetical fishing trip. “Today, as an investor, I’m more interested in working with people I know I can get along with, as we all do. One of the questions I ask myself is, ‘would I want to go fishing with these guys?’ or something along those lines.” To him, the human element comes into the investor-entrepreneur dynamic early on and is predominant throughout. As a result, he is predisposed to real, authentic relationships and trust in the individual – regardless of whether that necessarily results in money.

In some cases, I’ve backed people again, even after failure, because I trust the individual more so than the process or the potential of the venture itself.

While this approach helps Dom establish long-lasting relationships with entrepreneurs, it also helps him identify red flags that make him walk away from a potential investment. Among these include overconfidence in the ability to achieve the objective, exaggerated financial forecasting, and underestimating the journey to reaching the set goals. “If I see a startup stumble on their customer acquisition cost, I usually interject quickly. If I see push back on that, then I hit the exit button.”

UNIQORN: Going beyond funding to create a digital startup ecosystem

In 2018, Dom returned to France after 25 years in the US. His next mission: building the world’s largest rural incubator-accelerator. He settled in Sarlat-la-Canéda and established UNIQORN with the goal of providing entrepreneurs and their families an improved quality of life while helping them advance their technology startups. 

During his 25 years in Los Angeles, Dom would often spend six hours a day in traffic, which led to him exploring a better way to do business. “We realized that entrepreneurs and investors would be willing to relocate if they’re afforded the opportunities to communicate the same way and actually lead a better life – especially if they have a young family. Fortunately, there have been a number of macroeconomic developments that have allowed startups to decentralize and also enjoy a better lifestyle away from the noise, pollution, crowds, and cities. ”

UNIQORN gives entrepreneurs access to a complete ecosystem necessary for success: proven funding resources, superior legal and accounting representation, access to exclusive business incentives, and a dedicated sales and marketing accelerator. Aside from the massive ecosystem to fast-track startups to success, UNIQORN also offers entrepreneurs the chance to enjoy activities like canoeing, rock climbing, flyfishing, visiting prehistoric caves, deep-sea fishing, and more. All this while living in a developed country surrounded by nature. 

UNIQORN enables us to offer startups a turnkey solution where they do what they do best and we take care of the rest – accounting, accommodation, legal, taxes, engineers, designers, marketers, and more.

From incubator-accelerator to tech conference

Set to take place in Sarlat on 1 – 3 October 2021, the Startup Supercup is a leading tech conference that Dom founded as a natural progression after UNIQORN. It will showcase what the UNIQORN startups have achieved as well as unite 1,000 carefully vetted angel investors, VCs, private equity funds, technology startups, and leading media outlets from around the world. 

“This conference will show people why we believe France is one of the best places to launch a startup in terms of the ecosystem that’s available, such as incentives for research and development and grants for startups,” Dom explains.

On challenges for investors and startups

While UNIQORN makes it easier for investors to find early-stage startups outside their network or geographical location, this is still a challenge that other investors face. “When I look at the ecosystem between startups and investors, it’s a chicken and egg story – some say the chicken comes first and others the egg. Really, it’s all about a balance between investors willing to put cold hard cash into promising startups and startups that have been vetted.”

According to Dom, the easy accessibility of starting a business has led to greater risk for investors. This makes it harder to identify entrepreneurs with true grit versus those who throw in the towel when things become challenging, making it more critical to leverage the tools and platforms available that mitigate that risk.

On the other hand, it also contributes to a more competitive landscape for startups seeking to raise money, resulting in the rise of alternative methods like equity crowdfunding, of which Dom is a strong supporter. For startups that struggle to reach investors and raise capital, Dom advises that they train themselves to become better communicators and learn the skill of quickly and efficiently encapsulating what they do – the elevator pitch. 

About CFG and UNIQORN

CFG and UNIQORN have agreed to collaborate by sharing investment opportunities in the startups they respectively support. This exciting new partnership with Dom Einhorn and his teams at Uniqorn and at the Startup Supercup will allow us to jointly bring huge opportunities to the startups we support and open new investment opportunities to our respective investor communities.

Follow this link for more information on UNIQORN or find out more about the Startup Supercup here.

Read more about CFG partnerships here.

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Blake Janover founded Janover Ventures when he noticed that many borrowers in the multifamily and commercial real estate spaces were not aware of all of the lending options available to them, which could be limiting their financial growth. He believed he had a solution.

Interview Date: 9th November 2021

To address this issue, Blake and his team started by creating a network of websites to reach potential borrowers. They purchased key domain names in the multifamily real estate space and leveraged search engine optimization to turn them into highly trafficked sites. These sites provide free education to borrowers about capital loans and all things related to commercial and multifamily lending. They also utilize Janover Ventures’ Intelligent Router technology to process online loan applications from prospective borrowers. When a potential borrower files an inquiry through one of Janover’s platforms, the Intelligent Router will connect him with the lender that can provide the right loan at the best rate. This technology is designed with both borrowers and lenders in mind. It helps real estate borrowers find the most appropriate loans for them, but it also makes it easier for large lenders to process these small loans more efficiently.

So far, Janover Ventures has seen strong growth in 2020. In Q1 alone, they funded over $80 million in loans through their network of websites. The company is taking steps to expand its technology as well. They are currently developing their Intelligent Qualifier and Intelligent Lending Platform technologies. These are slated to debut in late 2020. The Intelligent Qualifier is a user interface that relies on algorithms to streamline the application process for borrowers.

Since launching in 2018, Janover Ventures has seen a steady upward trajectory in revenue, web traffic, and loans processed. We spoke with founder Blake Janover about the challenges and successes he’s experienced along the way, as well as what to expect for the future.

A Natural Entrepreneur

Blake Janover has always been passionate about entrepreneurship. “Entrepreneurship is probably in my DNA, generationally even,” he says. “I started at a very young age, the youngest age you can.” When he was 19, Janover began working as a ‘quant’, writing securities trading algorithms based on mathematical and statistical analysis. Soon afterward, he ended up moving into the world of real estate finance and running his own company. Never comfortable sticking to the status quo, Janover always focused on pushing the envelope with cutting edge technology.

Like many entrepreneurs, Janover changed course after the recession hit in 2008. He moved to the Dominican Republic, where he continued working as an entrepreneur. In addition to staying involved in the real estate industry, he founded a vitamin and supplement company. He also started a company that performed business process outsourcing. “We were doing all kinds of stuff for all kinds of companies, like customer service and sales and things like that,” he says.

It’s this curiosity and willingness to try new things that led him to Janover Ventures. While still in the Dominican Republic, Janover was discussing multi-family real estate with a friend. A quick online search showed that there wasn’t much information available about loans for multi-family properties. He quickly bought a domain and built a website, and soon that site was ranking on Google – indicating plenty of untapped potential.

He then decided to move back to Miami to scale his real estate business. He continued to work on projects in many different aspects of the real estate industry. In 2018, he formally founded Janover Ventures. “I took all these disparate things I was working on and rolled them into one place where we would focus on technology and reducing frictions in commercial property financing,” he says. “We’ve done some pretty cool things since we’ve started.”

Making Multi-Family Lending Accessible

What is now Janover Ventures initially started as a side project – wanting to make multi-family lending accessible to the real estate investors who need it the most. Janover initially wanted to provide education on multi-family loans. “I could build a super-helpful website, make it really well-organized and easy to understand because these are complicated topics. I did not expect to be number one on Google,” he says. “Traffic was instantaneous. People started emailing, so I made it easier to apply online… and then I started getting a bunch of applications.”

To scale the website to the advanced lending platform that it is now, Janover started by building a strong data infrastructure. Then, the company took steps to automate their lending process. By automating document requests, email introductions, and other key parts of the loan application process, they were able to reduce friction in the borrowing process. “We started scoring opportunities based on a series of data-driven factors,” he says. “Then based on the scoring would be to whom we distribute opportunities to internally and what lenders we match people with externally.”

Through this process, Janover and his team have been able to transform their websites into fully realized platforms that benefit both lenders and borrowers. “In late 2020, we hit the threshold of one million new visitors on Google, with a majority of organic traffic,” says Janover.

New Challenges: Growing Janover Ventures

When reflecting on his biggest challenges as an entrepreneur, Janover focuses on himself. “My biggest challenge is deeply understanding myself and what I’m doing, and then making good decisions by soliciting the feedback of a lot of people.” By committing to taking more calculated risks, Janover has been able to take important leaps forward, both in business and in life.

As the company is growing so quickly, there are many technical challenges ahead. Janover cites raising money and expanding his team to be two of the biggest challenges in the short term. “We’ve got to hire amazing engineers, like full stack developer rock stars, so finding them, cultivating them, integrating them into the team, may be challenging,” he says. “We have to hire more content folks so we can expand, so we can go from a million people a year to 10 million people a year.”

With the company growing so fast, Janover is currently focused on continuing to scale. They are currently in the midst of a regulation crowdfunding campaign on StartEngine.

The post Janover Ventures: Online Real-Estate Financing Applications at Scale appeared first on CrowdFunding.Guide.

Investing in early-stage startups used to be only for the very rich and well connected. All that has changed after the JOBS Act, which caused the US SEC to ease its regulations on startup investing. Many exciting, innovative startups now accept investments from anyone. You don’t have to risk a big amount of money – the minimum investment in many of these startups is no more than several hundred USD, sometimes only $100.
But before considering any such investment, it is worth considering the benefits as well as the risks involved. First, let’s look at some of the reasons investing in early-stage startups can be so beneficial. Next, we’ll consider some of the challenges and risks. Finally, we will discuss the ways in which anyone can improve their ability to find promising startups to invest in, and our own method to screen startups efficiently.

The Unique Benefits of Investing in Early-Stage Startups

The rich and well connected have been doing angel investing for years, and the reasons for it are not just the potential outsized returns. Startups are exciting, innovative, and inspiring by their very nature. Angel investing can and should be interesting and enjoyable.

The chance to receive disproportionately large returns on investment is what makes Angel investing in startups so exceptional. Angel investing is very risky, unpredictable, and mostly illiquid – but the returns can be accordingly high. The best startups give patient investors amazing returns, in multiples of hundreds and even thousands. Most tech giants that are worth billions today were once startups and turned those that invested in them in their early days into very wealthy people.

The Truth About Finding the Next Unicorn to Invest In

So how can one identify which startup will be the next Google, or Facebook or Tesla? There are many startups out there. Many of them will fail and only a very few will bring their investors huge returns. How can one pick out the winning startups early on? How to know who will be the next “unicorn”, or billion-dollar startup?

Here’s the truth: Nobody can know for sure. There are simply too many factors and variables that determine the success of a startup to make credible predictions with certainty. Even after spending a lot of resources on research and due-diligence, many professional venture capital funds end up with low success rates. The few professional investors that have consistent success in identifying winning startups early on, only share the investment opportunities they identify with very few, high-end investors. They also always have “skin in the game”, meaning that they themselves invest in the startups they believe in.

Warning: Be very cautious before trusting your money with anyone claiming they can tell you which startup will turn into the next billion-dollar unicorn, especially if they are asking you to pay them in advance for that information. Never let yourself be fooled by get-rich-quick scams. Instead, be realistic in your expectations, educate yourself, and make sure you understand the risks involved. We recommend that you diversify your portfolio to reduce your risk and that you always consult a professional investment advisor that knows your personal financial situation.

The Keys to Success in Investments in Early-Stage Startups

For most investors in early-stage startups, it would be realistic to acknowledge that accurately predicting which startup will make the whole way from a team of 3-4 people to a billion-dollar worth company is very hard to do. But even investors without any prior experience with startups or angel investing can improve their chances of success with the right strategy and with a methodical approach.

The idea is simple and definitely achievable – narrow down your options and focus your selection process to find the startups that have a higher chance to succeed. With a few basic principals, you can steer away from poorly managed or completely unproven startups. You can find the startups that show ability and strength early on, by checking on their proven achievements. After you’ve done your initial screening, look deeper into the ones that pass. Then you can further improve your odds by diversifying – spread your available investment capital across several startups, in smaller amounts.

The Five Startup Strength Indicators

While we do not claim to know who will be the next Google or Tesla, at CrowdFunding.Guide we believe that there are some clues that can help in identifying who are the better startups early on, and in screening out the ones that are less prone to success. We do that by looking for The Five Startup Strength Indicators. These are the key achievements and strengths that we expect to find in the best startups early on:

• Successful founder(s).
• Notable investors.
• Proprietary IP / patents.
• Notable customers or partners.
• Revenues and sales.

The Five Startup Success Indicators are simple, factual, and easily detectable characteristics of startups that can serve as a validation to the startups’ quality and potential, and indicate the possibility of long-term success. We believe that investors should see a minimum of at least two impressive Strength Indicators in a startup in equity crowdfunding, before even considering investing in it.

To be clear, The Five Startup Strength Indicators are a method for screening and narrowing down your search for investible startups. It shouldn’t stop there. Once a startup qualifies with at least one or two impressive achievements out of the Five Startup Success Indicators, there should be a further level of inspection, learning, and due diligence conducted before deciding to invest.

Summary and Key Takeaways: 

• Angel investing is no longer an investment class reserved for the wealthy and affluent – virtually anyone can now invest through equity crowdfunding.

• Investing in early-stage startups can and should be enjoyable, and the benefits are well beyond the mere financials.

• Nevertheless, the main appeal of angel investing is potentially outsized returns.

• Investing in each individual startup is very risky. There are many startups, and most of them fail.

• Identifying future unicorns is very difficult to do, but you can and should improve your chances of success by being methodical.

• The keys to successful investing in early-stage startups are:

1. Use objective criteria to screen startup quickly and efficiently, to narrow down your selection and focus your efforts and attention.

2. Diversify your investments in several startups to increase your chances of choosing a winner.

• The Five Startup Success Indicators are our set of screening criteria for early-stage startups.

• If a startup passes the initial screening by demonstrating ample achievements in at least two of the Five Startup Strength Indicators, a deeper level of inspection and due diligence should take place, before deciding on making an investment.

The post How to Select the Best Startups to Invest In appeared first on CrowdFunding.Guide.

Startups get a 13.3% discount on success fees on Wefunder by using this link:

We had a great time hosting Jonny Price, Director of Fundraising from Wefunder. We asked him to tell us a bit about his personal journey in the equity crowdfunding, about Wefunder’s special appeal to investors and founders, and about Wefunder’s current initiatives during the Covid19 crisis.

It’s great to have you here Jonny. Before we dive into your activities at Wefunder I’d like to hear about your personal journey with equity crowdfunding.

So I’m from the U.K. originally, and started my career in management consulting over there with a firm called Oliver Wyman, did that for a few years and then came to volunteer at a nonprofit called Kiva. They are a non-profit crowdfunding micro lending platform. For example, they would be giving hundred dollar loans to a farmer in Kenya, that are being crowdfunded by foreign lenders lending twenty-five dollars each. I volunteered there for a few months and then got married to an American girl. So that brought me out to America full time in 2011. I ended up founding and leading the Kiva Zip pilot program, and over the next seven years  we supported founders in Kenya and the US with about 25M$ and 0% interest loans. And then in early 2018, there was a CEO change at Kiva, which caused me to leave and come to Wefunder where I lead our fundraising team.

So you’ve been with Wefunder quite from the start, not long after the Jobs Act was approved in 2016.

Yeah, well Wefunder was actually founded back in 2012 and our founders helped to get the initial Jobs Act through Congress, which was in 2012. Then we went through Y Combinator in 2013. And then it wasn’t until May 2016 when regulation crowdfunding, which is the crowdfunding where anyone can invest in startups, became legal. And Wefunder has been the leading platform in the four years or so since May 2016.

Ok so that brings us to Wefunder. What makes you stand out as an equity crowdfunding platform? What is your unique offering for investors?

Yeah, that’s a great question. I’d say kind of two things. Firstly, the startups fundraising on the platform, and we definitely stack up well against our competitors. We have a number of Y Combinator alumni that raise money and we fund, for example. It’s nice that we have that network.  We have four unicorn’s in our portfolio. We’ve also made some really exciting product changes recently that are going to significantly increase the caliber of companies that are turning to Wefunder, so investors already have a lot to choose from on our platform and that is going to increase even more.

The second advantage we have is our focus on our community of investors and founders. We are very, very committed to trying to cultivate community connections and add value. We think angel investing is really cool, and if it’s just about the money then we’re kind of missing out on something. So the tools that we’re building give investors space to look beyond just the financial investment, such as online events, perks and more. That’s kind of very central to what we’re about as a company.

So I’d say the kind of investors you mostly attract to Wefunder are not just looking to park their money somewhere, but are interested in creating a real connection to the startups they invest in, to the story, and to the founders, and want to follow up and help them succeed.

Exactly. That’s the aim here, is that, you know, if an angel investor invests in a startup they pull out their Rolodex, they’re trying to help that startup because if they can help them to grow, so that they’re investments are going to grow in value. We are encouraging investors to think about that and try to add value beyond that financial investment.

We also believe investors invest in domains they are passionate about. Ideally, you know, if you’re a scientist say in a field like oncology, and then there’s a cancer therapy startup that’s fundraising on Wefunder. You might invest in that startup because that’s your domain. You’re passionate about that. And also, then you’re probably more helpful to that founder because you have expertise in that name and you have an outlet.

“I like to invest in projects that help people. If I make money that is great as well” — a Wefunder investor’s note to a founder they just invested in. This is what we’re about.

— Wefunder (@Wefunder) April 30, 2020

So that brings me to the other question, which is a mirror question. What kind of entrepreneurs come to Wefunder? I mean, I know you are sector agnostic, so you have startups from different domains. But is there something in the attitude or the mentality of the founders that you encourage, or are there specific sectors where you see have more startups than others?

If you look at, for example, the percentage of venture capital that’s going to female led businesses right now or minority led businesses near us, or if you look at the percentage of venture capital that’s not going to California, New York and Massachusetts, 77% of all the VC investments in the US is in these three states. So I think if you’re if you’re a woman of color in Cleveland, Ohio, it might be challenging to access capital. And so we provide a platform that makes it easier for you to raise money from other women of color in Cleveland or get in front of our investor base.

And then the second piece is then startups that maybe the consumer facing or maybe they just would really get a lot of value from having 300 people investing them and bring that networks. So I do think that tends to be more of a fit for consumer facing companies. Such is Lost Spirit Distillery from L.A., that even in March 2020, raised a million and a half in a week, mostly from their fans and customers. Some companies are really exciting from a mission perspective, and are really about community building and enabling ordinary people and community to invest in them as well as rich people. Like Legion M, the most successful fundraising startup on Wefunder. They’ve raised 9M$ from twenty seven thousand people. Their whole ethos as a company is to democratize Hollywood. So just as we’re democratizing investing, they set out to democratize Hollywood. They’re investing in movies and they’re an entertainment company and they’re saying, why should you have to be a millionaire to be a Hollywood producer?

Obviously, we also do a lot of tech startups and especially like consumer facing tech startups like Cariboo is an example of a consumer facing app that raised millions of dollars with us last year. Everydae is a consumer facing tech company that just raised 1.2 million.

Do you have a lot of startups that have innovative technology on Wefunder?

Yeah, absolutely. So we have right now there’s a few biotech companies that are fundraising, for example, Beta Bionics is one of my favorite examples, that developed an artificial pancreas to treat people with diabetes. So they raised a million dollars on Wefunder a few years ago and they just closed a 63M$ VC series.

We’re in the midst of a crisis due to Covid19. A lot of businesses are under a lot of trouble trying to figure out what, you know, what’s life going to look like and what’s business going to look like after the crisis. We’ve discussed this on our previous chat, and I know that Wefunder is actually doing well in the past few months. I also know that you’ve been doing a lot to support entrepreneurs and take your own initiatives during this crisis.

Yes. So we launched a couple of programs, like low interest loans for small conventional businesses. We also launched our own accelerator of startups tackling the virus. We chose 12 out of 2,500 applications and we’re very, very excited about that.

Now over 2,000 applications to our Fight the Virus Accelerator. Truly inspiring to see the passion, creativity and brilliance of founders stepping up to beat this crisis. Still 174 minutes to apply: https://t.co/tm3Po9syly

— Wefunder (@Wefunder) April 4, 2020

Have you allowed your investors to invest in that accelerator in some way?

We have a dedicated fund for the accelerator which will be open for accredited investors on the platform. Potentially, some of the companies in the accelerator in the future might also launch a crowdfunding campaign on Wefunder and people will be able to invest in those companies individually. But for the moment, we’re focusing on accelerating that to fight the virus, either directly, or indirectly by providing solutions that are needed because of the virus, such as online learning.

Great. Finally, can you tell about any exciting startups that are fundraising right now on Wefunder?

I am not allowed to recommend individual companies according to the FINRA and SEC regulations, but I can say that we have a lot of great startups fundraising right now and I would encourage people to go to Wefunder’s website and browse through the companies there. You can search for sectors that you’re interested in or filter by companies that have raised the most money, and more.

Startups get a 13.3% discount on success fees on Wefunder by using this link:

The post Jonny Price from Wefunder on bringing value in equity crowdfunding appeared first on CrowdFunding.Guide.

Upshift changes the way cars are used in urban life by providing a fractional car leasing service. They are live in San-Francisco and are backed by prominent investors including MINI (BMW) and Urban Us.

Interview Date: 9th June 2020

As the CEO and Founder of Upshift, Ezra Goldman is no stranger to innovative mobility solutions. Leading up to his current position, he co-founded a dockless bike share in 1999 and also helped design and build an EV scooter for shared use at MIT Media Lab in 2006. For him, a focus on the future is crucial to developing a successful product or service. 

“I have a forward-thinking mindset that focuses on the future and, more specifically, the future of shared mobility. Beyond that, my core background seeks to answer the question of how to develop innovative new products and services that people actually want,” he says.

Goldman founded Upshift based on a need he experienced himself. “It’s very important for me to connect with nature on a regular basis. But, having lived in cities for 20 years, I found you really need a car to be able to do that. I didn’t want to own a car because of all the frustrations. You have to deal with parking, parking tickets, insurance, maintenance, and all the rest of it.”

A unique alternative to leasing a car

There are various car leasing services available in the US, but Upshift is unique in that it solves for a specific need of many urban dwellers, who want the convenience of a car at their disposal although they only use it a few days a month.
“Essentially, we allow our members to eliminate their need of a car by allowing them part time access to a car as a lifestyle choice. Members can order a car online, it is delivered within 30 minutes, and they only use it for a few hours or days – completely eliminating frustrations involving insurance, maintenance, cleaning, and refueling, and parking,” explains Goldman.

It started as a way to give people convenience, freedom, and flexibility. But another focus is also to improve our cities and make them more livable for people while reducing carbon emissions. 

“Back in 2018, we noticed a lot of members were in need of a low mileage lease alternative. So we started running fractional car subscriptions, with a unique model that is eliminating the number of underutilized cars in our city streets.”

We asked Goldman about his greatest challenges so far. 
“Seeing as this is an entirely new service, we had to create custom operations in terms of storing, delivering, and picking up cars. We also had to figure out how to effectively manage the financial side, such as how to structure insurance. But the great thing here is that we get to create the kind of processes that optimize and streamline the entire operation.”

“A two car garage in your pocket”

Fractional car leasing isn’t the only thing Upshift focuses on. Goldman adds that “if you look at anything in the automotive industry, whether it’s buying, renting, or sharing a car, you’ll see that customer service tends to be something people complain about a lot. So one of the things we really put a lot of effort into is to excel the user experience and make it seem like these are really the user’s cars that we simply manage for them.”“We have a vision of a two-car garage in your pocket. Essentially this means that members can customize their cars from within our member app in terms of radio station, temperature settings, charging cables, and all the relevant accessories like surf racks or dog covers, so that it looks and feels just like their own car.”  

Upshift also offers peace of mind which isn’t necessarily there with other services where people have to disinfect the car themselves or share a ride with someone. “We will also further reduce safety risks by offering a completely contactless experience by means of vehicle telematics and our member app. So you get the car dropped off at your leisure, you unlock it on your own, and it’s fully disinfected.”

Big Names Already On Board

Already live in San Francisco, Upshift has an existing subscriber base and a waiting list. With companies like MINI (BMW subsidiary) and Ford having already provided financing, they have prominent debt finance partners on the vehicle acquisition side. But they also wanted to onboard investors that are closer to their member base, Goldman told us, “we are looking to interact with backers to get their input and learn from their experiences.” That is what led them to their current crowdfunding campaign on Republic.

Looking to Scale to Major Cities in the US

“Right now we believe we have the capacity to triple our scale, both in terms of the size of our fleet, of our membership base, and of our team, to prepare for increased demand. We aim to scale to every major city in the US and then expand globally. We invite anyone who believes in our vision of a more convenient and environmentally sustainable urban car ownership to join us as a shareholder.”zephyr
upshift

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