These online equity crowdfunding platforms are available to U.S.-based investors and companies. While all platforms accept accredited investors, only a few accept non-accredited investors. Many are not clear at this point, and investor requirements of a particular platform may change at any time. Potential investors should contact the platform of their choice to determine the current policy
Founded in 2010, Angelist is one of the oldest and most established equity crowdfunding platforms. It was originally conceived for broker connections between cash-bonded technology entrepreneurs and angel investors – high-net-worth, tech-savvy funds, many of whom earned their fortunes by selling their own successful startups
Angelist continues to its roots even today. There are three main ways to invest in companies and funds on this platform:
Registered investors can partner with investor syndicates led by notable investors – typically venture capitalists with extensive Silicon Valley experience. Syndicates usually exist to invest in specific companies. They may have dozens or hundreds of investors who pool their resources to make low-six-figure investments.
AngelList Access Fund.
Angelist Access Fund provides access to dozens or hundreds of individual deals. Everyone is vetoed by AngelList, which cuts down on your due diligence responsibilities (although you should still consider all the component companies themselves). The minimum investment is $ 100,000, so it is not for everyday investors.
The service is limited to the high net worth of individual and institutional investors (including family offices) who can invest at least $ 500,000 at a time. Professional investors get their own angelist representatives, as well as rare access to company founders and executives.
CircleUp connects investors with consumer-facing startups, mostly in the technology, fitness and food and beverage sectors. Most companies have at least $ 1 million in revenue, and all have “a solid product or retail outlet that you can touch, taste, use, or travel to.” CircleOp’s machine learning engine, Helio, evaluates over 1 million companies on billions of personal data points to pick the most promising startups from the pack.
There are two ways to invest with CircleUp:
Direct Company Investments.
If a company is actively raising funds, investors can buy shares directly through the platform.
Circles are index funds that buy shares in many companies – often dozens – in one go. CircleUp selects a highly qualified CircleUp member, typically a qualified investment professional with years of industry experience to oversee each circle. The circles may cover specific areas, such as health food, or include a broad mix of companies favored by the major investor
The fund offers qualified reward-based crowdfunding, a la Kickstarter, as well as equity crowdfunding. For companies interested in equity crowdfunding, the fundable onsite profile helps with building, pitch construction, and even business plan development. Now operating under the aegis of TheStartups.co, whose portfolio businesses include the virtual assistant platform Zirtual, its wheelhouse software, hardware and consumer product startups.
While it does not formally prohibit entry, CrowdFund’s listed companies and funds tend to be heavily skewed toward innovative consumer products, consumables, and social / nonprofit niches (such as Green Energy Startups and African Real Estate Funds). Does matter.Company and fund profiles are incredibly detailed, with sales metrics, case studies, business plans, third-party analysis, and leadership profiles visible to the public.
Founded in 2005, EquityNet sees itself as the “original equity crowdfunding site” and claims to hold the sole patent for the concept. Its listed unit mix is ??similar to Crowdfund, with an emphasis on consumer products and social enterprises. EquityNet also appears to attract single-asset projects, such as assisted-living facilities and medical clinics, as opposed to product-based startups or multi-asset funds. High-tech B2B concepts – enterprise-grade SaaS security solutions, next-generation lithium-ion batteries, “smart” glass coatings – even spread.
The co-founders of Wefunder in were heavily involved in the debate over the JOBS Act and claimed some credit for measures favorable to crowdfunding that made it into the final legislation. While most competitors require investors to have at least $ 1,000 per company or fund, Wefunder offerings can have a minimum investment limit of as little as $ 100 – although many offerings require at least $ 500 or $ 1,000. it occurs. Listed offerings range from funds of 10 to 15 early stage companies, investing in different startups in the biotech, green energy, insurance, logistics, retail and packaged food segments.
LocalStake connects investors with revenue-generating small businesses. Listed companies are involved in consumer-facing enterprises, such as brewing, food production, and apparel manufacturing. The minimum investment range typically ranges from $ 250 to $ 500.
Localstake offers four investment options:
Revenue Share Loans
Revenue shares are an open-ended maturity of a loan and return a fixed amount to each investor – typically an amount equal to 1.5 times the principal. For example, a representative loan given to an individual investor can have a principal of $ 1,000, a total repayment amount of $ 1,500, and a five-year maturity – equivalent to a 10% annual return on investment. The offering unit makes monthly payments on each investor’s loan based on the loan principal and the company’s revenue that month. Repayment continues until the rate of return is reached.
The offering of convertible debt operates as a traditional loan until the next fundraising round of the offer unit, at which point they convert to equity at the then current valuation.
Investors share their shares in the company directly or through an intermediary, and can receive regular dividend payments after a set period.
Investors receive principal and interest payments according to a set schedule. Time horizons vary by company.
SeedInvest is a more button-up platform that specializes in “highly sensitive investment opportunities”. The platform claims to accept just 1% of applicant companies. Although its company profiles are mostly invisible to the general public, registered investors have access to a wealth of descriptive and financial statements about each listed entity, as well as direct access to founders or executives.
EarlySher is specifically dedicated to commercial real estate crowdfunding opportunities, including multi-asset funds and discrete properties. For example, you can invest in a retail complex in Las Vegas or an office building in Raleigh.Due to the high value of the assets involved, most opportunities require minimal investment of anywhere from $ 5,000 to $ 25,000. Depending on the preference of the listed entity, investors make either a binding commitment or a non-binding pledge.
PeerRealty also focuses exclusively on real estate, mostly commercial and multi-family residential. Most of the opportunities are specific projects, such as already completed apartment buildings and office buildings planned or under construction. Multi-property portfolios are also available. Note that investing in planned or under construction projects may present additional risk.
Most PeerRealty opportunities require a minimum investment of $ 5,000, and sometimes more. Funding transactions typically take place through the escrow system of the platform.