As the novel coronavirus is allowing investors to look for any place to “buy the dip,” there are other opportunities out there that are not exactly available on Wall Street. And they include some of the most popular startups around the country.
Private investing and equity crowdfunding open a new world to those looking to throw their money into what they hope is the next Amazon (NASDAQ:AMZN) or Google (NASDAQ:GOOG, NASDAQ:GOOGL). This space allows people to search for companies that are not publicly traded or listed on any of the stock exchanges, and invest their capital in the hopes of the idea or company coming to fruition.
Sure, there are plenty of risks involved when it comes to private investing and crowdfunding. That said, though, aren’t there risks with most things?
Websites like StartEngine and SeedInvest provide investment offerings for people who are looking to put their money into a private company, but want to still own a “share” of it. And while people are still becoming more aware of private investing and equity crowdfunding, some of the most popular startups available are already great opportunities.
With that in mind, five names from SeedInvest that have raised the most money to look at today are:
- Trust Stamp
- Miso Robotics
So, let’s dive into these companies.
Most Popular Startups on SeedInvest: Trust Stamps
Amount Raised: $4.32 million
Total Investors: 1,833
Price Per Share: $7.79
If artificial intelligence (AI) is your cup of tea, then Trust Stamps might be a great choice for you.
The company uses facial recognition technology in order to provide identity security for users to protect them from identity theft and data loss. The global identity verification system is utilized across a number of different areas, including banking, financial technology and real estate. In fact, one of their flagship customers is Mastercard (NYSE:MA)
Moreover, here is a bit more information about Trust Stamps:
- Its proprietary technology is protected by just one issued patent. That said, though, the company “has made a considered and strategic decision not to aggressively pursue the issuance of patents in respect of its technology.” This is due to the fear of its internal operations being exposed to, and possibly stolen by, competitors.
- Trust Stamp generated $2.1 million in revenue during 2019 — representing a 152% increase year-over-year. This shows that the company is in fact growing, and that its products are absolutely in demand.
Amount Raised: $2.8 million
Total Investors: 1,431
Price Per Share: $17.16
Staying on the AI train, Miso Robotics is flipping the food industry on its head. And you’ll understand why that is an awful pun momentarily.
The company boasts that it possesses “the world’s first autonomous robotic kitchen assistant” named Flippy. The AI robot is able to operate a grill or a fryer, and can learn new skills over time. Additionally, Flippy has plenty of other great aspects — including automatic tool switching and cleaning and cloud-based learning. It’s also easy to wash.
Moreover, here are some other points that make Flippy and Miso Robotics one of the most popular startups to keep your eye on:
- The company reported that it has $11 million in purchase orders from major burger chain Caliburger that will be fulfilled over the next five years.
- Flippy has cooked more than 40,000 pounds of fried food and 9,000 burgers at two Major League Baseball stadiums and two Caliburger locations
- Flippy currently has one patent awarded, and 12 pending
Amount Raised: $1.75 million
Price Per Share: $4
Caliber is another interesting private investing and equity crowdfunding option for ambitious investors. The company focuses on real estate investing in a handful of properties like hotels and commercial spaces.
According to their website, Caliber currently manage assets valued at more than $375 million. They are based in Arizona, but focus on the entire Southwest region of the U.S.
Here’s some more information about the company:
- Accredited investor base has doubled since 2016 — from 371 to more than 750 — with an average per client investment of $520,000
- Aggregate net capital raised for its funds has increased at an average annual growth rate of 39%
Amount Raised: $1.3 million
Total Investors: 656
Price Per Share: $5.80
We’ve discussed autonomous vehicles before here at InvestorPlace.com, but how about an autonomous lawn mower? This is what Graze is focused on, and hopefully disrupting the U.S. commercial landscaping industry — which is a $53 billion market.
The company’s product features a solar powered machine on wheels that I like to call a “Roomba for your yard.” The fully autonomous lawn mower features a handful of technological parts that allow it to cut grass quickly and efficiently. That said, the company’s overall goal is to reduce labor costs and increase their margins.
Collectively, here are a few highlights about Graze and it autonomous lawn mower:
- Executed letters of intent (LOIs) for 400 mowers with two of the top commerical landscaping companies in the U.S. — LandCare and Mainscape — that could result in nearly $37 million in revenue
- These two giants will help move the product to market
- Customers will hopefully cut labor costs in half with the machine, according to the Mainscape CEO
Amount Raised: $1.02 million
Minimum Investment: $1,000
One of the more relatively new popular startups we’re looking at here is Contiq. This company is known for its AI-powered buyer platform for business-to-business operations that helps retailers win deals faster.
Here are a few of the important things to know about Contiq:
- Key customers include VMware (NYSE:VMW) and Deloitte
- Since launch in January 2020, the company has signed up 700-plus users, six pilots, and are in multiple discussions for additional pilots in the second quarter
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks