With millions of Americans still working from home, the additional time they would have spent stuck in traffic has shifted over into the markets. While that’s a positive development, many folks are missing out on lesser-known opportunities. Though far riskier than established blue-chip stocks, innovative companies to invest in are more likely found among the ranks of previously inaccessible startups.
However, thanks to equity crowdfunding platforms like Netcapital, everyday people have an opportunity to become private investors. Previously, various regulations prevented access to private equity. But with advancing technologies and changing laws, today’s retail market participants have unprecedented access to formerly exclusive sectors.
In the long run, this should be a net positive for both investors and the various private companies to invest in. For starters, young enterprises can now tap the power of equity crowdfunding to raise capital for their growth initiatives. This may be a better option than seeking loans, which organizations obviously must pay back.
For the private investor, Netcapital stocks provide a ground floor chance to acquire equity in promising businesses. While taking your shots in the public markets is great, you’re buying into an already fleshed out vision. With equity crowdfunding, you’re in the driver’s seat prior to the initial public offering.
However, it’s not all fun and games. Though you can expand the companies to invest in through Netcapital stocks, buying startups present risks. The harsh reality is that 90% of new startups fail. In addition, 75% of venture-backed startups fold. Therefore, you must exercise extreme due diligence before pulling the trigger. Even if you do, that’s no guarantee you’ll make money.
Still, if you ever dreamed of buying the next big thing before the IPO craze, Netcapital is one viable platform to help you realize that passion. Here are five companies to invest in with potential upside.
TrippBio
At first glance, you might think that TrippBio is late to the game. As a biotechnology firm specializing in a repurposed Food and Drug Administration-approved drug for the treatment and prevention of Covid-19, the disease caused by the novel coronavirus, the science is certainly compelling. However, as one of the Netcapital companies to invest in, it has a glaring problem: some vaccine candidates are already in late-stage clinical trials.
But then again, TrippBio might have something here. Specifically, its drug candidate, TD213, can double as either a preventative platform or a treatment. As White House health advisor Dr. Anthony Fauci has stated, a vaccine at the soonest will probably be available at the end of this year. Well, that doesn’t help current Covid-19 patients.
Additionally, what happens if a vaccine is not ready soon enough? In that case, the novel coronavirus could mutate, rendering present vaccine candidates useless.
Finally, TD213 has already been approved by the FDA in part because of its safety profile. As I mentioned in earlier InvestorPlace articles, AstraZeneca (NYSE:AZN) had a hiccup with its vaccine trial. Possibly, there may have been an issue with AstraZeneca’s adenovirus vector that carried the genetic sequence of the novel coronavirus.
If that was the case, TrippBio’s safety profile will be more reassuring to patients. Of course, all vaccine/treatment plays carry risk. However, this is an intriguing private investing opportunity for those that can handle the heat. For more information, please visit TrippBio’s NetCapital profile.
AquaBoy
I like to consider myself a well-traveled person. And one of the reasons why I despise areas that feature tropical weather is humidity. Even if the outside temperature isn’t that hot, excess humidity can ruin a perfectly sunny day.
It always got me thinking – what if we can somehow get rid of this humidity and do something with it? After all, we see so much water “waste” from our air conditioning units. Couldn’t we use this waste for better use? Turns out, we can thanks to AquaBoy, one of the most intriguing companies to invest in.
Leveraging brilliant engineering technology, AquaBoy essentially combined the watercooler and dehumidifier in one platform. As you know, several households in humid areas buy dehumidifiers to create a more comfortable environment. Here, AquaBoy extends one more benefit with its innovation: purified drinking water.
As the company continues to develop its product, the concept of converting humidity to water has strong global implications. At scale, AquaBoy could potentially help mitigate the world’s water crisis by taking an undesirable condition – high humidity – and delivering something critical and useful.
Finally, science fiction is becoming more science than fiction. Nevertheless, you should be aware that AquaBoy products are expensive and according to customer reviews, are very loud. Over time, though, the cost to buy and operate should go down. For more information, head on over to AquaBoy’s Netcapital profile.
Melanence
Typically, companies to invest in on the public markets have achieved their lofty status due to connections with venture capital. However, not every entrepreneur is so blessed to have such networks. Moreover, the harsh reality is that communities of color have even less access to capital. As a result, the cycle of dependency repeats across generations.
Fortunately, thanks to equity crowdfunding platforms, the playing field is much more even. And in that context, Melanence strives to deliver professional, career and personal development tools created by and for communities of color. Given the vast inequities that have been exacerbated by the coronavirus pandemic, Melanence is one of the Netcapital stocks you can feel good about supporting.
Believe me, this is not some political statement. According to the U.S. Bureau of Labor Statistics, the national unemployment rate in August was 8.4%. But drill into the details and you’ll find that Black workers have an unemployment rate of 13%. Further, those of all races that have a bachelor’s degree or higher have vastly outperformed their lesser educated peers.
Therefore, Melanence wants to close the gap between communities of color and the majority population through targeted education programs. Clearly, the need exists. However, one of the risk factors involved with Melanence is the highly charged political environment.
Still, I like Netcapital stocks that are levered to a higher purpose. For more information about Melanence, please visit its equity crowdfunding profile.
Transparent Path
Even before the pandemic struck, food waste was a major problem. According to the U.N. Food and Agriculture Organization, 14% of the world’s food is lost before it even reaches retail. As you might expect, the largest share of that food waste was attributed to fresh fruits and vegetables.
According to Transparent Path, much of that waste can be attributed to supply chain inefficiencies. And within the logistics spectrum, multiple factors could play into food waste, such as negligent handling/management or outright abuse. While many industry insiders recognize the dilemma, very few if any have addressed it because food distributors rely on antiquated supply chain systems.
But with the power of application programming interfaces (APIs) and intelligent sensors, retailers can hold distributors accountable for properly managing food transportation. For instance, ride sharing platforms like Uber (NYSE:UBER) utilize communication APIs that update riders with where their drivers are. In similar fashion, Transparent Path allows retailers and other parties to ensure that proper protocol is in place during transportation.
Not surprisingly, Transparent Path is easily one of the most attractive companies to invest in. However, like other Netcapital stocks, there are risk factors to consider. In this case, the biggest obstacle could be the economy. As the coronavirus demonstrated, without demand (due to permanent restaurant closures), it doesn’t matter how efficient a supply chain process is.
Nevertheless, our legacy systems of food transportation is simply not cutting it. If you want more information about Transparent Path, take a look at its Netcapital profile.
BBQ in the Park
Nothing is as American as a cookout in the great outdoors. In addition, nothing is as American as being a complete doofus. Now, we’ve all known that Americans are not the brightest tools in the shed. However, the recent raging firestorms have proven that we desperately need an alternative to “analog” cooking platforms in our national parks, which have been banned due to environmental/health concerns.
Fortunately, we have BBQ in the Park. Leveraging the power of electricity, park patrons can enjoy their outdoor cookout without smoke or harmful emissions that could impact air quality. More importantly given our present circumstances, this platform does not emit open flames or sparks that could inadvertently start forest fires that, you know, kill people and ruin many lives.
Better yet, the concept of BBQ in the Park has been proven in the Australian market, where the electric-powered platform has been utilized for years. Frankly, with the disasters that we’ve suffered in 2020, it’s time for a change. This is one of the Netcapital stocks that will likely command much attention from younger investors.
Still, there are risks to consider, like any of the companies to invest in on this list. Primarily, I’m not sure what outdoor activities will look like, especially if we can’t contain the coronavirus. But being that BBQ in the Park is a necessary step, the pros likely outweigh the cons. For more info, check out its Netcapital profile.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
