As equity crowdfunding portals go, Crowdfunder is one of the best. To date, it has generated $160 million in capital commitments with an average capital raise of $1.8 million from more than 12,000 individual and institutional investors. If you’re looking for companies to invest in, Crowdfunder is an excellent place to source deals.
One caveat: Unless a company has filed for a Title III or Title IV raise, Crowdfunder investments require that you be an accredited investor. To be an accredited investor, you must meet minimum income and net worth requirements.
However, as more Title III and Title IV raises happen, I’m sure it will become more accessible for more people to invest on its platform.
Without further ado, here are two exciting equity crowdfunding deals from the Crowdfunder platform.
Companies to Invest In: Life Pack Organics
Billing themselves as the “Emergen-C” of the cannabidiol (CBD) industry, Life Pack Organics’ equity crowdfunding campaign’s hit a definite home run.
It started its fundraising efforts in November of last year. Looking to raise $4 million by the official Aug. 31 closing date, it had secured $4.64 million and is still accepting reservations.
I’m not a pot smoker, but anything to do with CBD (which is non-psychoactive) and health & wellness perks my interest. In recent months I’ve written about several equity crowdfunding campaigns, including Cornbread Hemp and Juna. I especially like what the team at Cornbread Hemp is up to. I hope both see their businesses take off. I guess time will tell.
As for Life Pack Organics, it’s been in business since 2018. Los Angeles-based, the company’s products are suitable for vegans, and they’re tested on a cruelty-free basis to ensure their safety. Its products come in both powder and capsule format.
A single teaspoon (one per day) of its Life Powder has 30 milligrams of CBD, 5 grams of inulin (prebiotic fiber), and 1,000 mg of Vitamin C. A 30-day supply costs $67.95, according to its website.
I haven’t tasted it, but some of the flavors of Emergen-C I’ve tried in the past smell an awful lot like cat pee. If Life Powder smells better, that in itself is a reason to try.
As far as celebrity investors go, Life Pack has Sinbad on board. I guess he can keep things light as it moves toward an eventual initial public offering.
In August, Life Pack entered into a joint venture with Vancouver-based impact investing firm, Alamidas Capital Partners, to develop hemp functional foods and CBD nutraceuticals. Alamidas will operate the joint venture and own 70% of the equity. Life Pack Organics will own the remaining 30%.
The minimum investment in Life Pack Organics is $5,000.
Goldenseed is the second Kevin Harrington-backed venture on Crowdfunder that I’ve recommended InvestorPlace readers take a closer look. The first was Digitzs, a payment processing platform company that has raised over $5.5 million since May 2014 from people like the former Shark Tank investor.
The best part about the California grower of high-quality cannabis and hemp is that its products are grown in greenhouses on 20 acres of nursery land around Monterey Bay. The process replicates the optimal outdoor growing cycle while allowing it to produce 4-6 harvests per year instead of 2-3 outdoors.
“Our cannabis grows in soil that is rich in local flora, micro-fauna, and other biology to feed the worms on our farm. Through the digestion and processing of this biology, the worms create vermicompost that offers essential nutrients for our plants,” Goldenseed’s website states.
Not only is the quality of Goldenseed’s greenhouse-grown pot impressive, but the reality is also that it’s cheaper to grow pot outdoors and in greenhouses than it is indoors.
“The best reason to grow outdoors is cost,” Alison Gordon, the head of 48North Cannabis in Brantford, Ontario, said in 2019. “Our estimates are between three cents and 20 cents a gram. That’s far less than indoor growing and greenhouse growing, which are between 90 cents and $2 per gram.”
So, why, Goldenseed?
Well, Harrington invested because of the strong management team.
“I think Goldenseed is well positioned for success due to its strong management, commitment to quality products, and corporate infrastructure. I am thrilled to be involved!” Harrington said.
Goldenseed’s 2018 revenues were $30,525. Through the first six months of 2019, they were $203,230. As its products continue to gain traction in California — its Sunset Sherbert prerolls have won awards — investors can expect sales to continue to grow exponentially.
However, it’s important to note that as a startup, it’s losing money and could continue to lose money for the foreseeable future.
The minimum investment is $100 for 10 shares. Goldenseed is looking to raise $10 million. Because it’s a Regulation A offering, investors don’t need to be accredited.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.