Editor’s Note: This article on equity crowdfunding is regularly updated to bring you relevant, up-to-date information.
We all know the early bird gets the worm. In the investment market, many people — particularly speculators — operate under that same policy. Typically, this means buying into initial public offerings (IPOs). However, thanks to recent laws opening the doors to equity crowdfunding and private investing ventures for the non-accredited investor (i.e. most of us), new opportunities have emerged.
One of the biggest drawbacks with IPOs is that they’re not really ground-floor investments. Instead, the leadup to a company’s public debut has been fleshed out. Sure, many have strong performances right out of the gate, allowing speculators to enjoy quick profits. But Wall Street’s graveyard is also filled with plenty of names that failed to catch on.
On the other hand — although equity crowdfunding is inherently risky — the allure is that if ventures succeed in the leadup, the real early bird investors can sell their holdings at a nice rate. Often, private investing requires you to hold your position in an illiquid market until the big IPO payoff. But to the victor goes the spoils.
Another reason to consider equity crowdfunding is its gaining popularity. According to data from McKinsey & Company, the value of alternative investments worldwide increased 125% between 2005 and 2013. So, private investing is not a new concept — pent-up demand has been brewing for decades.
Unsurprisingly, the number of campaigns has also increased significantly. In 2017, we saw over 38,000 pitches to private investing participants. Based on data from Statista.com, experts predict we’ll see 67,100 proposals by 2024. In other words, this sector is on fire, necessitating at least a rethink on portfolio growth.
Still, you should be aware of the risks. According to Forbes, “90% of startups fail.” While you can deploy analytical methods to find the viable 10%, the raw odds absolutely do not favor you. At the very least, you could be looking at holding your position for many years without any accrued benefits.
Therefore, it’s imperative that you do your due diligence on any venture. Don’t be afraid to ask questions — the more difficult, the better. And above all, don’t take anything at face value until you’ve verified it for yourself.
Nevertheless, the bottom line is that if you want explosive growth, you need to start in the earliest phase possible. With the burgeoning equity crowdfunding market, this previously exclusive opportunity is now yours for the taking.
- The Feel Good Lab
- Oscilla Power
Now, let’s dive in and examine each one.
Equity Crowdfunding Offerings to Buy: The Feel Good Lab
I’ve been covering equity crowdfunding opportunities for several months now. I can tell you right off the bat that The Feel Good Lab — a medicinal play listed on the Netcapital private investing platform — features the best marketing pitch I’ve ever seen.
For anybody interested in equity crowdfunding to raise capital for your company, I’m literally begging you: please don’t let your fear of dumbing down your investment pitch goad you into talking gibberish about protocols, synergies and vertical integrations. Take The Feel Good Lab’s example: explain the who, what, where, when and why in accessible language. Makes it easy on me and enhances profitability potential for you.
Indeed, Feel Good is so good that my explanation of the company is unnecessary. So, I’ll just get into the analysis. According to a 2018 report by the Centers for Disease Control and Prevention, approximately 50 million U.S. adults suffer from chronic pain, with 20 million being debilitating cases. However, various studies indicate that the pain sufferer allocation is between 11% to 40%.
The bottom line is that it’s a serious problem and there are no readily accessible solutions. Prescription drugs may lead to addiction problems, as we’re seeing with the opioid crisis. Over-the-counter solutions are great for acute pain but don’t address chronic issues. Also, they contain yesteryear ingredients that may be harmful to long-term wellness.
Fortunately, The Feel Good Lab fills the opportunity gap with an over-the-counter solution infused with all natural ingredients that have been essential components of eastern medicines for centuries. Better yet, the company has distribution channels with Target (NYSE:TGT) and CVS Health (NYSE:CVS), demonstrating its true potential.
To learn more about The Feel Good Lab’s opportunity, please visit its Netcapital pitch deck.
The vast content development industry is a multi-billion-dollar industry and individual companies invest considerable resources for their flagship creations. In order to maximize the return on these investments, many organizations seek out focus group testing to gauge audience engagement. However, focus groups can be ineffective, in large part because of peer pressure or the fear of expressing opinions outside of mainstream norms.
And there’s also this other little issue called the novel coronavirus. With the pandemic shutting down everyday life, focus groups are really out of the question. As well, teleconferencing has its limitations, particularly in gauging non-verbal communication. What are media content companies supposed to do?
This is where Jinglz enters the stage. Utilizing a proprietary artificial intelligence platform that records and analyzes facial expressions, focus group participants can first and foremost provide their feedback in a comfortable, safe and contactless manner. In addition, as participants are viewing the content they are being asked to judge, Jinglz’s AI platform gets to work, assessing non-verbal cues. Essentially, this tech gets down to the brass tacks, providing a quantitative picture of what works and what doesn’t.
Further, Jinglz’s innovation allows content companies to get truly honest opinions. Since the platform is contactless and “isolated,” people can share their feedback freely. As well, the collected facial recognition data can be juxtaposed with stated opinions, seeing if there are any misalignments.
Finally, even if the pandemic fades away soon, Jinglz really offers a superior solution anyways. To learn more about this relevant equity crowdfunding opportunity, please visit the company’s investor prospectus on Netcapital.com.
Equity Crowdfunding Offerings to Buy: Oscilla Power
Over the years, we’ve seen an explosive rise in demand for clean renewable energy. Further, with the incoming administration of President-elect Joe Biden, we could be on the cusp of a true green revolution. Invariably, then, private investing ventures focused on wind and solar energy solutions have sprouted, driving up names like NextEra Energy (NYSE:NEE).
However, one of the biggest problems with wind and solar is that they’re intermittent energy sources: if there’s no wind or no sun, these platforms are rendered useless. Therefore, mainstream renewable energy solutions run into the lack of predictability issue. Further, they’re unable to adequately address spike demand, as we saw with the California rolling blackouts last year.
Fortunately, the renewables industry is a creative one. And a compelling solution that has been forwarded is wave energy. Like it sounds, this platform harnesses the 24/7/365 kinetic energy inherent in the movements of the vast ocean depths. Last October, I discussed the speculative case of Ocean Power Technologies (NASDAQ:OPTT), which has performed very well.
But if you want the opportunity for extreme upside, you should check out Oscilla Power, a groundbreaking wave energy company listed on the MicroVentures equity crowdfunding network. Having received funding from various government agencies like the U.S. Department of Energy, Oscilla levers serious backing. Plus, with a green-centric administration, its shares could receive a boost merely from the positive speculation.
In my opinion, the most important tailwind driving Oscilla forward is its potential to provide baseload power. Although we’ve seen green solutions like electric vehicles flourish, at night when they’re charging, those electrons typically come from coal-based powerplants when solar and wind are down. With wave energy, we just might become truly green.
To learn more, take a look at Oscilla’s pitch deck on MicroVentures.com.
Social media may be something that perplexes older generations. However, with the advent and mass proliferation of companies like Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and Snap (NYSE:SNAP), social media has become a permanent fixture in our world. According to Statista, the industry featured 3.6 billion users worldwide last year. By 2025, this figure will jump to 4.41 billion.
Needless to say, advertisers have caught on, focusing their efforts across the most popular social media channels. However, not everything about this innovation is encouraging. As Forbes contributor Alice G. Walton pointed out, there are many negatives associated with the proliferation of social media. Primarily, the industry can foster poor self-image and other mental health pressures. In addition, the addictiveness of the platform creates a vicious cycle.
Some mental health proponents have argued for decoupling from social media altogether. However, pure abstinence is not realistic, in part because social media has ingrained itself in critical activities, such as job hunting. This is where social media platform DARE comes into the picture.
Rather than pushing wholesale changes, the concept of DARE revolves around leveraging the power and influence of social media to promote positivity. As the name suggests, the company does this through encouraging users to complete challenges or dares that involve true “analog” interactions with others.
This could involve something seemingly as silly as convincing a complete stranger to perform a designated task. However, such a dare will teach users valuable sales and communication skills, while simultaneously promoting a decoupling effect by getting users away from isolated social media silos.
It’s a quirky equity crowdfunding offering, but it just might be the solution we need. To find out more, head on over to DARE’s investor prospectus on MicroVentures.com.
Equity Crowdfunding Offerings to Buy: Automatic
In recent years, the fintech sector has skyrocketed in interest mostly because of its convenience: digitalized technology incorporating AI can cut down on the time spent on paperwork. That’s the case with the auto loan industry, which experts predict to be a $1.37 trillion market by 2023.
However, the auto loan subsegment is still stuck in the past, leading to much frustration for independent auto dealers and lenders. Automatic, one of the exciting equity crowdfunding offerings on the WeFunder platform, bridges this lost opportunity by connecting dealers and lenders in a single, seamless network. Just by accelerating the process, Automatic boosts efficiency, which in turn improves earnings potential throughout the independent auto dealership supply chain.
Still, one of the nagging questions might be the rise of electric vehicles: won’t this cut into independent dealership sales? While anything is possible, I highly doubt it because EV technology has yet to bring practicality at a price point that’s accessible to most buyers. This is especially the case for EV manufacturers that have “run out” of federal tax incentives.
Further, the coronavirus pandemic has incentivized urban dwellers to buy their first cars due to health concerns. That being the case, Automatic offers a relevant service — making the loan application process quick and easy. This allows consumers to avoid unnecessary hours of physical exposure while getting the right car on the right terms.
To see if this deal is right for you, please head on over to Automatic’s WeFunder.com profile.
With social media and its dramatic influence playing a crucial role in brand presence and reputation, there’s never been a more important time for companies to focus on positive growth-generating marketing campaigns. While individual budgets vary, some of the biggest organizations in the world spend more than 20% of their top-line sales to marketing. In fact, a few corporations will earmark close to 50% of their revenue to marketing campaigns.
Obviously, then, it’s critical that management teams for these top brands ensure that their dollars are spent wisely. However, the old school methodology came down to a hope-and-pray strategy, which is no strategy at all. Also, biases from the marketing team can creep in, unknowingly stymieing their campaign.
It’s time to rethink this tired paradigm, which is what Cortex is all about. Incorporating a proprietary AI-based platform, Cortex’s application combs through mountains of data about the client company and its industry. Later, it provides guidance on the content that will be most profitable for the brand. And the advice goes deep into the granularity, including factors such as an actor’s hair color and fashion accessories.
Thus, Cortex immediately improves the marketing machinery by focusing purely on what works. The data, not stupid human politics, is the guiding force. Not only that, major firms, including Toyota (NYSE:TM) and Marriott (NASDAQ:MAR), are counted among Cortex’s partners.
To get the inside edge on bringing marketing to the 21st century, please check out Cortex’s private investing pitch deck.
Equity Crowdfunding Offerings to Buy: SnapDNA
Prior to the coronavirus pandemic, perhaps the biggest concern for the food industry was poisoning-related incidents. Food recalls such as Salmonella outbreaks are first and foremost a severe health risk. Beyond that, they can be incredibly damaging to impacted brands, not just from a financial perspective but a reputational one as well.
Further, foodborne illnesses can wreak havoc on restaurants, particularly fast-food and fast-casual outlets. A recent example is Chipotle Mexican Grill (NYSE:CMG), an incredibly popular eatery that suffered catastrophic damages until management, to its credit, engineered one of the most remarkable recoveries in business. However, this is one of the unicorn cases. Many businesses just don’t recover from the collective pain that food-poisoning outbreaks cause.
Fortunately, we have a crucial, timely solution in SnapDNA, an incredibly relevant equity crowdfunding opportunity listed on Republic.co. Featuring “the first self-contained, on-site analysis designed to replace all food pathogen lab tests,” SnapDNA provides near-instantaneous assessments of food products. Better yet, the platform can be deployed and interpreted without the need for costly data specialists.
This is a huge paradigm shift from the current solution, which involves lab testing food products. As you might guess, this is a costly and time-draining endeavor. In a new normal where every dollar of sales counts, time truly is money. Thus, SnapDNA provides a near-immediate return on investment.
Also, keep in mind that according to Grand View Research, the food safety testing industry in 2018 was valued at $18 billion. With SnapDNA’s next-generation solution, this could be a real winner. For more information, please visit the company’s pitch deck on Repubic.
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.
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