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 67,000 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.
- Mini City
- NYC Opportunity Fund
- Drink Monday
Now, let’s dive in and examine each one.
Equity Crowdfunding Offerings to Buy: AquaBoy
If you live in a hot, humid area, chances are you’ve pondered at least once about the enormous waste of air conditioning units. Yes, there’s the fact that you’re sucking in tremendous energy to help make your living quarters, well, livable. But the water that’s produced from the condensation of your AC unit simply goes to waste. However, with AquaBoy — one of the equity crowdfunding offers listed on Netcapital — you can turn this humidity to good use.
Featuring an air-to-water technology system, AquaBoy units convert the humidity from the atmosphere into safe, filtered and drinkable water. That said, such a technology has huge implications for the global water crisis. According to WorldVision.org, 844 million people lack basic drinking water access. So, theoretically, AquaBoy machines at scale can help meet critical human needs.
But it’s not just addressing high-level concerns in developing regions of the world that makes this one of the more exciting private investing opportunities available. Rather, by promoting clean water production units, this may help reduce demand for bottled water — with plastic bottle pollution being another issue that AquaBoy can address.
To learn more about this equity crowdfunding venture, please visit AquaBoy’s Netcapital pitch deck.
For several years, one of the growing disparities in the U.S. was the rise of homelessness. Despite our nation being the greatest economic power ever, for various reasons, we are not able to take care of the many Americans that slip through the cracks. In January 2019, 17 out of every 10,000 people in this country experienced homelessness on a single night.
While it’s not my desire to project negativity on an already challenging topic, the crisis will likely worsen over the months ahead. Sure, unemployment statistics suggest that the pain isn’t too bad. However, such calculations ignore people who again have fallen through the cracks.
Fortunately, we have Mini City, one of the equity crowdfunding offerings that truly epitomizes environmental, social and governance (ESG) investing. Mini City addresses this critical humanitarian issue by leveraging technology to help homeless sufferers integrate back into society.
One way its doing this is by providing identification services to homeless individuals. Through IDs, American citizens are better able to access crucial resources in the hopes that they can advantage them to eventual economic connectivity and productivity.
All around, Mini City is the feel-good offering you need for your private investing portfolio. And to learn more, please visit the company’s Netcapital investor prospectus.
Equity Crowdfunding Offerings to Buy: Hubsai
These days, connectivity and digital intelligence solutions don’t just revolve around our smartphones and portable electronic devices. We want everything to be connected, including our homes. Of course, with the rapid ascent of digitalized innovations, end-to-end smart home platforms are taking off.
This isn’t just an anecdotal observation. According to MarketsandMarkets.com, the “global smart home market size is expected to grow from USD 78.3 billion in 2020 to USD 135.3 billion by 2025, at a CAGR of 11.6% during the forecast period.”
Factors catalyzing this market segment include “increasing number of internet users, rising consumer disposable income in developing economies, growing importance of home monitoring in remote locations…” among many others.
However, a critical problem exists with smart home platforms: they’re overly complicated, often requiring multiple apps to control the functions of a single home. To address this, Hubsai streamlines this convoluted process under one simplified central hub — doing away with technical requiring users to have strong technical acumen.
Furthermore, Hubsai is one of the most secure smart home platforms as its deliberately “low tech,” providing a non-cloud solution for its clients. With cyberattacks on the rise, sometimes going low tech is a crucial advantage. To find out more about Hubsai, check out its private investing profile on Netcapital.com.
Thanks to the proliferation and widescale uptake of companies like Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and Snap (NYSE:SNAP), social media has become an integral part of society. More than just about connecting with long-lost friends, this industry has helped create its own viable economy. From finding a new job opportunity to advertising a grassroots fundraising campaign, much productivity has sparked from social media.
At the same time, not everything about the industry is positive. As with any lucrative or popular sector, bad actors take advantage for their own nefarious purposes. One of the harmful problems that occur on this medium is cyberbullying. According to DoSomething.org, “About 37% of young people between the ages of 12 and 17 have been bullied online.”
That’s a horrible statistic. Thankfully, CiSApp — one of the newest equity crowdfunding offerings on the MicroVentures private investing platform — can help. Featuring a blockchain-based decentralized social network, CiSApp fosters a safer and more productive digital landscape.
How so? By requiring all users to verify their identity which is later connected to CiSApp’s decentralized network. In turn, this process removes anonymity from the platform. So, naturally and organically, this disincentives bad behavior by holding individuals accountable for their words and/or actions.
Collectively, this might be the equity crowdfunding solution to address the darker elements of social media. To get more information, head on over to CiSApp’s private investing profile.
Equity Crowdfunding Offerings to Buy: NYC Opportunity Fund
When we think about New York City today, we usually have images of the glitz, glamour and perhaps former President Donald Trump’s vast real estate empire. But as the New York Times explained, it wasn’t all that glitzy:
“How close was New York City to bankruptcy in 1975?
So close that the city’s lawyers were in State Supreme Court filing a bankruptcy petition.
So close that police cars were mobilized to serve the papers on the banks.
So close that aides to Mayor Abraham D. Beame had written a statement announcing the default along with an emergency effort to save the city’s dwindling cash for vital services like police and fire protection.
How times have changed! One of the underlying themes of the Big Apple is that it always finds a way to come back. That’s the main thesis behind NYC Opportunity Fund, the most contrarian of equity crowdfunding offerings listed on the Republic.co private investing network.
This fund seeks to advantage the sizable dip in New York City real estate, including bulk condos. As you know, the novel coronavirus and the resultant economic and social discord has disrupted the metropolis. However, New York is too important and too geographically significant to just fade away.
Personally, I’m intrigued. And if you are too, you may want to check out NYC Opportunity Fund’s investor prospectus.
One of the rights of passages into adulthood is the ability to consume alcohol. Yes, there’s a Pandora’s box element associated with craving something that was previously illegal or inaccessible to you. However, alcohol in this country — and many others — is integrated into both social and workplace functions.
After all, there’s nothing better than to have a few drinks with your work colleagues and blow off some steam. However, this aphorism doesn’t apply to everyone. Whether for health reasons or religious restrictions or any number of issues, a growing number of adults don’t want to drink alcoholic beverages. However, they also don’t want to be left out, which is what Drink Monday resolves.
Drink Monday taps into the burgeoning sober curious movement. Primarily, these folks eschew alcohol for health reasons — nobody wants to wake up with a serious hangover. By offering a compelling non-alcoholic cocktail, Drink Monday serves a growing market: one that wants to socialize with peers but without the penalty of alcohol.
Prior non-alcoholic beverages were gimmicky and not worth consuming. However, Drink Monday is distinct in that it offers the crispy flavors of premium cocktails while keeping you sober and alert. To find out more about this private investing venture, check out the company’s pitch deck.
Equity Crowdfunding Offerings to Buy: Roombus
Perhaps the most surprising dynamic of last year was the sharp spike in housing prices. At the onset of the coronavirus pandemic, the environment appeared almost apocalyptic. We all remember those photographs of downtown Los Angeles and Las Vegas almost entirely devoid of people. Logically, you would assume that real estate prices would take a hit.
Instead, they did the exact opposite. I’m sure I’m not the only one who thought, where the heck did people get all this money from? Of course, a major catalyst for the rise in prices came from affluent buyers. With interest rates plummeting, there was very little reason for these sophisticated private investors to stay in cash. So, into real estate they went.
Sadly, this only exacerbated the housing crisis, specifically the affordability dilemma for middle class workers. That’s why Roombus — another ESG play, this time listed on the WeFunder network — offers a critical solution. Specializing in elegantly designed modular homes, Roombus helps bridge the affordability and access gap.
Moreover, Roombus smart homes incorporate all the latest connectivity technologies. As well, they’re manufactured with quality materials, withstanding storms, earthquakes and deterring burglars. To learn about this private investing venture, check out Roombus’ pitch deck on WeFunder.com.
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