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.
- greenbox Robotics
- Eyes 4 Lives
- ASK Education
- Flatiron — Miami
- Audubon Biosciences
Now, let’s dive in and examine each one.
Equity Crowdfunding Offerings to Buy: greenbox Robotics
One of the most exciting components of the cannabis legalization movement is the transition of an illegal market to a legal (and therefore taxable) one. Further, with two-thirds of Americans supporting unfettered adult access to the maligned plant, this dynamic seemed like a win-win.
In my opinion, it is exactly that. However, the U.S. retail cannabidiol (CBD) market is running into distribution and marketing inefficiencies. Namely, less-than-ideal products proliferate shopping aisles with little thought toward product and industry evangelism. That’s where greenbox Robotics — listed on the Netcapital equity crowdfunding platform — comes into the picture.
Combining technology with convenience, greenbox offers an extraordinarily relevant solution that’s perfect for our times. Featuring a smart kiosk located in high-traffic areas, greenbox is an end-to-end platform, providing educational content at the point of sale while offering quality botanical products in a contactless format. As well, the company features advanced sensors and artificial intelligence, promoting safe, age-verified transaction.
To learn more about this exciting private investing venture, head on over to greenbox’s Netcapital profile.
Eyes 4 Lives
Thanks to the push toward a digitalization of everything economy, we are usually never more than a fingerprint away from the connected ecosystem. While this has produced myriad innovations as well as changes in how we view the workplace, this convenience comes at a cost — and I’m not talking about the hit to the wallet (though that is quite severe).
Instead, I’m referring to an attribute that money can’t buy — our vision. According to data from the VisionImpactInstitute.org, “90% of patients do not talk with their eye care provider about digital device usage.” Yet vision problems related to digital device usage cuts across all demographics, especially young adults who spend hours glued to two or more devices at a time.
Fortunately, we have Eyes 4 Lives, another equity crowdfunding opportunity on Netcapital, that reminds use to protect our most cherished physical gift. Featuring software that works in conjunction with our various devices’ integrated cameras, the application provides warnings about eye strain and ambient conditions that may impact eye health.
Think of it as a breathalyzer but for your eyes — the app will remind you when you need to just take a break. To find out more, please visit Eyes 4 Lives’ investor pitch deck on Netcapital.
Equity Crowdfunding Offerings to Buy: ASK Education
Increasingly, the geopolitical landscape doesn’t just involve economic sanctions and the threat of such. Instead, education is vital to the continued success of our nation and to ensure that the values of freedom and democracy reign supreme over suppression and totalitarianism.
Unfortunately, this is the reason why the novel coronavirus pandemic has been so disruptive. Yes, there is an acute, immediate impact to our society. But as McKinsey & Company points out, the lag imposed on our educational system could engender lifelong consequences. We need better solutions and ASK Education may have the answer.
Standing for “Acquire Skills and Knowledge,” ASK Education provides valuable learning tools for underserved subjects such as health literacy and mental wellness. Additionally, the company provides what it labels “21st century skills,” competencies that include communication, ethics, problem solving, creativity and teamwork.
Even before the pandemic, American students lagged behind some of their international peers. Today, there’s never been a more crucial time to shore up our academic infrastructure. To learn more about this vital equity crowdfunding venture, please consult ASK Education’s pitch deck on Netcapital.com.
Flatiron — Miami
Following a few months after the initial shock of the coronavirus, real estate prices soared. On the surface, the jump in home values was counterintuitive. However, the monetary push to drive benchmark interest rates to subterranean levels made for a cheap money environment. Thus, real estate was an attractive option — if you could afford it.
Frankly, many can’t. However, this is what makes Flatiron — Miami, one of the private investing ventures listed on Republic.co, quite compelling. Flatiron owns property in the luxury Brickell condominiums in lucrative downtown Miami. As society reopens from the Covid-19 disaster, Miami real estate valuations should rise.
Now, it’s fair to point out that millennials are moving to Florida but not necessarily to Miami. Recent data suggests that more young Americans in this key demographic are leaving Miami than moving in.
Here’s the thing — Miami is a coastal city and inherently, coastal cities are more valuable than landlocked locales. Further, Miami is a central hub to Latin America and the Caribbean. Therefore, economic reality will likely make the city more viable and desirable, not less.
To find out more about this equity crowdfunding play, check out Flatiron’s pitch deck on Republic.co.
Equity Crowdfunding Offerings to Buy: Tempo
Even if you’re not a gamer, you probably recognize how massive of an industry the video game sector has become. Evolving from a niche market occupied exclusively by the friendless male — not that I would know from personal experience — to a multi-billion-dollar industry, you ignore gaming at the risk of incurring an opportunity cost for your portfolio.
Within this segment, e-sports has rapidly transformed the broader entertainment landscape. By 2023, many experts believe that the annual growth rate of the esports sector will be 10.4%. Moreover, the total audience at that time could be 646 million.
However, the challenge for e-sports development is scale and engagement — or lack thereof. That’s where Tempo, an interactive experience firm, aims to implement lucrative changes. Leveraging its years of industry-leading innovations, Tempo has created a self-sustaining e-sports ecosystem, featuring multiple revenue-generating avenues such as a premium streaming channel and original gaming content.
Further, the Covid-19 pandemic likely offered Tempo an organic marketing opportunity, replacing viewership of live sports entertainment with the digital variety — something that’s more relevant to today’s generation.
To find out more, please visit Tempo’s equity crowdfunding pitch on Republic.co.
Thanks to tremendous advancements in biotechnology and pharmaceutical innovations, we are making excellent progress in the battle against chronic diseases such as cancer. However, there’s still much work to be done before we can find a cure. To that end, the biobanking industry could offer a practical solution.
Over the years, biobanking has evolved from simple biological sample repositories to a fully fledged network of valuable bio data. Audobon Biosciences, one of the most intriguing private investing opportunities listed on Microventures, is among a growing number of competitors in this groundbreaking market.
By collecting and storing diseased tissue samples, medical professionals are able to perform much more accurate diagnostics. Additionally, a biological data repository allows researchers to conduct critical analyses on various diseases.
Further, Audobon has an expansive network, with a presence in 12 countries and four continents. This broader scope enables greater insights, accounting for possible variances in differing demographics.
Finally, Audobon places a high priority on the ethical sourcing of biological samples — a core concern as the biobanking industry grows. To find out more about this innovative firm, please visit Audobon’s equity crowdfunding prospectus on Microventures.com.
Equity Crowdfunding Offerings to Buy: SurfUp
Having lived in southern California most of my life, I suppose it’s obligatory to at least attempt to surf once in your life. So I did — and I learned that the sport is much more difficult than it looks. Plus, I keep hearing the soundtrack to “Jaws” in my head so it’s not my ideal form of recreation.
Nevertheless, it’s a huge market for everyone else. Industry forecast suggests that the U.S. equipment rental market could hit just under $60 billion by 2024. Further, high-profile beach towns across California attract tourists by the boatload.
However, in the post-pandemic era, there will be many people who are worried about contracting an infectious disease. Fortunately, SurfUp has a ready-made solution. Utilizing an app, end-users can rent equipment like surfboards at contactless kiosks. Simply pay through the app and unlock hours of worry-free fun.
Essentially, SurfUp is a transitional platform as we navigate the new normal. Additionally, it’s accretive in that it can drive up revenue from customers who may want to go out and enjoy the outdoors but are afraid of person-to-person contact.
To learn more about this fun but necessary private investing idea, please check out SurfUp’s company prospectus.
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