Editor’s Note: This article on equity crowdfunding is regularly updated to bring you relevant, up-to-date information.
One of the reasons why special purpose acquisition companies, or SPACs, have garnered intense popularity recently is that they allow retail investors to participate in a market opportunity before the rest of the crowd. By buying a SPAC before its merger announcement, regular folks can speculate ahead of a potential bullish wave. But there’s another chance for extreme profitability and that’s through equity crowdfunding.
Thanks to favorable legislation under former President Barack Obama’s administration, private investing participation is now open to retail investors. Prior to the change, such ventures were only available to institutional investors and well-connected sophisticated private individuals with deep pockets. Now, anybody can participate in equity crowdfunding, giving the regular Joe a fighting chance at building wealth.
The benefit to the individual investor is obvious. First, participating in a traditional initial public offering (IPO) is often unfavorable due to the IPO pop phenomenon; that is, new shares of hyped-up companies tend to fly higher on the first day of trading relative to their initial offering price. On the other hand, a pre-merger SPAC carries significant risks because you don’t know what deal the SPAC sponsor has in mind.
Equity crowdfunding provides a happy medium where companies can make their pitch to everyday capitalists on private investing platforms. If the business is compelling enough, the startup enterprises will accrue the funds they need to expand and hopefully go public. If so, you could be on the ground floor of the next big thing. Will these companies hold the key to upside success?
- Jane West
- Timed Health
- AI Power Racing
- Brownrigg Hard Cider
Before you pull the trigger, you should be aware that 90% of startups fail. That’s not meant to impugn the above companies or the equity crowdfunding sector — it’s just reality. So, perform your due diligence, ask questions of the offering companies and never invest more than you can afford to lose.
Equity Crowdfunding: Myro
A key factor that separates millennials from prior generations is that they’re much more attuned to environmental concerns. And that’s not just a meaningless anecdote. Study after study confirms that millennials and Gen Z are willing to pay more for products that are environmentally sustainable.
What’s curious, though, is that a huge opportunity gap exists for products that are both sustainable and healthy for personal use. We care so much nowadays about whether a shampoo has been tested on animals but we don’t think as much about putting the product on our hair. As it turns out, mainstream beauty and personal care products contain an alarming number of toxic chemicals and contaminants.
Fortunately, Myro has the perfect answer for this growing dilemma. A personal care company listed on the equity crowdfunding site Republic, Myro specializes in refillable plant-based deodorants. Filled with all-natural ingredients, the beauty behind this innovative firm is that the product gets the job done while also being humane and eco-friendly.
As a refillable product, you don’t need to keep buying new packages. That, too, helps mitigate the massive landfill problem that’s plaguing our society. Indeed, you can say that Myro is a comprehensive ESG (environmental, social, governance) private investing offer. To learn more, please visit its company profile on Republic.co.
Cannabis is a huge business and is only about to get bigger based on favorable legislative momentum and public sentiment. According to the Pew Research Center, two-thirds of American adults support marijuana legalization. Basically, this is a paradigm shift from two decades ago when sentiment was flipped.
A significant reason for the positive change is the rise of cannabidiol or CBD. By having little to only a legal trace amount of the psychoactive compound tetrahydrocannabinol (THC), folks can enjoy the benefits of cannabis without its less-desirable effects.
Still, a stigma remains over any type of cannabis product. However, Jane West, another equity crowdfunding venture on the Republic platform, seeks to adjust this narrative. Focusing on premium-quality CBD and hemp products, Jane West offers a holistic range of products, from your typical vaping and smoking products to everyday commodities that people use and consume, such as deodorant and coffee.
Likely, due to the impact that the novel coronavirus has had on our society — disruption to sleep being a particularly conspicuous one — many Americans will be looking to CBD for natural solutions. Jane West is an approachable, trusted brand that is poised to deliver. To learn more, check out the company’s investor prospectus.
We all love salt. Frankly, you can make anything taste a whole lot better with salt. Sure enough, Americans consume a ton of it, on average about 3,400 milligrams daily. But according to the Food and Drug Administration, we should only consume less than 2,300 mg per day.
This, of course, is a killer temptation. Excess salt consumption can lead to health problems down the line, such as hypertension. And it violates common sense — as the saying goes, moderation in all things. That includes salt consumption, which is a tough dietary addiction to kick.
For you salt lovers, though, you shouldn’t despair, as MicroSalt is here to save the day. An equity crowdfunding play listed on MicroVentures, MicroSalt stands out among other private investing opportunities because its core product really speaks to all of us.
If health were no concern, we’d douse our fries in salt. I’m not saying you should do that with MicroSalt’s powdered salt particles. However, pound for pound, they deliver the same salty flavor but with 50% less sodium. Finally, you can have your cake and eat it too!
As well, MicroSalt sells its own branded potato chips called SaltMe! With the health consciousness of millennials, this brand could really take off. To learn more, head on over to MicroSalt’s pitch deck on MicroVentures.com.
While it’s tempting to view medical problems as individual challenges, collectively, their impact filters out to the rest of the economy. For instance, according to the American Diabetes Association, the estimated total economic cost of diagnosed diabetes in 2017 was $327 billion. This was up 26% from the organization’s prior inflation-adjusted estimate.
Further, an acute impact can cause problems with the medical supply chain, leading to difficult rationing. We got a big glimpse of that last year during the Covid-19 disruption, which we’re still working our way out of. Clearly, we need a better solution to our healthcare supply chains and that’s where Timed Health enters the frame.
Listed on the Netcapital equity crowdfunding platform, Timed Health utilizes advanced artificial intelligence (AI) to help medical doctors predict when patients will need certain medication. Primarily, this enables better health outcomes for the patient, which of course is the whole point of healthcare.
But on a broader level, Timed Health has massive positive potential. Through predictive analytics, medical professionals can better streamline medication, helping to prevent unnecessary supply chain issues. At a time where the U.S. health infrastructure is seeking ways to minimize its vulnerabilities, Timed Health is incredibly relevant. To learn more, head on over to its investor prospectus on Netcapital.com.
AI Power Racing
As we just discussed above, artificial intelligence plays an increasingly important role in our industries and infrastructures. AI may very well be the future, which is the reason why the U.S. is engaged in a technology cold war with China. The only problem? We’re falling behind.
According to the testing results from the 2015 Programme for International Student Assessment, the U.S. ranked 38 out of 71 countries in math and 24 in science. These might be solid scores for a smaller country, but they are hardly congruent with our status as the lone superpower. We’ve got to do something, but what exactly should we do?
AI Power Racing, a smaller equity crowdfunding offering on the WeFunder platform, may have the solution. Rather than bombard young students with AI and other technology curriculum filled to the brim with static, boring concepts, AI Power Racing offers an engaging platform that blends entertainment with education.
The premise is learning with purpose. Through the AI Power Racing platform, students learn various AI-related content. As they develop their knowledge and skills, they compete with their friends and other parties via an autonomous car simulator. That way, there’s actually a reason for putting in the effort to be educated. To find out more, check out AI Power Racing’s pitch deck on WeFunder.com.
Dementia is one of the most dreadful diseases, with five million in this country living with the age-related version of this condition. Even more, it’s not just terrible for the patient but also their family and caregivers. For instance, it’s not uncommon for dementia sufferers to repeatedly call their friends or family due to the rapid decline of their short-term memory.
Also problematic are nefarious actors who prey upon the elderly. Unfortunately, it happens all the time. Further, with the global economic disruption caused by the Covid-19 pandemic, you can expect more of these disgusting crimes to occur.
This is why teleCalm is so important. Another private investing offer listed on the WeFunder platform, teleCalm uses an AI system to control conversations that are outbound and inbound. If a dementia patient calls a family member in the wee hours of the morning, the teleCalm service evaluates the reason for the call. If it’s a non-emergency, the call is not allowed to pass through.
Just as importantly, the teleCalm system prevents incoming calls, particularly from telemarketers and scam artists looking to advantage someone in their distressed state. This provides holistic protection for both the patient and the caregiver. To learn more, please visit teleCalm’s company profile on WeFunder.com.
Brownrigg Hard Cider
As I mentioned earlier, the key factor that separates millennials from other demographics is that their consumer behavior and preferences are much different from that of prior generations. This has caused retailers and marketers many headaches, particularly in the fashion and apparel industry. But get it right, and there are opportunities waiting.
For example, millennials have a different take on adult beverages than Baby Boomers. Increasingly, young consumers are eschewing beer for hard cider. Most significantly, cider consumption is a gender-equal trend, especially among young drinkers. This dynamic sets the stage perfectly for Brownrigg Hard Cider.
The final equity crowdfunding offer on this list, Brownrigg Hard Cider is a relatively small beverage brand that’s attuned with the millennial consumer. Featuring both compelling branding and extraordinary flavors, Brownrigg has generated serious momentum.
Based on its pitch deck, the company’s taproom sales are up 37% in 2020. Further, combined yearly retail and wholesale revenue increased 173% in 2019. As well, its popular SODO taproom is located about a half-mile from the Seattle Seahawks, Mariners and Sounders stadiums. Once America fully reopens, Brownrigg stands poised to accrue pent-up demand.
To check out the opportunity for yourself, visit Brownrigg’s investment profile 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