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.
Comparatively, 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.
- HighSchoolResponder LLC
- Correlate Health
- Bold Conscious Leaders
- The Smart Tire Company
Now, let’s dive in and examine each one.
Equity Crowdfunding Offerings to Buy: HighSchoolResponder LLC
While the most popular equity crowdfunding opportunities tend to focus on technological innovations, the opening of private investing offers facilitates exposure to worthy causes. One such example is HighSchoolResponder LLC, a rapid response communication app for young students suffering from mental health and physical safety concerns.
Listed on the Netcapital website, HighSchoolResponder is easily one of the most relevant and pertinent ventures. As you know, going through adolescence is a difficult transition. Combine that with the social pressures involved with high school, and you’re talking about a potentially combustible mix.
Furthermore, social media exacerbates this tension. Nowadays, bullies can film their actions against their victims — compounding the pressure that prior generations of high schoolers never experienced. As well, researchers are noting a surge in depression resultant from the novel coronavirus pandemic. Naturally, this has negatively impacted high school students, with the academic world witnessing mass-scale disruption.
HighSchoolResponder speaks to this growing crisis, providing crisis management and rapid-response solutions. In addition, the platform enables early intervention and action, helping students before they find themselves in extreme straits.
It’s an uncomfortable topic, sure, but it’s one that we desperately need to address. You can help by visiting HighSchoolResponder LLC’s investor prospectus and consider supporting this organization.
If you thought that healthcare was confusing from the outside looking in, it may be just as bad from the inside looking out. According to a 2013 poll, “92% of residents reported that clinical documentation obligations are excessive, and 73% of residents reported compromises in patient care by these requirements.”
Furthermore, “Among internal medicine residents surveyed in 2006, two-thirds reported spending more than 4 hours daily on documentation, while only one-third recounted spending this amount of time with patients themselves.” And due to the Covid-19 crisis, this paperwork battle has only increased in scope, necessitating a better approach.
Correlate Health, another equity crowdfunding offer on Netcapital, may be the solution the healthcare industry is seeking. Combining the latest advancements in cloud computing and business intelligence software with the blockchain, Correlate Health eases the administrative burden in the healthcare system by providing an interoperable platform that all medical professionals can access to provide better care.
In addition, individual medical data is organized neatly into every patient’s account, facilitating knowledgeable care and superior outcomes. This is especially important during this pandemic because patients with underlying conditions are at highest risk. Correlate Health’s innovation alerts medical professionals regarding individual patient data, enabling them to take decisive, lifesaving actions.
To find out more about Correlate Health, check out its pitch deck on Netcapital.com.
Equity Crowdfunding Offerings to Buy: Bold Conscious Leaders
One of the more intriguing industries to pop up is life coaching. By the end of this year, the U.S. market size for life coaches is projected to hit $991.5 million, according to data from IBISWorld. While that may seem impressive, the coaching industry obviously took a hit due to the coronavirus pandemic. Hence, the annualized growth rate of this market is a forecasted loss of 1.8% between 2016 through 2021.
However, this doesn’t quite tell the whole story. For one thing, the pandemic is a one-off issue. We’ve already seen a significant bounce back in other industries due to pent-up demand. The same could easily happen for the life coaching industry.
More importantly, current life coaches tend to be older. As baby boomers retire, this will invariably lead to a decline in the overall market. However, older millennials are now approaching an age where they can legitimately make an impact — after all, would you take life advice from a 20-year old? Probably not.
This is where Bold Conscious Leaders steps into the picture. Armed with the tools to empower coaches with their entrepreneurial dreams, Bold Conscious Leaders provides a plug-and-play infrastructure to market their services globally. In addition, it provides key administrative support, such as accounting, legal and insurance services.
To learn how you can participate in this equity crowdfunding opportunity, check out Bold Conscious Leader’s investor prospectus on Netcapital.com.
Everyone knows that buying a new car is financially disadvantageous due to the instantaneous hit that depreciation imposes as soon as you drive off the dealership lot. This is the key reason why many savvy consumers prefer buying a gently used and reliable car — the first owner took the brunt of the depreciation hit for you.
However, even taking this into account, car ownership is incredibly wasteful. That’s because most cars are parked 95% of the time. Yet you still have to pay 100% of the bill every month, along with other associated costs like insurance. It’s a hassle which is why many millennials prefer subscription-based services that allow them to enjoy certain luxuries without dealing with the ownership hassles.
Unlo, listed on the WeFunder equity crowdfunding platform, perfectly steps into this gap for the automotive market. Rather than buying a car and committing to it for years on end, subscribers can drive off in a luxury vehicle through an on-demand platform, essentially only paying for the miles driven. This makes the process of having access to a vehicle much more reasonable and efficient than owning a high-end luxury car.
Plus, millennials are more likely to consider subscription-based services than prior generations. Therefore, Unlo really speaks to youth culture. For more information, please check out the company’s investor prospectus on WeFunder.com.
Equity Crowdfunding Offerings to Buy: The Smart Tire Company
Although we currently enjoy major advancements in automotive technology — whether that is based on the internal combustion engine or the electric motor — what hasn’t changed much fundamentally is the tire. Don’t get wrong — today’s tires are much safer and more resilient than before. However, we’re still using air-based technology.
The problem with this is that air always leaks out. On a performance level, this silently drains efficiency from our vehicles. Moreover, when tires go flat, it may create a hazardous situation — and that doesn’t just apply to the immediate effect. Rather, what if your tires go flat in a shady side of town?
Also, tire waste is a huge environmental dilemma — something that driving an electric vehicle won’t automatically solve. But that’s also where The Smart Tire Company offers a smart solution.
Featuring an airless design using space-age materials from NASA, these Smart Tires can carry incredible weight loads without the risk of deflating. Further, the company claims that they can last the entire life of a vehicle. This is especially beneficial because tires have a lifespan and they must be replaced, irrespective of their use.
To learn more about how technology is rapidly changing the holistic picture of transportation, check out The Smart Tire Company’s equity crowdfunding offer on WeFunder.com.
Out of the equity crowdfunding offers for this week, I’m personally most interested in Joolez. Listed on the MicroVentures private investing platform, Joolez is a fine jewelry marketplace which matches customers to the ideal diamond engagement ring using artificial intelligence.
On the surface, that sounds like a mixed bag. For instance, we all know that buying an engagement ring is one of the most stressful events for the hopeful suitor. You really have to know who your significant other is and what they prefer. Getting it wrong could lead to an embarrassing situation, to say the least.
But on the other end, using AI may seem like a copout. Certainly, it’s a tough conversation to say that you let a robot do your shopping for you rather than coming from your heart. That’s also a tough conversation, perhaps even tougher than getting the whole thing wrong by yourself (at least you put in the effort in this case).
However, here’s why I think Joolez has the upper hand. Buying an engagement ring is stressful not just for the personal pressure of getting it right but also because you must deal with aggressively opportunistic salespeople. A common tactic: if you really love her, you wouldn’t think about the price tag.
I find such tactics disgusting. Joolez takes that element out of the picture, making it a worthwhile private investing venture. To learn more, check out its pitch deck on MicroVentures.com.
Equity Crowdfunding Offerings to Buy: PLLAY
Earlier this year, I covered PLLAY, which I described at the time as a “peer-to-peer video game wagering app that lets anybody (who meets legal age and jurisdictional requirements) compete head-to-head for cash. By connecting to Twitch, the app monitors gameplays and objectively determines winners of said competitions.”
Further, I stated that “PLLAY’s proprietary artificial intelligence protocol facilitates quick payouts and curbs cheating. It also has safety features to prevent underage players from participating. Thus, the company is responsibility and entertainment rolled into one.”
I had a feeling that PLLAY would be a big winner. Experts forecast that the global esports industry will hit nearly $1.6 billion in 2024. The advantage for PLLAY is that it allows anybody — amateurs and professionals alike — to engage in wager-based competition.
Sure enough, the company recently announced that it secured an additional $1 million in an oversubscribed seed round. Further, new matches on the PLAYY app increased by tenfold. Also significant is that new registered users doubled and average wager size per match increased to over $20.
Best of all, this equity crowdfunding opportunity is still open on the MicroVentures platform, with a minimum investment of $100.
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