Equity crowdfunding can offer opportunities to investors that combine a lot of advantages, such as early investment in the best startups, companies that need capital to grow and mature. The rewards can be significant, but risks are high too and due diligence is required before deciding to invest in startups.
Not all startups are the same. But here are seven of the best ones to consider now buying on the StartEngine (OTCMKTS:STGC) equity crowdfunding platform. Further due diligence is required to analyze if these startups are a good fit for your investment profile, and risk tolerance.
But the prospects of these startups are promising providing interesting investment opportunities in several sectors, adding diversification benefits to your portfolio.
7 Best Startups You Can Buy on StartEngine Right Now
- 20/20 GeneSystems, Inc.
- xCraft Enterprises, Inc.
- Elephant Craft Hard Seltzer
Best Startups: 20/20 GeneSystems, Inc.
20/20 GeneSystems is a digital diagnostics company, and investing in this one could help save lives. The company’s core mission is to reduce cancer mortality in the U.S. and around the world through early detection. Due to the global pandemic, Covid-19 testing solutions have been added to the test menu of the company. It’s a compelling investment, and its year-over-year revenues increased by more than 600%.
Revenue growth is not the only criterion to base your financial analysis, but it is a good financial metric that gives confidence to your potential investment. The global cancer diagnostics market is huge. It was valued at $7.1 billion in 2015.
The early detection of cancer can save lives. 20/20 GeneSystems has raised $2.16 million from 2,178 investors. The minimum investment is $501.60 and the valuation is $38.5million.
Best Startups: xCraft Enterprises, Inc.
xCraft designs and manufactures customized, unmanned aerial systems both for enterprise and the military markets. Why not invest in a small team that might change the world? The company has gained traction and support from all 5 celebrity Shark Tank investors with a deal worth $1.5 million and has been featured on major and well-established websites such as VentureBeat, Inc.com, Techcrunch, Fortune. But this publicity is not just a marketing strategy. There’s a ton of value here.
xCraft develops technology that is helping power the future of autonomous flight. Drones are not just for fun. On the contrary, drones and their applications, business solutions are a very large addressable market. The global urban air mobility (UAM) market for example is projected to reach $86.83 billion by 2035.
When you factor in the military drone market, with an estimated value of $21.76 billion by 2026, business prospects look stellar for xCraft.
The company has raised about $2.6 million during this equity crowdfunding round and previous offerings, from 488 investors. The minimum investment is $351.90 and the valuation is $35 million.
Graze makes fully autonomous electric lawn mowers that are safe, and can provide innovation to the landscaping industry. How? By reducing high fuel and labor costs, and also creating a safer worksite by lowering operator injuries. Graze says that its full-electric vehicle reduces 75% of any fuel costs, a significant amount of cost related to commercial lawn mowers.
The landscaping industry market is estimated at $100 million and faces several challenges. Commercial lawn mowers are one of these challenges, applicable to large areas such as golf courts. Graze uses a technological mix of machine learning, navigation technology and safety sensors to its fully autonomous electric lawn mowers so that they can detect obstacles, execute mowing plans and gather data for effectiveness and precision.
The U.S. commercial landscaping industry has both high labor costs and low margins. Graze provides a solution to it, providing the lawnmower of the future. What about traction? The company has raised so far about $5.2 million from 1206 investors.
The minimum investment is $498.80 and the valuation is at $23 million.
Social media is a mixture of fun and entertainment, but it can also mean business. Fanbase is a new subscription-based social network that is helping users make money. How? By monetizing their content, allowing users to earn revenue, while at the same time increasing authentic user engagement. In social media, having 1 million followers without engagement in your posts is no use at all. But if there is an engagement rate that shows interaction, then monetizing your social media account can become a lucrative business.
Fanbase offers a solution to creators to monetize their content based on a combination of monetized content, consistent monthly revenue and authentic user engagement. The subscription content market in many of its forms, video, music, content and last but not least gaming market generated $28 billion in 2019.
Fanbase has raised about $2.7 million from 5,552 investors. The valuation is at $20 million and the minimum investment is $256.00.
Epilog is about machines and how they see the world. Confused? The company has made a breakthrough digital vision technology with human-level image quality providing solutions to markets such as driver assistance, queue management and remote inspection. Does self-driving AI sound like an option you would fit with your next car? If you answered yes, then Epilog may be a good fit for you.
According to the company, its “products are ready to address multi-billion dollar markets with an estimated 10-year cost-performance lead over the competition.” The human-level AI vision system is cost-effective for adoption in mass markets, such as the automotive industry providing driver assistance technology.
Epilog has raised about $1.8 million so far from 794 investors. It has a valuation of $21.2 million and the minimum investment is $250.60.
WiGL is another technology company that is raising money by offering something innovative, long-distance wireless power. It wants to solve the problem of depleting battery in your cell phone providing wireless power. Sounds interesting?
Imagine getting wireless power in the same way you get a wireless wi-fi connection to perform tasks for business and personal use. Charging your phone when you are on the move, and in need of extra battery use. This addresses the need for infinite mobility.
The wireless charging solutions market was valued at $6.51 billion in 2018. It is estimated to grow fast to $40.24 billion by 2027.
WiGL has developed a fully powered, fully wireless solution to power your devices on the move. With a focus on security, clean energy and efficiency this is a solution to the limited autonomy of modern mobile devices. The company states that “The wireless and wired charging solutions market is estimated to grow to $25 billion in 2022.” So there is plenty of growth prospects.
The company has $2.72 million from 2,655 investors, having a valuation of $56.1 million.
The minimum investment is $249.57.
Elephant Craft Hard Seltzer
“Harder, healthier, happier” is the motto of Elephant Craft Hard Seltzer, a company that makes hard seltzers with high-quality, real ingredients. The hard seltzer market produced $4.1 billion in 2020 and the growth of this market is expected to be significant over the next years. It is estimated to reach $30 billion by 2025.
Elephant Craft Hard Seltzer focuses on authenticity, flavor and innovation. The hard seltzer products made by the company are healthier, made with only real ingredients.
Does the mission of the company’s making the world a happier place fascinate you? The company is giving 1% of all profit to support wildlife preservation. With plans of dominating the hard seltzer market, there are six flavor offerings for a 2021 launch. The company projects to be at a 22,000 bbl/year run rate by the end of 2021 and a 95,000 bbl/year runway by the end of 2022.
High ambitions to drive globally positive impact? It seems an interesting one. The company has $64,843 from 61 investors, having a $7 million valuation. The minimum investment is $200.00. The numbers sound small, but this could be the early stage of a global business expansion.
All these seven startups on StartEngine seem very promising. Further due diligence is suggested before investing in these startups, though, as in any type of investment.
On the date of publication, Stavros Georgiadis, CFA, did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Stavros Georgiadis is a CFA charter holder, an Equity Research Analyst, and an Economist. He focuses on U.S. stocks and has his own stock market blog at thestockmarketontheinternet.com/. He has written in the past various articles for other publications and can be reached on Twitter and on LinkedIn.