Given the popularity of initial public offerings, particularly the latest craze over special purpose acquisition companies (SPACs), it’s clear that investors are looking for big returns.
And they recognize that the best opportunities come from ground floor opportunities. For that, you need to look beyond the capital markets and into the world of equity crowdfunding.
Historically, private investing ventures would expand their operations through fundraising from venture capitalists and other institutional players. With just a few home runs, a small enterprise can accrue the funds they need to eventually launch an IPO. But as with most anything, going for the fences is a rare occurrence. You have better chances of success with “small ball,” which is where equity crowdfunding shines.
As the name suggests, rather than appealing to one or a few major backers, equity crowdfunding campaigns appeal to the public at large. Thanks to favorable legislation, the process is perfectly legal, though subject to certain regulations. And crowdfunding is a win-win. The startup gets its money to build its business. And the investor has a chance to generate massive profitability, especially if the startup goes public.
To be sure, nothing in the world of investing — equity crowdfunding or the global capital markets or anything in between — is without risk. Before taking the plunge into the private investing realm, you should know that 90% of startups fail. Therefore, you should only put down money that you are comfortable losing.
Still, what keeps people coming back time and again is the upside opportunity. Yes, incredible risks exist in private investing. But the rewards are equally outsize.
With that in mind, here are 7 equity crowdfunding opportunities to consider this week:
- Kehei Traveler
- Genius Juice
- Benson Watch Company
Above all else, perform your due diligence. Reading articles about private investing is not due diligence. Get to know some of the companies that intrigue you and make sure to ask plenty of questions. So without further ado, here are the equity crowdfunding offers to put on your radar.
Equity Crowdfunding You Should Invest In ASAP: Kehei Traveler
Is it really safe to fly during the novel coronavirus pandemic? That’s the burning question frequent flyers are asking, whether they admit it or not.
Sure, air passenger volume has rapidly improved over the past few months, with some daily stats suggesting that volume is now 60% to 70% that of pre-pandemic levels. Nevertheless, fears remain and confusing medical advice don’t help matters.
For instance, one medical expert suggest that during air travel, the risk of Covid-19 “is lower than from an office building, classroom, supermarket or commuter train.” Further, research from MIT Medical suggests that we’re exaggerating the actual risks.
Still, MIT Medical also stated that “Even with appropriate precautions, a relatively short domestic flight still carries moderate risks and should not be undertaken lightly.” Hence, I believe that Kehei Traveler maintains everyday relevance.
An equity crowdfunding offer listed on the Netcapital platform, Kehei Traveler provides a lightweight, compact and disposable seat cover for airplanes. Designed for you to put on and take off with ease, what this product really specializes in is ease of mind.
Yes, there is absolute science in putting a protective barrier between you and a (possibly) contaminated surface. But the sales value stems from psychology — and it’s a powerful catalyst for millions of Americans who are obviously worried about air travel.
To learn more about this private investing offer of our times, head on over to Kehei Traveler’s pitch deck on Netcapital.com.
Offering discounts is one of the most effective means that businesses have of bringing customers to the doors. Especially during the time of Covid-19, it’s more crucial than ever to spark momentum in foot traffic. As the Houston Chronicle’s Small Business section notes:
“Offering discounts on purchases is a way to quickly draw people into your store. Anytime you tell a customer that he can save money, you’re likely to get his attention. Discounts don’t only help your shoppers; they also help your business. From increased sales to improved reputation, discounts may be that one ingredient that can bring business success.”
But significant challenges exist. Offering deals is expensive, especially for small businesses. Often times, deals influence a customer to come in once and that’s it — no repeat business. This dynamic tends to get costly over time. Moreover, the various deal provider platforms don’t speak to each other, making the process overly complicated for the entrepreneur.
That’s where Dashible steps up to the plate. Featuring a comprehensive integrated deals and loyalty platform, Dashible provides constant 360 engagement, from attracting new customers, keeping current ones on board with custom deals and providing business owners with actionable insights through artificial intelligence and big data protocols.
Best of all, entrepreneurs can set up Dashible in minutes, providing everything they need under one umbrella. To find out more, head on over to Dashible’s company profile on Netcapital.
Electric vehicles and other forms of alternative-fueled transportation are all the rage these days. But one of the biggest hurdles to mass adoption is their cost.
Sure, you have federal subsidies but those don’t provide a permanent solution. Additionally, you’d have to drive quite a while before you break even with an electric vehicle that offers the same features as an equivalent combustion-based car.
Here, Berylline takes a different solution by offering three-wheeled hybrid and electric scooters and hybrid golf carts. Through this format, Berylline is able to offer the conveniences and eco-friendly nature of electric and hybrid solutions while keeping costs very reasonable. That’s all the more important when you consider that Berylline is targeting baby boomers.
Now, the common retort is that scooters don’t offer the convenience of a roof over one’s head. But here’s the thing — baby boomers are moving closer to where their adult children live. And that typically means warmer weather. Therefore, having an open-air scooter wouldn’t be as much of a drag as you might think.
To find out more, please check out Berylline’s investor prospectus on Netcapital.com.
Beverages are a hard business segment to succeed in and that fact isn’t lost on the venture capitalists featured on ABC’s Shark Tank. Alex Bayer, founder and CEO of Genius Juice, an equity crowdfunding offering listed on Republic, found that out the hard way. Nevertheless he persisted, ultimately securing a deal with Barbara Corcoran and Mark Cuban.
What was impressive to me was the panel’s rave reviews for Genius Juice. Corcoran herself mentioned that she would never invest in a beverage startup but changed her mind when she tried Genius Juice’s delectable offerings. Featuring smoothies that are 100% organic coconut but with 40% less sugar content than coconut water, this company’s juices are vegan and paleo friendly but taste like they’re not.
Further, the timing for this private investing startup couldn’t be better. Aside from EVs, consumers are clamoring for plant-based food and beverages. For one thing, millennials take extra effort to incorporate a plant-based diet into their everyday routine. Given that they also represent the largest demographic in the U.S. workforce, their opinions matter.
Plus, people of all ages recognize that sustainability is a serious concern. With everyone doing their part, no matter how small, we can impart a positive impact on our surrounding environment. To learn more, check out Genius Juice’s pitch deck on Republic.co.
Benson Watch Company
One of my friends is a timepiece connoisseur. So when I told him that I was thinking about a particularly popular brand — I won’t name to spare my inbox — he stopped me. While he recognized that the brand had strong public appeal, at its core, the company actually doesn’t make good watches. Instead, it merely leverages its reputation.
I’ve been turned off on the brand ever since I heard that — and confirmed it through my own research. As it turns out, several popular watch brands are not exactly what you think they are. Therefore, there’s a surprisingly large opportunity gap that newcomers to the timepiece space can fill. One of them is the Benson Watch Company.
Recently, the New York Times featured Benson Watch, primarily for advancing the #BuyBlack movement and bolstering economic vitality for entrepreneurs of color. And you know what? Benson is wildly successful, thanks to its direct-to-consumer business model, classic motifs and architecture, high quality and excellent value. Benson’s watches sell in the low triple-digit range.
The price point is especially beneficial because young people should have multiple watches to accentuate their professional attire. With the market for high-paying jobs incredibly tight, any little advantage helps. To learn more about this equity crowdfunding offer with holistic substance, visit Benson Watch’s investor prospectus on Republic.co.
Many years ago when the ride-sharing phenomenon began exploding, I was skeptical about the idea. Sure, the concept of generating value on unused space is a very attractive one. For instance, every time we commute to work alone, we’re typically leaving about four seats that go to waste. Further, most cars sit parked, yet your car payments don’t care about that.
But transportation specialists must own licenses before they can operate. If you think about it, with ride sharing, you’re taking serious risks. However, when I first signed up for Uber (NYSE:UBER), I was hooked. Particularly, I found Uber especially useful in international areas, where negotiating as a foreigner can be fraught.
Still, one factor that stymies progress in ride sharing is price. That’s where Obi, another equity crowdfunding offering on the Republic platform, comes into the picture. A one-stop shop for ride-sharing apps, Obi first makes life easy for you by comparing different apps and services via one centralized location. From there, you can pick the service-price combination that best suits your needs.
Further, you might run into a situation where certain providers lack coverage at that moment. With Obi, you find available rides irrespective of their underlying platform. Plus, with variable pricing creating havoc for consumers, Obi is one of the most consumer-friendly apps for the next generation. To find out more, check out its private investing details on Republic.co.
Usually, startups procure the services of equity crowdfunding specialists like Netcapital or Republic to list their private investing offerings. And for the most part, it makes sense to do this. Companies like Netcapital and Republic generate tremendous weekly traffic, attracting prospective buyers seeking the next big thing.
Of course, you also have folks like me who seek out these intermediaries to also look for and report on potentially viable opportunities. But startups can also go “direct-to-consumer” with their equity crowdfunding campaigns, and that’s exactly what RYSE has opted to do.
An Internet of Things company, RYSE focuses on manufacturing smart devices that automate window shades. Its flagship product is the SmartShade, which is a complementary technological solution that enables automated controls for the window shades that you already own and love. This makes RYSE’s products exceptionally cost effective, especially for those who purchased their homes in this crazy real estate market.
Better yet, RYSE enjoys strong, defensible intellectual property, with four issued patents and three that are pending. These have been filed in the U.S., Canada, the European Union and China.
Finally, experts in the field believe that the smart shades product category has double-digit compound annual growth rate potential. If so, RYSE may make for an excellent takeover target by some of the automated services’ biggest names.
To learn more about this opportunity, head directly to RYSE’s website.
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