Startups are a great way to invest in companies engaging in innovation with a bold vision, and although they presently lack the capital to grow, they have the potential to become leaders in their sectors. StartEngine (OTCMKTS:STGC) is an equity crowdfunding platform with some impressive numbers to consider. Over $350 million has been raised to date with more than 400,000 prospective investors and more than 500 offerings that have been successfully funded. In this article, I will mention the 7 best startups you can buy on StartEngine now.
I will use three main criteria. These companies are from diverse sectors, their funding campaigns are all currently in progress, and most of them have recently launched. You can be one of their very first investors, which is priceless for some investors. But this does not mean you should ignore the risks associated with investing in startups.
If these risks are ok with your investment profile, then take a close look at the following startups.
The 7 Best Startups You Can Buy on StartEngine Right Now
- Hardscoop Inc.
- Marshmallow Jetpack
- Simply Agave, Inc.
- Hylio, Inc.
- The Bitter Housewife
Equity Crowdfunding: Hardscoop Inc.
Hardscoop makes desserts for adults, but with a unique flavor. What if you combine ice cream and alcohol? The mission of the company is to make people happy. And this adults-only ice cream seems interesting– not just for its idea, But for its potential traction.
Here are three reasons to invest in Hardscoop:
- The revenue growth has doubled year over year for the past 3 years. Not bad.
- High quality. Hardscoop believes that the two things that make people happiest are ice cream and alcohol.
- A robust business model and opportunity for growth. According to the company “Direct-to-consumer (DTC) shipping of wine grew to $3.7 billion in 2020 which was the largest year-over-year increase ever 27%.”
If Hardscoop manages to create a new industry category then this alcohol ice cream could be a hit. But the traction is already significant. Hardscoop has sold to date over 110,000 pints and what is even more promising is the sales growth. Sales increased 108% in 2020 over 2019.
Hardscoop has raised $62,121 so far from 66 investors. The minimum investment is $280.00 and the valuation is at $13.1 million.
Equity Crowdfunding: Shacksbury
Shacksbury is a beverage company that is focused on the niche market for light adult beverages. In the past seven years, it has achieved several milestones, such as creating a national sales and distribution network. Plus it has a new production facility that can support the production of one million cases per year.
The company thinks there is plenty of growth in the “beyond beer” category and has not one but four brands. The Shacksbury Cider, Easy Wine, Fairweather Cider and Lo-Ball.
The reasons to invest in this company have to do with strong revenue growth, gaining collaborations with restaurants, and being in a growth market; the adult beverage market is expected to continue to grow by 30% year-over-year. Plus, it’s estimated to be a $5.9 billion market.
Shacksbury has already a strong distribution network in over 30 states. In 2020 it had revenue of $2.2 million. And by targeting values such as authenticity and innovation plus “wellness, innovation, great design, and a strong digital presence” the business model seems promising.
Shacksbury has raised $255,651 from 103 investors, and about $1.07 million from a previous crowdfunded round. The valuation is at $15 million and the minimum amount to invest is $497.76. Why not $500?
Equity Crowdfunding: Marshmallow Jetpack
Marshmallow Jetpack is a game studio with a very interesting approach to business. The gaming industry is very large. So what if there was a solution that could provide players with the ability to monetize the value of their in-game assets practically into the real world?
What this means is that Marshmallow Jetpack’s debut game, named Velkin Falling which is not yet currently available will combine NFTs (non-fungible tokens), blockchain and game design to allow players to fully own their digital goods in the form of non-fungible tokens, and even trade them on secondary markets generating a profit.
While this idea seems complex, it is also a clever and innovative. I had never heard of a business model that would combine video games with blockchain technology.
The Gaming and cryptocurrency industry are both witnessing growth According to the company the “video game loot box revenue is projected to exceed $20 billion by 2025, while the current NFT market is valued at over $2B.”
These NFTs will be owned by the player and can increase both demand and competition, providing an extra incentive to users to increase their purchases and for users who sell these assets to make money.
It seems that the crypto gaming market could well be a rapidly expanding market. The company has raised $70,490 so far from 84 investors. The minimum amount to invest is $250.00.
Equity Crowdfunding: Simply Agave, Inc
American cocktail drinkers may beware of one of the hottest new drink trends, mezcal margaritas. Simply Agave is a company that makes (surprise, surprise) Simply Agave, “one of the top-selling agave nectars in the US.” And the company will soon launch Lethal Mezcal, a new artisanal-crafted mezcal. Investing in a limited selection of quality mezcals on the U.S. market is a very niche market. But the potential could be rewarding.
The company has drawn its attention to already developing strong partnerships in the spirits industry and most importantly having an important market share in the fastest-growing spirits category. The key to success seems to be wide distribution, and Simply Agave is already having achieved that. Finding these drinks will be easy with a wide distribution channel resulting in boosting sales.
Sean Ryan, CEO of the company has vast experience in the consumer beverage businesses. Other members of the management team have plenty of experience too, and this means increased odds of business success.
Simply Agave has raised $12,018 from eight investors with a minimum investment of $584.35. The valuation is estimated at $18 million.
Equity Crowdfunding: Hylio, Inc
Hylio, Inc makes autonomous drones for providing precision agriculture solutions. Could it be an agricultural revolution? Hylio is in the spray drone business model, offering spray drones that can help farmers/producers solve problem areas related to crop treatments.
Why invest in Hylio? Hylio combines not just one but four markets. According to the company, the products or drones can be used in the Agricultural Equipment Market, in the Global Drone Market, in Agtech Market and of course in the Precision Agricultural Market. All of these markets are very large, and by large I mean worth billions.
Is there any traction yet? The answer is yes, as Hylio has customers in six countries, and sales have witnessed the growth of a year-over-year average rate of 347.25% since 2019.
The autonomous AgroDrone’s main benefits are that they can make precision agriculture both easy and accessible, and at the same time farmers and producers have at their hands a crop-spraying drone system that is extremely easy to use and reliable too. No need to learn how to fly a drone — its interface is too easy.
The valuable business solutions that Hylio drones offer are saving time and money for farmers by targeting problem areas with accuracy and effectiveness.
Hylio has raised $142,204 from 140 investors. The minimum investment is set at $199.50 and the valuation is at $35 million.
The Bitter Housewife
“Drinks shouldn’t have rules!” This is the motto of The Bitter Housewife, which makes small-batch and zero alcohol canned beverages. The no-alcohol market is also an expanding market. If you are looking for beverages made with whole ingredients and have no sugar or sugar substitutes, no caffeine, and no alcohol, then the Bitter Housewife may be the brand you are looking for. And this means an enticing equity crowdfunding investment opportunity with increasing sales.
Revenue from January 2020 to January 2021 has grown by 537%. And direct to consumer sales in 2020 increased 395%. Not bad.
What is worth mentioned too is the fact that The company has received numerous awards, thus creating a strong brand name.
A new trend seems to have arisen. According to the Bitter Housewife “ 52% of U.S. adults report trying to or already reducing their alcohol intake, and the global non-alcoholic market is expected to reach a record $1.6 trillion by 2024.” Even a small market share of this could mean significant sales for the Bitter Housewife.
With $115,331 already raised from 88 investors, you can invest in this company with a minimum investment of $500.00. The valuation is at $5.5 million.
The last company on this list of startups, BeerMKR, as its name implies, makes beer. “Craft Beer. Made Easy.”
Making your beer easily at home with a machine that handles the whole procedure from start to finish seems an idea to appeal to many beer lovers worldwide. With the beer market” worth over $100 billion domestic and $600 billion worldwide” according to the company, there is plenty of business opportunity.
Solving the problem of home brewing with an all-in-one home brewing machine is interesting. But for investors what matters is not just the potential, but sales. BEERMKR is already on market, and the company says that hundreds of units have been sold so far in 2021. Plus what is more exciting from an investment perspective is the fact that BEERMKR unit sales combined with MKRKIT sales can build a strong recurring revenue model and support long-term growth.
This recurring revenue model is something of special importance. Customers may buy once the all-in-one beer-making machine, but perhaps several times the MKRKITs which include everything you need to make quality craft beer at your home.
BeerMKR has raised $280,124 from 230 investors, and the minimum investment is set at $197.34. The valuation is at $18 million.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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.