StartEngine (OTCMKTS:STGC) is an equity crowdfunding platform where you can now find over 100 investment opportunities across several sectors. This can add important diversification benefits to your portfolio. The company has added a new trade feature that allows you to buy and sell shares with other investors on the platform, which adds the benefit of increased liquidity in stock trading.
The companies presented in this list are promising and innovative and seem like attractive investment opportunities. Whether you should invest in these startups will depend on your investment profile and risk tolerance, and as always, do your due diligence and learn more about these companies.
With all that in mind, here are seven interesting startups for your consideration:
StartEngine Equity Crowdfunding: Eli Electric Vehicles
One of the hottest trends today is the electrification of mobility and the dominance of electric cars in the future. If you want to invest in the next evolution of personal mobility, then Eli Electric Vehicles, the first equity crowdfunding option we’re looking at, may be the opportunity you are looking for. The company is making “advanced, efficient and affordable micro-EVs for daily short trips” and urban transportation. The Eli ZERO is currently under development with production expected in Q4 2020 and plans to sell in the U.S. and Europe.
According to Eli Electric Vehicles, “the market for micromobility in the US, EU, and China is expected to reach $320B market by 2030.” There are already partnerships with established manufacturers and major distributors, which will help the company quickly scale up and develop a wide network of global dealerships to boost sales. The company describes itself as having a “world class team of designers, engineers and supply chain professionals with know-how and experience building golf carts, vans and EVs.”
The Eli ZERO model is a compact car classified as a NEV (Neighborhood Electric Vehicle) trying to fit in the market. As cited by Eli, in U.S. cities 75% of car trips are under 10 miles, making these micromobility vehicles potentially very enticing. This small electric car offers the advantages of an energy-efficient, versatile and affordable electric vehicle with a price of $12,000 designed for solving traffic and parking problems in modern cities.
Eli Electric Vehicles has raised $1,296,942 from 1,424 investors. The minimum investment is set at $250, and the valuation cap is $18 million.
How do you disrupt the massive trillion-dollar building construction market? Boxabl is trying to answer that question.
The flagship product is called the Casita. It is a small room module measuring 20 feet by 20 feet, fitted out as a studio apartment providing a low-cost shippable guest house. The Casita is an out-of-the-box, fast, easy, innovative product trying to disrupt the housing industry. It is customizable to fit your life and is affordable too, as it is expected to sell for $50,000.
The company promises that you can setup a Casita in your backyard in less than a day, or build it almost everywhere with ease, as it offers all the required amenities for comfortable living. This small house includes essential utilities including a washer and dryer, kitchen features like a fridge and stove, a bathroom, an HVAC and more.
The mission is to “significantly lower the cost of homeownership for everyone.” The company promises that their standards of quality, strength and sustainability will allow their structures to last for generations.
These building modules (currently in the pre-production phase) are easily shippable, factory manufactured and customizable. Is there traction yet? With already over 20,000 reservations for the product and approximately 2,000 paid deposits, the answer seems to be yes. It is notable to mention that the U.S. government is an initial customer with an order of about $9.2 million. The company is currently launching a 170,000 square foot factory with the capacity to produce thousands of easily shippable homes and potentially millions in revenue.
Boxabl has raised $3,915,983 and $1,070,000 from a previously crowdfunded campaign. The minimum investment is $499.84 and the valuation is $226 million.
StartEngine Equity Crowdfunding: Flower Turbines
Flower Turbines make sleek, innovative, efficient small wind turbines. The company’s main goal is to make those turbines the foundation of a large global renewable energy company. It has also begun an expansion into e-bike charging. But why invest in renewable energy?
The answer is simple: there is wind everywhere. Small turbines can be installed anywhere from office buildings to parking lots. The company hopes to make wind energy accessible to everyone.
The company was ranked as one of the most fundable companies in America in 2020. As the company explains, “Pepperdine University Business School picked 20 out of 4500 companies as the Most Fundable Companies in America after an intensive review of the people, financials, and business plan, followed by interviews and background checks. After that, the public was asked to vote for their favorites, and Flower Turbines was in the top 3.”
The company is offering a solution to evolve the small wind sector. It solves two major problems. Right now, low noise and high efficiency are incompatible goals with small wind turbines, making them impractical for most areas where people live and work. The other problem is that the wind turbines cannot be placed at a close distance without interfering with each other’s wind flow. Other problems include the safety of birds, physical appearance and cost-effectiveness.
Flower Turbines has made technology improvements with its turbines, reducing turbulence and increasing efficiency while maintaining beautiful design. The global small wind turbine market size is expected to grow significantly soon, and the company plans to have sales in the U.S., Europe, and other global markets based on a mass production and installation model.
The company has raised $2,847,214 from 1,616 investors. The minimum investment is $560, and the valuation is $61.7 million.
The next equity crowdfunding opportunity we’re examining is AtomBeam. In a nutshell, AtomBeam is creating efficient software for IoT (Internet of Things) applications. AtomBeam’s advanced software technology uses machine learning to solve important problems in data transmission. The company aims to reduce the size of IoT data files by 75% or more while at the same time adding ultra-light security, which is needed to secure this data.
AtomBeam describes itself as “a data compaction software company that shrinks, secures, and speeds data transmission.” The wide usage of AtomBeam in IoT devices such as cell phones and vehicles represents a large market opportunity, projected to be $37.5 billion by 2025.
The company has seven issued and three pending patents, and the leadership team has experience in many relevant sectors, including sales, finance and startup experience.
All this data transmitted by IoT devices slows networks, often causing overloading problems, while at the same time having high costs for end-users. The vast majority of IoT data is unsecured, which is too important to ignore.
AtomBeam offers a solution to all these data problems. The company focuses on fast data transmission, built in security, searchable and randomly accessible data and compacted data.
The business model is built on two potential sources of revenue, via primary sales to large companies and via reseller arrangements with companies producing devices and platforms. It is supposed to be a high gross margin B2B model with a net-zero cost of goods. It sounds interesting and promising.
The company has raised $1,540,389 from 955 investors, having a $10 million valuation cap. The minimum investment is $500.
StartEngine Equity Crowdfunding: Cadi
Cadi wants to combine autonomous retail and e-commerce to revolutionize golf. It’s a clever idea to change the way people shop for golf products.
Cadi is an innovative, retail automation platform to connect physical kiosks and online shopping. Cadi’s physical kiosk is currently available on the market. It allows you to demo clubs right on the course whenever you want. When you find the perfect club, it can be purchased instantly through Cadi’s self-service kiosk and e-commerce platform. This helps golfers experience the best of online shopping.
The traction is present as Cadi has over $1 million in pilot testing sales and signed letters of intent from 63 golf courses. This could provide significant revenue and access to over 250,000 golfers. In addition to that, Cadi’s autonomous patent-pending kiosk has led to strong partnerships with the biggest brands in golf and plenty of large golf course management groups. The sporting goods market is worth $126 billion, and Cadi wants to be a part of it.
The company is using e-commerce and artificial intelligence to help golfers find the products they want via curated product selection and a personalized experience for each customer. The online marketplace gives golfers 24/7 access to the platform to choose their products.
The business plan offers two sources of revenue: membership subscriptions and product sales. If you think that Cadi can become the market leader in golf and recreational sports as the company intends to do so, then you should know that $1,249,968 has been raised from 1,425 investors. The minimum investment is set at $248.97 and the valuation cap is $10.1 million.
PhorMed is a biopharmaceutical company that uses gene therapy to treat diseases, which allows the body to begin healing itself. This has applications for diseases like AML, Hodgkin’s Lymphoma, Parkinson’s disease and even viruses.
PhorMed’s technology targets the disease, not just the symptoms, and this technology has the potential to treat multiple diseases. This means expanding opportunities for new markets and the potential for growth and expansion. Add the potential of a large market estimated at more than $8 billion per year and the investment opportunity gains interest.
PhorMed’s early stage drug has shown a lot of promise in the treatment of these deadly diseases mentioned above. Their drug, named RP-323, is a gene repair therapy targeting damaged or mutated cells and repairing many cell types.
It has passed Phase-I clinical trials and the company is focusing on completing Phase-II clinical trials. A safety study has shown a large degree of validity and effectiveness for this drug. It could drastically improve the quality of life for the company’s patients.
$1,483,660 has been raised by 2,728 investors. The minimum investment is $250, and PhorMed has a valuation of $39 million.
StartEngine Equity Crowdfunding: Atmos Home
The last equity crowdfunding startup to consider is Atmos Home, which has the goal of simplifying the smart home today and in the future.
The product is AtmosControl, an award-winning and world’s first (according to the company’s research) private voice-activated smart home control system. Reasons to invest in Atmos Home, besides this award-winning technology, include a proven team with experience in offering technology solutions and the explosive smart home market.
This market is projected to reach $135 billion by 2023. The company believes that smart home devices could outnumber smartphones this year. Atmos Home has over 1,000 customers in 28 countries, indicating demand in the smart home marketplace.
The solution that AtmosHome offers to the smart home industry is simple but powerful. Atmos Home is bringing an affordable and easy-to-use smart home control suitable for the mass market. AtmosControl combines all of the most popular smart home protocols with a variety of voice, touch, smartphone, and gesture controls. It’s a multipurpose remote control for all of your smart home devices.
From opening lights to playing music to locking doors, the applications are endless while also remaining practical.
AtmosHome has raised $1,234,089 from 1,474 investors. The minimum investment is $250 and the valuation cap is $12 million.
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
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.