With a plethora of new investment ideas, a small amount of capital and plenty of potential for growth and profits, startup investing seems appealing to many investors. StartEngine (OTCMKTS:STGC) is an equity crowdfunding platform that offers several of these opportunities. The site allows users to invest in private companies and startups.
It is also important to mention that you can trade on the StartEngine secondary market. This improves the liquidity of a startup investment significantly, as you can either buy or sell your shares.
But as always, investors should be fully informed about all risks related to equity crowdfunding. Business failures and the potential for losses rather than profits are a distinct possibility when you engage in this type of investing.
While there is a huge variety of options to choose from on the platform, I will highlight companies that have recently started their equity crowdfunding campaign. Here are seven of the best startups on StartEngine:
- Capital Pipeline
- Blockchain Institute of Technology
- Travelmate Robotics, Inc.
- Vitamin Energy
- K-9 Power Products
- Orion Haus
Equity Crowdfunding on StartEngine: Capital Pipeline
Capital Pipeline is providing an important solution in a world full of data and technology. The company is offering a combination of an intelligent market research report and an interactive tool that analyzes and filters tons of pubic data sets.
It has made its services available to businesses in various sectors, from materials and finance to utilities and industrials. With the help of artificial learning, these huge amounts of information can provide both alerts and insights to users that help them make well-informed business decisions.
Not only does Capital Pipeline provide insight and beneficial information for businesses, but it also saves considerable time for companies. Like in daily life, time is valuable in business.
According to Capital Pipeline’s StartEngine page, “the size of the big data technology market is projected to grow from $41B in 2019 to $116B by the end of 2027, with increasing integration of AI and machine learning further boosting growth.”
Capital Pipeline offers an annual subscription service and the opportunity to lease its national raw data. The minimum amount to invest is $250.
Blockchain Institute of Technology
Blockchain technology has evolved rapidly in the past few years. While it is still a key component of the cryptocurrency market, it is now present in other markets and industries. Blockchain is used in global supply chains, finance, entertainment and healthcare. However, with this quick expansion comes a problem — there is a shortage of workers with sufficient training to use this technology.
Blockchain Institute of Technology (BIT) tries to solve this problem by providing educational opportunities to build a bigger blockchain-trained workforce. It offers third-party credentialed blockchain and cryptocurrency professional education. Students can get certifications too, which give them a better chance of making a career in blockchain technology. This can go a long way toward filling the gap between the sector’s labor needs and the available talent pool.
The education offered by BIT has many merits. It is cost-efficient, at-scale and flexible, as it is available anytime and anywhere. With more than 100,000 enrollments from students in more than 180 countries, the company has plenty of traction.
You can invest in the Blockchain Institute of Technology and the future of the sector’s workforce with a minimum investment of $100.
Equity Crowdfunding on StartEngine: Travelmate Robotics, Inc.
Travelmate Robotics, Inc. makes traveling more fun, relaxed, stylish and tech-savvy by offering a self-moving suitcase. Its luggage uses artificial intelligence and machine learning to move and follow you at airports or wherever you go.
Consumer robotics is a market mostly focused on industrial uses and academic research rather than daily solutions that make our lives easier. In this context, Travelmate stands out as unusual compared to the rest of its sector.
This robot companion has plenty of smart features. It moves both vertically and horizontally and has a GPS installed to track it anytime. Additionally, it has a smart lock and can show you its exact weight, which is useful when you are trying to meet the luggage weight limits that several airlines impose. On that note, this smart suitcase is the only one of its kind approved for use by all airlines.
Travelmate Robotics, Inc. has a minimum investment of $300. Now that worldwide travel is poised to resume after a pandemic-induced pause, this suitcase is a stylish and clever idea that can make trips easier.
GiftCrowd is all about the group gifting market and the experiences related to it. We all love gifts. But at the same time, there are several emotional and psychological aspects to gift giving or gift receiving. GiftCrowd taps into this using the online world. It has simplified the group gifting experience to a few steps from start to finish.
Group gifting takes a lot of time, from sending reminders and collecting money to delivering thank you notes. Herein lies a large market — according to GiftCrowd’s StartEngine page, “The gifting market is expected to grow at a CAGR of 9.7% to reach a projected $171 billion in 2021.”
Notably, GiftCrowd is also active in the teacher gifting market, which is estimated to be about $5 billion per year. With that and so many other gifting occasions to cover, from birthdays to farewells, it has ample opportunity to profit.
The company has a business model based on commissions from vendors, their affiliates and professional personal greetings. You can invest in GiftCrowd for a minimum of $100.
Equity Crowdfunding on StartEngine: Vitamin Energy
Vitamin Energy provides the extra energy needed for daily exercise programs and routines. It can also be used for other sources of fatigue, like a long day at work or a day full of personal activities and obligations.
What is Vitamin Energy? On its StartEngine page, the product is described as a “a health-conscious energy shot that combines vitamins with natural caffeine to provide a boost of energy.” The product lasts up to seven hours and is “sugar-free, zero net carbs and packed with vitamins.”
In my daily life, I often feel tired before the end of the day and need a boost to continue to be energetic. As someone who often drinks coffee or other products, I think this energy shot tastes great.
With several benefits that set it apart from competitors, Vitamin Energy is poised to take a share of the energy shot market, which is worth $2.5 billion.
The company has traction in revenue and has a remarkable history of tripling its sales in both 2019 and 2020. There are further business plans, like selling on e-commerce giants’ sites, that can boost sales even more in 2021.
You can invest in Vitamin Energy with a minimum of $300.
K-9 Power Products
K-9 Power Products is a great option if you want to invest in a company that loves pets — especially dogs. It has produced dog supplements that are of high quality for more than a quarter of this century.
All dog owners consider their pet part of the family and want to give them a healthy, energetic life full of activities and long-lasting memories. But there is a big problem here — nutritional food is often difficult to find for dogs, as many snacks or treats given to them are far from healthy.
Malnutrition can have serious consequences, so it’s important that dogs have a healthy diet. Today, many dog owners are vigilant about the food they give their pets. This is where K-9’s products come in. They provide a nutritional option for dogs of all ages.
You can invest in K-9 Power Products for a minimum investment of $193.75.
Equity Crowdfunding on StartEngine: Orion Haus
Orion Haus offers an interesting idea: What if you could be a renter, but still invest in real estate?
How is this possible? The answer lies in the concept of homesharing — short term rentals or sublets of already-rented apartments. Real estate is a popular market to invest in, but comes with significant costs and barriers. For example, investors need to be in it for the long-term rather than the short-term. Additionally, there are issues like taxes that further complicate matters.
Many renters come to feel they are wasting their money because they won’t own their home after a period of time. Additionally, most people also believe the only way to profit from real estate is to own property and treat the sector like the stock market: buy low and sell high.
But Orion Haus offers renters the opportunity to invest in real estate through homesharing. The concept is a flexible way for renters to use a 12-month standard lease term to reap the benefits of monetization in real estate. According to its StartEngine page, Orion Haus wants “to democratize the homesharing market.”
By listing your apartment with a 12-month lease on vacation rental platforms, you can start making money and repeat the process once each rental is over.
If you think this is a market worth exploring, then you can invest in Orion Haus for a minimum of $198.36.
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:
Greater chance of failure
Risk of fraudulent activity
Lack of liquidity
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.