“Invest, Trade, and Build Your Startup Portfolio.” This is a motto on equity crowdfunding platform StartEngine. If you are looking to invest in strong, young growth companies; discover new promising investment ideas; and trade on a secondary market for startups then you can visit StartEngine. There, you can explore the large list of options and narrow down your investment criteria for the best startups for your portfolio.
The site allows you to search by specific industries, most funded companies or companies that will soon end their equity crowdfunding campaigns.
For this article, the criteria I used to select my picks was the best startups that are currently among the site’s most funded offerings.
As always, it is advisable to be fully aware of all risks related to startup investing, such as potential business failure and loss of capital to name a few.
Below are some of my top picks on StartEngine right now:
- Jet Token Inc.
- Battle Approved Motors
- GoSun Inc.
Best Startups: StartEngine
Let’s kick off our list of the best startups with the site that allows us to invest in them. One of the first things you read when visiting StartEngine’s offering is “This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.” I like that full transparency — it’s realistic and helps investors understand the potential pitfalls. But if you are ok with this risk, then you may be interested in investing in StartEngine for several reasons.
There is growth in the number of investors joining this equity crowdfunding platform, but also growth in the money raised of the companies and also revenue growth too. StartEngine mentions that “Companies have raised over $400M on StartEngine, $200M+ of which was raised in the past 12 months alone.” It also touted $12.5M in revenues in 2020, up 190% year over year.
These are impressive figures. But StartEngine has a bold vision too. And it has Kevin O’Leary in its corner as a strategic advisor.
As for the business model, StartEngine makes money from several streams of revenue, such as platform fees, service fees and trading fees.
Rentberry wants to be the future of real estate. It is a global home rental platform to change the long-term rental process into an all-digital experience built on safety and transparency.
What if you could rent a property or list your property for rental without the intermediaries of agents or brokers? Rentberry offers this service, having benefits both for tenants and landlords.
Landlords can analyze online applications, searching for quality leads based on screening criteria to increase their odds of receiving on-time rent payments.
Tenants, meanwhile, can have a full rental experience, gaining time as everything is done online using intelligent analysis. Two other reasons to invest in RentBerry are the fact that more than $13 million has already been raised by institutional investors, and that there are one million monthly active users.
Rentberry considers this to be a market opportunity of $7 billion. And it is not just focused on a single area — in 2020, 11 million properties in 87,000 cities were reached. This offers notable diversification benefits.
The minimum investment in Rentberry is $300.15.
Best Startups: AsomBroso
Are you a tequila fan? If yes then you may find AsomBroso — a maker of not just tequila but an ultra-premium tequila — interesting to invest in. And luckily, many important factors show this startup has already traction.
For starters, over the years AsomBroso has earned several awards, and the quality is reflected in sales of more than $20 million. Add to that a growing global market — AsomBroso reports that “The global Tequila market size is projected to reach USD 7746.7 million by 2026, from USD 5784 million in 2021.”
AsomBroso is produced and bottled in Mexico but is available in many U.S. states via well-known retailers such as Kroger (NYSE:KR) and Costco (NYSE:COST). But even better, AsomBroso has also sales in other countries, such as in U.K. and Germany, with plans for further expansion in Canada, Australia and Mexico.
Sometimes mixing passion with tradition to innovate is a recipe for success, and this is the focus of Asombroso. You can invest in Asombroso with a minimum amount of $480.
Jet Token Inc.
Have you ever wondered how it would be like to book a private jet — experiencing that luxurious style of travel, with you as the main passenger?
Jet Token Inc. wants to solve problems that exist in the private jet industry. It is an app — or more precisely, it’s a combination of a private jet membership and booking platform to help you book both private jet and commercial airline tickets.
Jet Token Inc. is planning to buy a small fleet of HondaJets that will be used both for membership purposes and also charter flights in the Western U.S.
Booking a private jet has several problems — it is costly, there are hardly any refunds, and you get charged with a penalty should you decide to terminate membership.
With Jet Token, there is a new experience for commercial and private travel, with many options and price ranges for your next flight. “Private jet travel is a multi-billion dollar industry” and Jet Token is offering both private and commercial bookings. That translates into savings for its customers.
Even blockchain forms of payments in addition to more traditional ways of paying, such as a credit card, are offered.
Why? To satisfy the demand of tech-savvy investors who have accumulated wealth using blockchain technology.
The minimum investment in Jet Token is $99.
Best Startups: Battle Approved Motors
When you read the vision of Battle Approved Motors most probably you will get overwhelmed. “We want our Electric UTV to be like Ferrari meets Tesla in the dirt. Battle Approved Motors (BAM) develops electric vehicle technology for work and performance-based off-road vehicles.”
Ferrari and Tesla? And not in a sportscar, but instead in the ultimate UTV (utility task vehicle)? And an all-electric one? If you think this is a fascinating idea then BAM Legacy Membership may be right for you. With membership you get offered access to products and events, and the opportunity to participate in the private testing facility with the option to order ahead of the general public.
There is not just one but three models, all of which embrace luxury and performance without neglecting style.
I admit I did not know that the UTV market is both large and still growing. According to BAM’s page on StartEngine, “The utility task vehicles market was valued at US $4.12 billion in 2017 and estimated to grow with a CAGR of 6.7% during the forecast period from 2018 to 2026.”
You can invest in Battle Approved Motors for a minimum amount of $325.
Sugarfina wants to make our daily life as sweet as possible. But not just for children — this time, it’s candy for adults. Kudos to this, as adults love candy too.
Sugarfina targets a specific demographic target — influential women who love to be fashionable.
Sugarfina mentions that 90% of its customers are women. The brand has invested in several well-sought features such as a mix of luxury, a high quality, and a design that is both fun and highly beautiful.
The traction is present, with sales of about $25 million in 2020 and expansion plans not just in the U.S. but on an international level. And there is a big partnership with international candy makers, from the U.S. to Europe.
Candy is a growing market and a business opportunity. The company quoted a MarketWatch article as saying, “analysts predict that the global market for confections will reach $214B by 2026, up from $190B.” The business model is covering both direct sales to consumers but has incorporated retail sales as well.
You can invest in Sugarfina for a minimum amount of $507.15.
Best Startups: GoSun Inc.
Thee last of this list of the best startups, GoSun Inc., is all about solar energy. In many countries, solar energy is a great option as long as you have the right technology to cover various consumer needs.
GoSun has evolved over the past years, offering smart solutions using solar energy. It started out with solar ovens at first, but now offers a wide range of products such as portable fridges, lighting, water purification and even power generators.
The traction is present, with reported revenue of $3.9 million in 2020, 100,000 units sold and availability in 70 countries. And with several awards such as its most recent, when it was a CES Innovation Award honoree in 2021.
The addressable markets of outdoor recreation and disaster relief are both very large. And the broader solution offered by GoSun is multi-dimensional, allowing people to save money, help the climate and live healthier.
The minimum investment in GoSun is $250.
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.