Private investing, also known as equity crowdfunding, is an exciting, cost-effective way to invest in companies at their early stages of growth. In most cases, the minimum investment that’s required is very low, sometimes as little as $100.
Investors should know that private investment is very risky, and due diligence is always recommended. But with that risk comes a plethora of exciting companies with immense possibility.
One quick piece of advice: just as you should diversify when trading stocks, you should also diversify your private investments, too. There are numerous sectors and industries to choose from.
Here are seven startups that have recently launched their equity crowdfunding campaigns on StartEngine:
- Bone Haus Brewing
- GTFO It’s Vegan
- ThrillSeeker Media Group
- Legion M Entertainment
Equity Crowdfunding: Bone Haus Brewing
It’s often a strong sign that a business is doing well when the demand for the company’s product is higher than the supply it can meet. That’s what is now happening with Bone Haus Brewing, a beer manufacturer
Bone Haus Brewing is using a third party canner, and it estimates that each month it has about 25% – 30% of unrealized production. The company also currently employs manual brewing methods, which are time-consuming and limit increased production.
Bone Haus is an Arizona-based brewery and currently ships to seven states. Bone Haus reports impressive year-over-year growth, especially during the pandemic. The company reported “overall growth of 30% YoY from 2019 to 2020 during the pandemic including over 120% growth YoY in wholesale sales” and that growth in revenue for “Q1 and Q2 for 2021 were between 66% – 75% up YoY.”
The company has witnessed consistent growth in the beer market and plans to automate the infrastructure to meet the higher demand for its beers. The minimum investment in Bone Haus is $250.
ThinOptic promises that you can have your glasses “always with you.” This eyewear maker focuses on glasses that are light, thin and durable. ThinOptics glasses are so compact that they can be carried on the back of your cellphone in a magnetic case.
The company has sales in more than 125 countries and has made more than $100 million since 2010. ThinOptics wants to disrupt the U.S. eyewear industry — estimated to be a $4 billion market — by improving reading glasses.
These reading glasses are light, durable, and can be easily attached to the back of a mobile phone. ThinOptics estimates that 31% of the population needs reading glasses. The company reports a gross margin of 55% and that 30% of buyers purchase another product within the first year.
The glasses made by ThinOptics already have 12 issued patents, and more of them are set to follow soon.
The minimum investment in ThinOptics is $495.72.
Equity Crowdfunding: Healthycell
Healthycell is solving the problem of not being able to reach your full potential daily due to a lack of nutrition and energy. Healthycall makes nutritional supplements with innovative technology without relying on tablets, powders or pills. It is estimated that 40% of people have trouble swallowing pills.
Healthycell has developed a patent-pending Microgel technology to solve the problem of people with swallowing pills and to enhance the actual benefits of the effectiveness of dietary supplements that may be undermined by being poorly absorbed.
Healthycell has developed a line of products that are easy to use and can be mixed with a drink or even used in a smoothie. The market opportunity is large as “the global dietary supplements market is projected to reach $198 billion by 2025, with a compound annual growth rate of 8.6%.”
Traction is present with a reported “60% sales growth from 2019 to 2020, ending the year with $2.15M in sales.” On top of that, the monthly retention rate of 94% is also very high.
The minimum investment in Healthycell is $100.63.
Envel is a fintech company that wants to transform banking as we know it through artificial intelligence and behavioral finance. Its app helps people automate decisions such as budgeting and saving with plans to implement investments as another service soon.
The mission of Envel is simple yet very important: help people automate their money management from savings to investing. Envel provides a solution to a problem most Americans face: a lack of time, skills and discipline for prudent money management.
Digital banking is a large market and “Envel is looking at a +$50 billion market opportunity, made up of about 63 million underserved adults, between the ages of 18 and 35.” It is like having your banking running on autopilot. The company has plans for more features to be introduced in 2022 and 2023. With more than 30,000 downloads for the first nine months of 2021, the projection is for four million users by 2025.
The minimum investment in Envel is $102.24.
Equity Crowdfunding: GTFO It’s Vegan
GTFO It’s Vegan has a very ambitious mission. The company aims to “become the most important company in this century to ensure the sustainability of our people and our planet as a progressive online retailer, wholesaler, and distributor of curated vegan and plant-based foods.”
GTFO wants to address the lack of a central source for everything related to vegan food. This “New Age Vegan” movement is addressed to people who are looking for a better, healthier way of eating and living. With a focus on providing the best customer experience, GTFO is searching for the best vegan products around and curating a great selection for its customers.
The business model generates revenue from multiple sources: online retail sales, wholesale sales, vendor advertising revenue via digital and social marketing and memberships. The company launched in 2020 and it has reported more than $3 million of revenue during the past trailing 12 months of business operations.
According to GTFO the global plant-based food market is expected to grow to $74.2 billion by 2027.
ThrillSeeker Media Group
ThrillSeeker describes itself as “an entertainment company and production agency specializing in virtual reality content.” TMG has created the ThrillSeeker YouTube channel with over 400,000 subscribers and a large community of both virtual reality and augmented reality creators, advertising partners and influencers.
The business model is based on advertising revenue on videos via the Google AdSense platform, selling advertising spots for clients, and also the revenue generated via a Twitch channel and sales from affiliate programs such as items sold on Amazon.
According to ThrillSeeker, “The VR market was worth $1.8 billion in 2020, up 31.8% from 2019.” It is also notable that the company believes that the market is at its early growth stage with the potential to become a multi-billion industry.
Becoming a leader in the VR industry is an ambitious goal, but the company has an ambitious vision for the possibilities of VR.
The minimum investment in ThrillSeeker Media Group to shape the future of the VR industry is $105.
Equity Crowdfunding: Legion M Entertainment
Legion M Entertainment wants to “unite fans to shape the future of Hollywood” by creating an entertainment company owned by fans. The entertainment industry is a multi-trillion dollar global industry with specific problems and risks. It’s an unpredictable business which of course can be very lucrative, but without any guarantee of success for any movie or show. It is the audience that at the end decides whether a movie is a blockbuster or a failure.
Legion M Entertainment wants to unify fans to create an entertainment company poised for success by minimizing risks and creating big hits.
Legion M Entertainment co-founders Paul Scanlan and Jeff Annison are Emmy winners and describe themselves as “serial entrepreneurs and digital pioneers.” So they have the expertise and experience on what works in the entertainment industry. The company has grown its revenue since 2016, and traction is present with the sale of a TV series to a streaming network and a new movie in production. The business model supports multiple revenue streams, from the production and distribution of projects to merchandising, licensing and the development of new projects.
If you want to be part of this entertainment company, then you should know that the minimum investment in Legion M Entertainment is $105.
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.