Investing in startups can be an exciting journey toward a diversified portfolio. The right startups have a lot of potential for growth. They also have management that’s committed to achieving success. That said, when it comes to this investment category, prospective investors should look for transparency and conduct a lot of strict due diligence as well. As always, it’s important to thoroughly understand the risks that can come with equity crowdfunding.
However, one of the best arguments in favor of investing in startups is the fact that there are limitless options to choose from. Investors can have their pick of the litter, from recently launched campaigns to names that are already mostly funded. Startups also extend across a wide variety of sectors and industries and often possessive disruptive or innovative qualities.
So, which ones should you choose? Here are seven startups that appear attractive right now. They have solid business plans and could worth looking into further:
- 305 Fitness
- RedSwan CRE
- Austin Cityfund
Equity Crowdfunding Opportunities: AppMail
First up on this list of equity crowdfunding opportunities, AppMail is an “email solution enabling users to browse, select, and make purchases without leaving their inbox.” Basically, it aims to make the daily tool of email that much more convenient and functional, integrating apps that allow businesses to interact with their customers without them ever leaving the inbox.
No doubt, this will help increase the power of an already powerful tool, accelerating user engagement and conversions. AppMail offers users dynamic content and simplifies the customer journey. In doing so, it can help clients address one of the most important challenges in business: engaging customers before they lose interest.
This business model is two-pronged. AppMail uses both an SaaS (Software as a Service) model that is “charged on a per email basis” as well as a commission-based model for other products and services like “transactional based campaigns.”
The minimum investment for AppMail on SeedInvest is $1,000 per investor.
Next up on this list, 305 Fitness bills itself as a “cardio fitness program with studios across the U.S. and certified instructors worldwide.”
Fitness for many people is time-consuming, expensive, difficult and even boring. Let’s face it: going to the gym and doing the same exercises over and over again can be a slog. However, 305 Fitness is a solution for all these negative perceptions of fitness. It aims to make exercise fun, engaging and stimulating.
Essentially, 305 Fitness offers entertaining, dance-based cardio classes. The company currently has seven locations, including in major cities like New York City, Washington, D.C. and Boston. It also has online classes as part of its At-Home platform. What’s more, 305 has seen some notable attention, mentioned by venues like Forbes, Bloomberg and more.
This business has multiple revenue streams and notable investors like Kevin Durant. The minimum investment for this equity crowdfunding opportunity is $1,000 on SeedInvest.
Equity Crowdfunding Opportunities: RedSwan CRE
Billed as a “bockchain commercial real estate marketplace,” RedSwan CRE is the next entry on this list of equity crowdfunding opportunities.
Basically, RedSwan uses blockchain technology and tokenization to make investing in commercial real estate properties more affordable and liquid. Using “tokenized shares of commercial real estate projects,” it gives a multitude of investors access to deals.
There are many notable highlights with this name. For instance, it has already tokenized more than $2 billion worth of commercial real estate properties on the online marketplace. RedSwan also has “key partners and service providers” like Coinbase (NASDAQ:COIN).
When it comes down to it, RedSwan CRE is solving one the biggest problems in commercial real estate investing: liquidity. Investing in tokens has a mandatory holding period of one year. After that, though, these investment tokens can be transferred between investors readily.
On SeedInvest, the minimum investment in RedSwan CRE is $1,000.
What if your dog could communicate better and more effectively with you? FluentPet makes the concept of giving dogs a voice as much of a reality as possible. Essentially, it is a “system of recordable sound buttons and connecting HexTiles that enables dogs, cats, and other animals to express themselves and be understood by humans.”
Offering a customizable and interactive design, FluentPet allows customers to record words and teach their pets what they mean. If a dog wants to ask for a walk, they can press the “walk” button. Feeling hungry again? The dog can press the food button. FluentPet’s design also allows for a growing vocabulary. Plus, the business has a mobile app under development to “cement [its] market leader position.”
FluentPet already has traction, with trailing 12-month (TTM) revenue of more than $3.3 million as of June. Plus, the platform is already famous on TikTok.
FluentPet is creating a thriving community of users and has a lot of future potential. To get in on this equity crowdfunding opportunity, the minimum amount to invest is $100 on Republic.
Equity Crowdfunding Opportunities: Novalent
According to its Republic page, “Novalent is a US biotechnology engineering firm that has pioneered a new category of technology providing long-lasting protection against bacteria and viruses.” No doubt, in a world full of viruses, protecting our health is valuable. But there is a big problem people often neglect — the duration of our protection against these germs. Things like disinfectant are really only temporary solutions.
That’s where Novalent steps in. The firm helps solve the duration problem by offering a longer timeline of up to 90 days. Its patented technology uses a spray-on product that “continuously inhibits bacteria and other microorganisms on surfaces” over its approximately three-month life span.
Of course, this kind of bacterial protection is also safe for people, animals and the environment. Novalent’s spray product is approved by the Environmental Protection Agency (EPA) and its hand sanitizer is listed by the U.S. Food and Drug Administration (FDA). (The hand sanitizer, Novalent Shield+, lasts for a 24-hour period.)
In 2020, Novalent made $7.7 million in revenue. For this equity crowdfunding opportunity, the minimum investment is $10,000.
Austin Cityfund is the second real estate equity crowdfunding opportunity in this article, but the startup is actually focused on a single area: Austin, Texas. What’s more, it’s solely focused on single-family residential real estate.
Essentially, Austin Cityfund is a bit like an index fund, focusing on the performance of real estate specifically in Austin. Other Cityfunds focus on other single cities, such as Miami and Dallas.
What’s good for this name, though, is that the real estate in Austin has been booming. Data from Zillow (NASDAQ:Z) shows that home prices are expected to increase “by 17.9% through the end of this year,” but the report also shows exceptional growth in places like Austin.
Of course, real estate investing is not an easy task. Large amounts of capital are needed and lack of experience can be a major hindrance. But the exposure that Austin Cityfund offers could be a great away around these worries.
The minimum investment in Austin Cityfund is $500.
Equity Crowdfunding Opportunities: Jelli
Last up on this list of equity crowdfunding opportunities, Jelli is a “neobank” that offers “real-time budgeting, a fun social platform, and cash back rewards.” Essentially, this startup bills itself as a new, modern way of banking that also helps users budget via a widely available mobile app.
Jelli offers users updates, notifications and a surcharge-free ATM network. It also offers social interaction, allowing users to connect and create project funding (via “JelliJars”) as well as share expenses with one another. Additionally, Jelli gives users access to a JelliCARD, which allows for rewards on purchases among other things.
This name has big plans. For the next five years, it’s targeting 3 million users and $365 million in revenue. It is also planning on using the expansive reach of social media to help meet these ambitious goals.
The minimum amount to invest in Jelli is $100 on Republic.
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 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.