Startups are companies that typically want to solve a critical problem in business, society or technology. By itself, that’s already a strong reason to consider investing in the best startups out there. After all, these pioneers can turn out to have a lot of growth potential and, as an early investor, you are able to reap all the rewards.
However, the success of any startup is still not guaranteed. Of course, that applies to all types of investments. But there are specific risks in startup investing that you should know.
For one, time is of paramount importance. Furthermore, most startups fail in the first few years of business. Plus, illiquidity can be a major issue. In fact, you may need to lock in your capital for a few years before seeing any profits. That said, equity crowdfunding platform StartEngine does help solve this latter problem; its Secondary market allows investors to trade shares in different companies.
No doubt, there are plenty of startups to invest in. But, with recently launched campaigns, these seven names may be the best startups to invest on the StartEngine platform right now:
- FLX Bike
- Maya Global Solutions
- RP Designs
- AirBox Technologies
Best Startups to Buy: FLX Bike
First up on this list of best startups, FLX Bike is a San Diego maker of electric bicycles. The company has a lineup of six models and completed a previous equity crowdfunding campaign in 2020 for $13.3 million. The campaign shattered records on Indiegogo. Having already developed its flagship bike, the Babymaker, FLX Bike now plans to develop the Babymaker II model for 2022.
So, what problem is FLX Bike trying to solve? While normal bikes can be good exercise, they are also not always practical for use — they make riders sweat and aren’t that fast for your daily commute. On the other hand, although cars are a fast and convenient method of transportation, they are also expensive to use and can pollute the environment.
The electric bikes made by FLX Bike help riders go much faster and exercise when they want to. They are high-quality, modern-looking products and can offer up electric power when the rider needs it.
Since 2016, FLX has generated more than $29.3 million in revenue. For 2020, it saw 504% year-over-year (YOY) revenue growth. According to the company, the e-bike market is growing fast. Valued at $24 billion today, it’s expected to reach $48 billion by 2026, growing at a compound annual growth rate (CAGR) of 12.7%.
The minimum investment in FLX Bike on StartEngine right now is $253.80.
Next up on this list of best startups, Knightscope is manufacturing fully autonomous security robots that can patrol areas to ensure public safety. Notably, Knightscope also intends to go public on the Nasdaq.
Knightscope is expected to trade under the symbol KSCP. Basically, the technology company seeks to answer the lack of safety resources across the U.S. via fully autonomous security robots. Knightscope also believes crime negatively impacts the economy by more than $2 trillion annually.
This company’s Autonomous Security Robots (ASRs) are equipped with high-tech features, such as eye-level 360° cameras and thermal scanning. The robots are also designed to “enhance the work of existing security operations, not replace them.” This is achieved in combination with the Knightscope Security Operations Center (KSOC), an interface that gives users access to real-time data.
Knightscope is targeting two markets in particular: global security and video analytics. The former is expected to have a value of $165 billion by 2025 with a CAGR of 10%. The latter was valued at $1.6 billion just in 2020.
The minimum investment in Knightscope on StartEngine is $500.
Best Startups to Buy: SportsEdTV
SportsEdTV is an online sports education platform and the next entry on this list of best startups. The company aims to help people learn sports more easily whenever and wherever they want. Basically, SportsEdTV aims to save users countless hours trying to learn how to get better at a given sport. It’s essentially a trusted, online coach.
This platform is full of resources for users, giving them access to tons of advice — including videos and blogs — from “world-class coaches and athletes.” The business has three pillars: its content, community (i.e. coaches and athetes) and its marketplace.
As you might expect, SportsEdTV is already getting traction; it has 3.5 million monthly unique visitors as well as more than 500,000 social media followers. Further, its pool of world-class sports educators — currently coming in at about 250 people — is only increasing. The business model generates revenue from commercial alliances and revenue sharing. The company is also planning to implement a subscription rate in 2022 that will give users access to even more resources.
The minimum investment in SportsEdTV right now is $102.30.
Next up, Cyberlandr wants to redefine the recreational vehicle (RV) industry. The problem it’s solving? Currently, vehicles in the category are somewhat old-fashioned, with uninspiring design, bulky sizes and sometimes low quality. To remedy this, Cyberlandr is offering up a camper based on Tesla’s (NASDAQ:TSLA) Cybertruck, transforming it into an RV that can take you anywhere you want in unique style.
Cyberlandr’s solution is essentially a tiny home crossed with a Cybertruck. The space is automatically deployable via an app and offers a living room, kitchen, office, bedroom and even bathroom. Further, this space should not significantly reduce the range of Tesla’s electric vehicle (EV) because it can be folded up into the bed of the Cybertruck under the tonneau. At the very least, this eliminates any aerodynamic drag.
The recreational vehicle (RV) market in North America is growing fast, expected to reach $35.7 billion by 2026. That’s compared to $26.7 billion in 2020. Further, Tesla has reported that the Cybertruck has some 1.2 million preorders so far. Likewise, Cyberlandr already has 2,000 pre-orders itself, valued at more than $100 million.
For this pick of the best startups, the minimum investment is $400.
Best Startups to Buy: Maya Global Solutions
Maya Global Solutions is the next entry on this list of best startups and is a good fit for companies that have supported work from home during the pandemic. The remote-work trend will probably never disappear, even as we return to pre-pandemic habits. To that end, Maya Global offers high-quality video conferencing and voice traffic solutions.
Obviously, bad video quality is not ideal, especially at work. It can leave bad impressions with customers and colleagues, harming your business. However, Maya Global Solutions addresses this via its patented Internet Quality Service (IQSTM), which “optimizes video and voice traffic without compromising quality.”
The market this company addresses — business communications — is expected to grow to $36.45 billion by 2026, at a CAGR of 10.5%. Further, some 36.2 million Americans are expected to work remotely by 2025.
Maya already has a vast network of resellers and customers in the U.S. as well as internationally. It also believes its recently launched IQS Standard Edition service gives it a competitive edge in the small and home office markets.
The minimum investment for this company on StartEngine is $484.
Next up on this list of best startups, RP Designs uses technology and style to make bicycles smarter. Essentially, its Smart-Cockpit solution helps people customize their bicycles to meet many of their needs via a touchscreen device.
No doubt, customizing a bicycle can be expensive. But the Smart-Cockpit product (which is still under development) uses WiFi and Bluetooth capabilities as well as an integrated Carplay touchscreen interface to offer riders navigation, audio and more. Riders can also make or receive calls as well read messages via the interface. Basically, it’s a system that can make any bicycle smart.
This product saves riders both time and money trying to customize their bike while also enhancing safety. What’s more, global cycling is a rapidly expanding market. The space is expected to grow from $67 billion today to $147 billion by 2027.
The minimum investment in RP Designs on StartEngine is $150.
Best Startups to Buy: AirBox Technologies
Last up on this list of best startups is AirBox, a new solution for mailboxes.
Traditional mailboxes are full of problems, lacking both privacy and security. On top of that, bad weather can ruin your mail and packages and the pandemic has emphasized the importance of contactless delivery.
AirBox Technologies addresses all of these problems via its secure and smart mailboxes. These smart mailboxes use GPS location, can lock and unlock automatically and eliminate the need for recipients to be home for any delivery.
Airbox Home and Deep are the two smart mailboxes offered by this company, differing in both price and dimensions. Both, however, can be used via an app using WiFi and Bluetooth. They also each have thermal insulation, making them suitable for grocery and food deliveries. Delivery via drone is also supported.
Mainly, this company addresses the last-mile logistics and e-commerce markets, which have a total market size of $435 billion. The minimum investment for AirBox Technologies on StartEngine is $488.95.
On the date of publication, Stavros Georgiadis, CFA did not hold (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.
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