Investing in startups on reputable equity crowdfunding platforms solves two main problems. For one, it helps investors find fresh investment ideas. It also gives them access to these ideas via a trustworthy method. Most equity crowdfunding platforms only list startups that meet certain criteria. In that sense, much of the due diligence has already been done, although you should certainly conduct more research on your own.
StartEngine has more than 600,000 investors. What’s more, over $500 million has been invested on the platform and more than 500 offerings have been funded. Investors can also get access to the platform’s secondary market and trade their shares with others, solving a common problem that private investing often faces: illiquidity. Of course, investors should still be aware of the high risks of private investing — and be informed about any legal aspects as well.
If these risks work fine with your investment philosophy, though, these seven startups may be great investments for you. They are currently among the most-funded companies on the platform.
- Modal Living
- Doroni Aerospace
- Esker Cycles by Krueger Outdoor
- Foundry Michelangelo by Treasure Investments
Equity Crowdfunding Opportunities: Rizome
Trees are essential to our lives, producing oxygen and helping to mitigate climate change. They’re also used in the construction industry, at the expense of the environment. Approximately 15 billion trees are chopped down every year to cover various industrial uses. The first entry on this list of equity crowdfunding opportunities, Rizome solves that problem by saving trees with bamboo.
The benefits of bamboo are multiple. Some notable benefits are the fact that it is both durable and as beautiful as typical hardwoods. It also matures faster, growing in just three to five years compared to the 20 to 60 years for other trees. Most of all, though, bamboo is very effective when it comes to harvesting; you can harvest the same bamboo “for up to 100 years” while other trees are finished after being cut down.
Rizome is doing more than just harvesting bamboo, however. The company is also addressing problems by cultiavting bamboo thick enough (or “timber-grade”) for use in construction. It is also focusing on creating a reliable supply of this bamboo in order to cover the demands of the industry. Rizome has already started shipping bamboo from its factory in the Philippines to fill demand. And to top it off, bamboo is also eco-friendly, lowering carbon dioxide emissions as an alternative to classic wood construction.
The targeted market for green building materials is growing fast. It’s expected to grow from $217 billion in 2020 to $384 billion in 2025. Additionally, the engineered wood market could grow to $400 billion by 2027.
You can invest in Rizome on StartEngine with a minimum investment of $249.66.
Battery waste is a big problem. Lithium-ion batteries are commonly used in many daily goods, such as electronics, toys, power tools and appliances. There are at least three challenges for battery recycling right now: passivation logistics and recovery.
Redivivus is addressing all of these challenges — issues that include risk of fire, hazardous packaging and methods that are neither low-cost nor environmentally friendly. This name’s first product is Redi-Shred, which provides on-site battery neutralization, disassembly and collection. The process behind this — the Redi-Cycle — is a method of recycling that provides off-site battery material processing and recovery.
Essentially, Redi-Shred is a modified truck that transports battery materials, helping with battery disassembly and everything related to transportation logistics. It generates revenue by charging a fee to either companies or municipalities to collect used batteries at their premises. The company also generates revenue by selling repurposed high-purity nickel and cobalt as well as other scrap materials.
Redivivus plans to have a competitive pricing policy, selling its products at commodity prices and developing industry partnerships to support both the development of material science as well as future alloy development. You can invest in a greener future alongside Redivivus with a minimum investment of $225 on the StartEngine equity crowdfunding platform.
Equity Crowdfunding Opportunities: AvaWatz
Technology today runs so fast that it’s hard to keep up with its advancements unless you are a tech expert. Have you ever heard about “Cobots,” for example? They’re cooperative air and ground robots that can perform human tasks that are tough, dangerous and time-consuming. These tasks include debris discovery and removal or ground asset inspection on airport runways, for instance.
AvaWatz offers these robotic services with its advanced technology, entering the promising Robot as a Service (RaaS) market. The market is expected to grow to $41 billion by 2028 at a compound annual growth rate (CAGR) of 15.9%.
This robotics technology is also scalable and suitable for civilian and governmental use. Using artificial intelligence (AI), autonomous drones and ground robots can execute complex tasks. They can also be suitable for applications other than debris discovery, such as infrastructure repair surveys, large-scale railroad inspections and more.
AvaWatz’s business model is aimed at generating recurring revenue with one- to three-year contracts that will provide a suite of services, from robot operator training to support and necessary software updates. The company sees wide adoption of this technology, too. The global robotics market is expected to reach $74.1 billion by 2026. Additionally, by 2025, the smart airports market and global ground transit market are expected to reach $25 billion and $634 billion, respectively.
You can invest in AvaWatz on the StartEngine equity crowdfunding platform with a minimum amount of $300.
Modal Living is the next entry on this list of equity crowdfunding opportunities. The rising cost of homes in the U.S. has a lot to do with the construction industry and has two main drawbacks: home construction can be inefficient and expensive. To answer that problem, Modal Living builds small homes that are affordable, more efficient and environmentally friendly.
Businesses are built by exploring opportunities and demand in products and services. To that end, Modal Living is focused on the Accessory Dwelling Units (ADU) market which has gained popularity due to the high demand for backyard houses. Notably, the ADU market in California is huge at an estimated $250 billion-plus.
Essentially, with ADUs consumers can choose their factory-built units and options ranging from studio to two-bedroom homes. Modal Living then handles all the processes — including permits, the contractors and of course the units themselves.
There is already significant traction here, to be sure. Modal saw 1,200% year-over-year (YOY) growth in revenue between 2019 and 2020. Further, this business is scalable and Modal Living has plans to expand into other markets like hospitality, multi-family homes and affordable housing.
Modal Living is basically mitigating the housing crisis with affordable, stylish and sophisticated modal units that still meet high standards. You can invest in Modal Living on StartEngine with a minimum investment of $250.50.
Equity Crowdfunding Opportunities: Doroni Aerospace
Next up on this list of equity crowdfunding picks is Doroni Aeospace. Is the future of personal mobility an aerial mode of transportation? Is achieving a stylish, safe, green and cheap sky-bound alternative to conventional cars a more realistic goal than we might first think? Doroni Aerospace believes that flying vehicles could be the next mobility solution and available as soon as 2024.
The H1 EVTOL (electric vertical takeoff and landing aircraft) being developed by this company is safe, efficient and “environmentally sustainable,” bringing science fiction much closer to reality. According to Doroni Aerospace, any adult with a driving license and only a 15-hour training course will be able to operate this EVTOL once produced.
The Urban Air Mobility (UAM) market is a very fast-growing market as well. In fact, according to the company, it could surge to $1 trillion by 2030 and to $1.5 trillion by 2040 with a CAGR of around 30%.
This fully electric flying car has an estimated cruising speed of 100 miles per hour (mph) and a max speed of 140 mph. It also has a range of 60 miles. The expected price for the vehicle will be $135,000 which, according to the firm, is considered competitive.
You can invest in Doroni Aerospace with a minimum investment of $250.
Esker Cycles by Krueger Outdoor
Next up on this list, Esker Cycles makes mountain bikes that are durable, versatile and equipped with advanced technology to deliver a unique riding experience. This technology enables quick cornering, stability and speed on any terrain. There is plenty of flexibility here, too — consumers can choose among four frame designs, four colors and three specification levels. What’s more, four additional models are to be launched in 2022.
The global bicycle market is a multi-billion market estimated at $54 billion in 2020. The mountain bilking market is also fast-growing with an expected CAGR of 10% up to 2027.
Esker Cycles has already implemented a competitive advantage in this market based on pricing, offering 5% to 7% better prices compared to its competitors. The company also has plans to scale and maximize profit margins. The firm estimates that, once it reaches 2,000 units, its expected net margin will be in the range of 15% to 18%. This margin and sales, in general, could improve more as a result of adding new models, customized orders and more.
You can invest in Esker Cycles on the StartEngine equity crowdfunding platform with a minimum investment of $231.
Equity Crowdfunding Opportunities: Foundry Michelangelo by Treasure Investments
Last up on this list of equity crowdfunding picks is Foundry Michelangelo. This name is a fine art company that owns a plethora of original statue castings as well as the molds to cast sculptures in various precious materials.
The traction for Foundry Michelangelo is not just present — it’s gaining momentum. In 2017, sales came to just $391,650. In 2018, however, the company generated revenue of more than $1 million. That grew to $2.4 million in 2020. In 2020, the company also reached profitability.
In any business, exclusivity in any area is a very positive factor that can boost sales and help growth because it supports an economic moat. Foundry Michelangelo has an exclusive mold collection, considered to be among the largest. The company owns about 2,000 original master molds from more than 230 famous artists across history.
You can invest in Foundry Michelangelo on the StartEngine equity crowdfunding platform with a minimum investment of $240.
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.