So you want to invest in unicorns? ??

So you want to invest in unicorns? ??

...but you are not Mr. Wonderful.

We have you covered! Today we will explore how to source quality deals via equity crowdfunding platforms.

In a previous edition I explained how to set up your investment thesis, so if you have not read it yet, check it out.

Multiple equity crowdfunding platforms are available to you to invest in a wide range of projects in multiple geographies; from Wefunder , Frontfundr , Republic , Seedinvest , Startengine to only name the main ones in North-America.

I am very bullish on equity crowdfunding?platforms and the best proof point is that years ago I invested in Wefunder and Fronfundr. I am also a board member of Frontfundr.

My first fintech investments were made online through these platforms, and my most recent investments, such as CAARY Capital , were also made through equity crowdfunding platforms .

There are multiple benefits of investing through online platforms.

The first one is that the deals are already sourced, the documents put together, the valuation set. So it really is a turnkey. Yes you pay fees for that service… which FMP makes sense considering the value provided.

The payment is also very simple, you just have to link your account after filling a few forms and this is done.

Another great benefit is that the deals are carefully selected. In average, platforms REJECT 90-95% of the deals submitted. So you are only seeing the best deals. Keep in mind that a platform has absolutely no interest in showing you “weak” deals. They would lose money and damage their reputations. Does it mean that every deal will be a 10 bagger, of course not, even the best VC invest in dogs. But the deals presented have a certain quality to them.

Doing your DD is quite easy as all the docs are already nicely packaged, you have information on the amount of capital already raised, the number of investors and sometimes the lead investor & co-investors .

Another great benefit, is the wide range of deals you can access on these platforms. As I write these words on the main 5 equity crowdfunding platforms I mentioned earlier more than a 1,000 opportunities are available in multiple industries; from technology, food& beverage to health& wellness and real estate. And if you want access to another geography you can look at another platform present in that market. Beware of tax implications, exchange rates and the like though. Some geographies also require for foreign investors to be accredited.

And every time I have wanted to get in touch with the CEOs of the companies, I have always been able to…as long as you provide value, entrepreneurs will be willing to chat.

Last but not least the minimum investment is very low (sometimes as low as $100). It gives many of us the opportunity to participate regardless of the amount of capital we have available. It is also a wonderful way to learn without big capital commitment.

And if you just want to learn, you don’t even have to invest $1, you register on the platform and you check out the deals! It is actually a great idea to spend some time looking at deals prior to making your first investment, to get an idea of the information provided and familiarize yourself with the lingo, valuation, terms, and so on.

So crowdfunding is for me the best tool for budding angel investor, and also confirmed investor. It is super-efficient, safe and it is fun too!

If you want to learn more about crowdfunding platforms, I wrote an article on that topic last summer.

As an investor, I highly recommend exploring equity crowdfunding platforms for your next deals. As a board member and advisor, make sure the companies and entrepreneurs you are involved with have equity crowdfunding on their radar for their next raise. And if you are an entrepreneur, you just found a way more efficient way to fundraise (and so much more pleasant too??).

If you have not Subscribed yet, please do so now and Unleash your inner private investor! If you enjoy videos, you can follow me on YouTube for more insights and you can also check my website .

Take care and keep investing!!

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You know we love the crowdfunding model, Peggy! Great to see this post.

Brendan Kenalty

Using Education to help Financial Professionals grow ??

2 年

Interesting Peggy Van de Plassche. thx for sharing. Do you happen to have a comparison of platforms...showing which are best aligned based on our industry / market / stage / financial metrics etc. ??

Daniel Summers

Integrating Commercial Real Estate, PropTech, And Capital Raising.

2 年

You should also add eVest Marketplace (www.evestmarketplace.com). THE place for alternative investment opportunities. From real estate to cannabis to start-ups to manufacturing. eVest Marketplace adds new opportunities to invest every day.

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