It’s a well-known adage that the early bird gets the worm. In the investment market, many people, particularly speculators, operate under the same policy. Typically, this means buying into initial public offerings. However, thanks to favorable laws opening the door to equity crowdfunding and private investing ventures for the non-accredited investor (i.e., most of us), new opportunities have emerged.
One of the biggest drawbacks regarding IPOs is that they’re not really ground-floor investments. Rather, the lead up to a company’s debut on the public market has been fleshed out. Sure, many IPOs often have strong performances right out the gate, allowing speculators to enjoy quick profits. But Wall Street’s graveyard is also filled with myriad names that failed to catch on.
Although equity crowdfunding ideas are inherently risky, the allure is that if they succeed in the leadup to an IPO, chances are the real early bird investors can sell their holdings at an attractive rate. Often, private investing requires that gamblers hold their position in an illiquid market until the big IPO payoff. But to the victor goes the spoils.
Another reason to consider allocating some risk funds toward equity crowdfunding is that the concept has been gaining popularity over the years. According to data from McKinsey & Company, the value of alternative investments worldwide increased 125% between 2005 and 2013. So don’t be mistaken that private investing is a novel concept — pent-up demand has been brewing for decades.
Not surprisingly, the number of equity crowdfunding campaigns have been increasing significantly. In 2017, we saw over 38,000 pitches to private investing participants. Utilizing data from Statista.com, experts predict that by 2024, we’ll see 67,100 proposals. In other words, this sector is on fire, necessitating at least a rethink on portfolio growth.
Still, you must be aware of the risks. According to Forbes.com, 90% of startups fail. While you can deploy analytical methodologies to attempt to filter out which are the viable 10%, the raw odds absolutely do not favor you. At the very least, you could be looking at holding your private equity position for many years without any accrued benefits.
Therefore, it’s imperative that you perform due diligence on any private investing venture. Don’t be afraid to ask questions — the more difficult, the better. And above all, don’t take anything at face value until you’ve independently verified it yourself.
Here are seven equity crowdfunding opportunities to buy into this week:
Military Movies Productions
At Ease Rentals
Nevertheless, the bottom line is that if you want explosive growth, you must start in the earliest phase possible. With the burgeoning equity crowdfunding market, this previously exclusive opportunity is now yours for the taking.
Equity Crowdfunding Offerings to Buy: AeonCharge
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Thanks to a combination of broader concerns for sustainability and the novel coronavirus pandemic’s impact on the global automotive supply chain, electric vehicles (EVs) have become all the rage this year. However, not everything regarding the gradual mainstreaming of the EV market has gone smoothly. As an op-ed last year from The Atlantic explained, there are many hurdles for drivers used to combustion-engine cars to overcome.
Of course, one of those challenges is the “refueling” method. Since electrical charging takes substantial time relative to pumping gasoline into combustion cars, EV drivers must plan their routes according to charging station availability. But this process is frustrating as charging station apps are segregated based on geographic location, requiring drivers to download multiple apps. So, to take the confusion out of this necessary but cumbersome process, AeonCharge was born.
As one of the most relevant equity crowdfunding opportunities, AeonCharge represents a one-stop shop for EV drivers. With the company’s platform, users can access various charging networks, planning and booking charges with ease. According to the company’s Netcapital profile, two out of ten EV owners end up going back to combustion cars because of the inconvenience associated with charging. It’s possible, then, that AeonCharge can be the missing key to true mainstream electrical integration.
To find out more about this exciting private investing offer, check out its pitch deck on Netcapital.
Some might choose not to dwell on it. Nevertheless, it’s the topic that’s on everyone’s mind because how could it not be? Unlike other national crises that we’ve suffered, the novel coronavirus pandemic is one which has impacted virtually every American. But arguably, the emotional stress is greatest on singles, who don’t have someone else to rely on. Moreover, dating in the new normal can be incredibly difficult and awkward.
However, as Psychology Today notes, it can also be a benefit. Primarily, “Building an emotional bond first may be more likely than it has been in the past.” And that’s exactly what 3rdDegree specializes in.
According to its Netcapital profile, 3rdDegree is a “connection-building app that takes honesty and vulnerability to create high quality conversations. It encourages face to face communication to build a connection by two people getting to ask we all want to ask but don’t think or simply know how to ask.”
It’s a perfect complement to dating apps, and is incredibly relevant in our current environment. And while we have an ingrained need to connect with each other, currently, the focus is on contactless services. Fortunately, 3rdDegree helps us all feel a little bit more human while keeping us safe.
To learn more about this equity crowdfunding play, head on over to 3rdDegree’s pitch deck on Netcapital.
Equity Crowdfunding Offerings to Buy: Edly
For decades, going to college and getting a degree was considered the pathway to middle class success and therefore, a piece of the American Dream. Unfortunately, the academic industrial complex turned higher education into a racket.
Back in the first quarter of 2006, the value of outstanding student loans was just under $481 billion. That was already a lofty figure. But by the third quarter of this year, this metric is just under $1.7 trillion. At this rate, the student debt burden can hit $2 trillion within the next three years. And frankly, this is just unsustainable.
However, Edly may be able to help thanks to good old-fashioned capitalism. One of the intriguing companies listed on the MicroVentures equity crowdfunding platform, Edly provides an alternative to costly student loans through income sharing agreements (ISAs). According to the company’s profile:
“ISAs are a financing alternative that students can use instead of taking out loans to pay for their education. Instead of an interest rate, students agree to pay a set percentage of their future income. Upon graduating and after a short deferment period, students who earn above a minimum salary begin paying the percentage of income each month that was outlined in the ISA. Subject to a payment cap, the student will only pay for the agreed-upon number of months.”
Though I can see where some might find this arrangement controversial, in my view, ISAs bring students and capitalists together for mutually overlapping interests. It also encourages participating students to consider education programs that have definitive career paths.
To learn more about this important private investing offer, please visit Edly’s MicroVentures profile.
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As an athletic apparel and sports electronics audio gear accessories brand for men and women, Kobrelms seeks to inspire everyday people to achieve their fullest potential through physical fitness and wellness. It’s an amazing concept except there’s one issue — this sector is saturated to the hilt. How then can Kobrelms compete with other established brands?
In a cynical way, the Covid-19 pandemic provided many ideal backdrops for this equity crowdfunding opportunity. Primarily, in the new normal, there’s a recurring joke that you only need to look good from the waist up. And for the most part, worker bees are still operating from home as coronavirus cases soar. Indeed, CNN published an article suggesting that the health crisis “canceled” office clothing.
You know what that means — hello casual wear! Thus, we have an opening for Kobrelms to steal market share, particularly with millennials who prefer authentic brands.
And speaking of millennials, many of them are benefactors of the so-called K-shaped economic recovery. That’s because they’re tech savvy and are much more adaptable to change than older demographics. For them, their personal economy hasn’t changed that much. It may have actually improved because of reduced costs associated with pre-pandemic working life (i.e. commuting).
To learn more about this private investing offer, run don’t walk to Kobrelms’ MicroVentures page.
Equity Crowdfunding Offerings to Buy: Military Movies Productions
Easily the most intriguing equity crowdfunding play on this list, Military Movies Productions specializes in films that connect authentically with U.S. service members, particularly those who have served abroad in conflict zones. Starting off with Lonesome Soldier, this movie gets into the heart of what afflicts many of our uniformed warriors when the lights and crowds have turned away.
Initially, the immediate concern with such a private investing offer is that military-themed movies are a dime a dozen. However, this company — featured on the NextSeed.com platform — focuses on real stories. Typically, Hollywood-produced military movies center on entertainment value. And because of that, you’ll find mistakes that are distracting to service members; for instance, grooming not to regulations or saluting without a cover (hat).
With Military Movies Productions, this is an organization that is made by military veterans in the service of those who serve. Furthermore, it’s a double benefit. Civilians can gain greater appreciation for what our service branches undergo, especially the enlisted men and women who must perform the “grunt” work of our national defense policies. More importantly, the company provides a healthy medium for combat veterans to process their experiences.
To learn more about this opportunity, please visit Military Movies Productions’ NextSeed profile.
At Ease Rentals
Another military-themed equity crowdfunding venture on the NextSeed platform, At Ease Rentals offers a viable solution to an issue that has plagued military families for decades. As you know, service members are required to move to a new area frequently. In fact, according to the company’s profile, these permanent changes of station (PCS) occur every two to three years.
But the rub of this is that families must reside in temporary housing at their new duty station until a permanent solution is available. Unfortunately, there are many hoops involved in finding adequate temporary housing. What ends up happening all too often is that military families end up living in cramped hotel rooms.
Where At Ease Rentals comes in is offering PCS-impacted families a listing of pre-approved temporary housing solutions. Thanks to the company’s relationship with the Department of Defense, its offerings are far superior to the competition. As well, service members have the added comfort of knowing that their choices won’t be rejected due to capricious administrative reasons.
Plus, if you really want to make a difference in our military members’ lives while investing in a profitable concept, At Ease Rentals provides an unparalleled double whammy. If you want to get involved, march on over to the company’s NextSeed pitch deck. But you better be quick because the offer goes offline later this month.
Equity Crowdfunding Offerings to Buy: Stoneman Brewery
As one of the many interesting equity crowdfunding plays on the Mainvest platform, Stoneman Brewery is what you would call a Main Street business. And that’s the catalyst behind Mainvest: provide investors with an opportunity to put their capital into funding real brick and mortar businesses. With the dreadful impact of the novel coronavirus pandemic, there’s true demand for feel-good narratives that are well outside the elitist corporatocracy.
Specifically for Stoneman Brewery, the company is seeking private investing funds to design and build custom bar trailers. One of them is intended to be located on the Deerfield River in Charlemont, Massachusetts. This area is home to the Berkshire East Mountain Resort, which is a year-round destination for multiple outdoor activities. Once the crisis fades, pent-up demand could see sales soar for this idea.
In addition, Stoneman is currently exploring the idea of installing solar panels to their bar trailers. If so, with an investment in a battery storage system, its bar trailers can be 100% off the grid. Not only does this represent serious cost savings but it provides environmental, social and governance (ESG) cred, a not unimportant consideration these days.
To learn more about Stoneman Brewery, head on over to its Mainvest profile.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.