Many small businesses need money to grow, but less than 1% of them receive venture capital funding. In May 2016, the SEC enacted Title III of the JOBS Act, which gave non accredited investors the ability to invest in startups. Crowdfunding enables large groups of people to pool their money in the form of small investments to help entrepreneurs get their projects off the ground or take them to the next level.
Suppose you’ve always been interested in the idea of investing in startups but don’t know where to start. Check out these popular equity crowdfunding platforms. You can get started for as little as $100.
Startengine was launched in 2015 and was the first-ever equity crowdfunding offering. They believe that everyone should have the ability to invest in the companies they think will win. They’re also the only equity crowdfunding platform to raise money from the crowd too! Here’s their crowdfunding page.
Wefunder says to think of them as “Kickstarter for investing.” It was initially created because the founders wanted to invest in their friends and support causes they cared about, like revitalizing American manufacturing and researching cancer. They aim to make capitalism work better by helping thousands of potential founders.
Republic was founded in 2016 by alumni of AngelList, an online investment platform for accredited investors. Their mission is to democratize startup fundraising and investing. They love mission-driven startups and encourage startups with diverse teams and backgrounds to apply to raise money.
SeedInvest believes you should be able to own a piece of your favorite startup with ease. They’re made up of investors and entrepreneurs with a passion for building future innovation. They have a comprehensive due diligence process and only accept 1% of companies that apply.
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