In this clip from Industry Focus: Tech, Motley Fool analyst Dylan Lewis interviews Indiegogo founder Slava Rubin and MicroVentures founder Bill Clark — about how investing in
equity crowdfunding deals is different than investing in the stock market, and how companies like MicroVentures and Indiegogo perform due diligence on the projects and companies for which they enable funding.
In the U.K., for example,
equity crowdfunding deals reached about # 332 - million (around $ 553 - million Canadian) in 2015, up from # 84 million in 2014.
There was no way most financial planners would have time to research single
equity crowdfunding deals on behalf of clients, said Will Hamilton of Hamilton Wealth.
But it's important to carefully weigh your options before jumping into the fray, says Aaron McDaniel, CEO of
equity crowdfunding deal aggregator Access, a mobile app slated to launch this summer.
Already, we've been able to secure exclusive first access for our members to a hot upcoming
equity crowdfunding deal.
Here are our biggest tips for how to vet and complete due diligence before investing in any online
equity crowdfunding deal.
Not exact matches
Mittal's FundersClub, founded in 2012, isn't to be confused with AngelList or other
equity crowdfunding platforms, instead functioning as an online venture capital firm where high - quality
deals are sourced for over 17,000 accredited investors.
Be smart and choose an
equity crowdfunding platform that makes a large group of investors appear as a single investor so you won't have to
deal with the hassle of communicating with backers on an individual basis.
We take the best parts of Venture Capital (connections, research,
deal flow, mentoring) and combine it with the best aspects of
Equity Crowdfunding (open access, ease of use, diversification) to give investors the best of both worlds.
As an
equity investor in a
crowdfunding deal, you can expect distributions.
Real estate
crowdfunding platform RealtyShares has introduced its first
equity deal, initiating itself into a select group of startups that are treading carefully as they seek to capitalize on looming changes to financial regulations.
I do JV
Equity deals, but with investors I know, not on
crowdfunding sites.
So
equity crowdfunding sites have incentive to negotiate the best possible
deal for investors.
The New York based firm has so far successfully navigated through blue sky laws in three states, Washington, Virginia, and Maryland, to allow individual investors with as little as $ 100 to participate in
equity real estate
crowdfunded deals.
On May 14th, everything changed, as six Canadian provinces endorsed
equity crowdfunding by implementing rules that make it easier for early stage companies to raise capital and opening up the opportunity for the ordinary investor to participate alongside seasoned investors in private capital
deals.
Title III of the law
deals specifically with
equity crowdfunding and beginning May 16, non-accredited investors can begin financing startups in return for
equity.
This change in policy has allowed
equity crowdfunding platforms to consolidate
deal flow from around the country onto an easily accessible online platform, democratizing access across geographic and social lines.
Real estate
crowdfunding platform RealtyShares has introduced its first
equity deal, initiating itself into a select group of startups that are treading carefully as they seek to capitalize on looming changes to financial regulations.
We have two successful
crowdfunded placements of
equity in Austin - based development projects and I am used to
dealing with the
equity side of the house.
We help RE entrepreneurs figure out how to legally and effectively raise money for their
deals through private
equity funds, syndications,
crowdfunding, and other alternative investment strategies.
Real estate
crowdfunding platform RealtyShares has introduced its first
equity deal, initiating itself into a select group of startups that are treading carefully as they seek to capitalize on looming changes to financial regulations.
Title III of the law
deals specifically with
equity crowdfunding and beginning May 16, non-accredited investors can begin financing startups in return for
equity.
An affiliate of Arbor Commercial Mortgage is raising
equity for a San Antonio apartment, the fifth
deal for its nascent
crowdfunding business.