Amid all the terrible news associated with the pandemic, there is one bright spot. With millions of American workers finding extra time on their hands, many have turned to the stock market. Given the influx of fresh blood, it’s been an exciting time. However, by limiting yourself to only publicly traded organizations, you miss out on several innovative companies to invest in.
However, thanks to equity crowdfunding platforms like Netcapital, everyday people have an opportunity to become private investors. Previously, various regulations prevented access to private equity. But with advancing technologies and changing laws, today’s retail market participants have unprecedented access to formerly exclusive sectors.
In the long run, this should be a net positive for both investors and the various private companies to invest in. For starters, young enterprises can now tap the power of equity crowdfunding to raise capital for their growth initiatives. This may be a better option than seeking loans, which organizations obviously must pay back.
For the private investor, Netcapital stocks provide a ground floor chance to acquire equity in promising businesses. While taking your shots in the public markets is great, you’re buying into an already fleshed out vision. With equity crowdfunding, you’re in the driver’s seat prior to the initial public offering.
However, it’s not all fun and games. Though you can expand the companies to invest in through Netcapital stocks, buying startups present risks. The harsh reality is that 90% of new startups fail. In addition, 75% of venture-backed startups fold. Therefore, you must exercise extreme due diligence before pulling the trigger. Even if you do, that’s no guarantee you’ll make money.
Still, if you ever dreamed of buying the next big thing before the IPO craze, Netcapital stocks is one viable platform to help you realize that passion. Here are five companies to invest in with potential upside.
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As you know by now, electric vehicle makers represent some of the hottest companies to invest in. And one that could generate massive buzz among Netcapital stocks is Shockwave Motors. Billed as a high-performance, three-wheeled, three-passenger car, Shockwave EVs have the convenience of a legitimate commuter car but without the environmental impact and onerous fuel costs.
At first, you might be tempted to write off Shockwave as a dumb idea – three wheels? Really? But this isn’t an entirely crazy or exclusive idea. For instance, Electrameccanica Vehicles (NASDAQ:SOLO) attempts to fill the niche for electric-powered commuter cars. Similarly, the company’s flagship Solo has three wheels.
But the key difference is that Shockwave’s EV is more practical: the Solo only carries one person, the driver. In addition, the Shockwave is infinitely more attractive and compelling than the boring Solo. Sure, it’s just an opinion but look at the two and get back to me. I’m sure we’ll find consensus.
If you want to put Shockwave on your list of Netcapital stocks to buy, you can do so for a minimum investment of $107. But hurry – the deadline to invest is August 25, 2020.
With how much we all have struggled during this pandemic, we simply don’t want to hear about another crisis. However, water resource shortage is a critical issue for which we absolutely must find a solution. Fortunately, we have innovative companies to invest in like WaterWorks. Helping to advance water technologies and innovations, WaterWorks primarily draws attention to a resource that we in the developed world take for granted.
According to Water.org, 785 million people lack access to safe water. Additionally, one million die each year from water, sanitation and hygiene-related diseases. As the WaterWorks investor pitch on the Netcapital platform mentions, it’s not just developing countries that are suffering. The scandal in Flint, Michigan proves that water-related concerns are impacting the U.S.
By investing in WaterWorks, the company distributes capital to various projects that help bolster or replace aging infrastructure. Further, the company is operating at the right time, with millennials being much more aligned with social issues than prior generations. Plus, this is one of the Netcapital stocks to buy where you can make a significant difference.
If you’re ready to dive in, WaterWorks requires a minimum $99 investment. The deadline is Sept. 30.
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Initially, video games were viewed as a niche sector for socially challenged nerds. Today, it’s a multi-billion-dollar industry, fostering its own innovations. One of them is the rise of eSports, which taps into the human urge of sporting competition but also caters to the millennials’ penchant for digitization. Further, with the pandemic, video game usage worldwide has skyrocketed.
These are positive developments for eSports. However, one problem with this arena is that viewers are passive. In other words, they’re not vested in the performance of their favorite teams. Backers Inc. changes this paradigm by utilizing the power of crowdfunding to support a tournament ecosystem where fans receive a share of the prize money of top-performing teams.
Better yet, Backers integrates an Ethereum-based blockchain in its business model to handle the associated transactions. While the technology in and of itself is interesting, ultimately, this blockchain architecture can potentially cut down on administrative costs.
If you want to include Backers in your list of companies to invest in, the minimum investment is $2. As well, the deadline is Sept. 4.
Wine is big business and only getting bigger, which is great news for online digital wine shopping experience Yahyn. Moreover, millennials have dramatically changed the underlying industry. In 2015, this demographic drank 42% of all wine consumed in the U.S. Even better, they report that they would spend more money on wine if they could.
But as millennials get older – and presumably earn more money – they’ll run into a key problem. With a library of options to choose from, it’s difficult to know which set of bottles is appropriate for a particular lifestyle. However, with Yahyn, the company takes the guesswork out of the wine business, leveraging technology to meet individual consumer needs.
Interestingly, millennials prefer drinking wine at home due to convenience and cost. And that perfectly matches Yahyn’s e-commerce business. Plus, the pandemic has reinforced the relevancy of contactless shopping, making this one of the more viable companies to invest in.
If you’d like to have a glass with Yahyn, the minimum investment is $133.14, with a deadline of Sept. 30.
Spring Rock Holdings LLC
If the pandemic has taught us anything, it’s that no matter how advanced we become as society, we can never overcome the need for core essentials, such as food and water. Moreover, the disruption to our food supply chains demonstrated fundamentally the importance of land and specifically farms.
However, getting involved in this specific real estate segment has been costly and confusing. But with the power of equity crowdfunding, new avenues have opened up, driving the case for Spring Rock Holdings LLC. By investing in Spring Rock, individuals collectively pool their funds to acquire high-value land and farms. Upon sale of those assets, investors split 60% of the profits.
Obviously, real estate is one of the most high-confidence investments you can make – they’re not making any more land. That right there makes Spring Rock one of the companies to invest in. More importantly, farmlands will likely soar in demand due to a rising population and therefore, increased resource consumption.
For those looking to get into agriculture, Spring Rock has a minimum investment of 58 cents. The deadline to invest is Oct. 1.
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. As of this writing, he did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.