Editor’s Note: This article on equity crowdfunding is regularly updated to bring you relevant, up-to-date information.
We all know the early bird gets the worm. In the investment market, many people — particularly speculators — operate under that same policy. Typically, this means buying into initial public offerings (IPOs). However, thanks to recent laws opening the doors 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 with IPOs is that they’re not really ground-floor investments. Instead, the leadup to a company’s public debut has been fleshed out. Sure, many have strong performances right out of the gate, allowing speculators to enjoy quick profits. But Wall Street’s graveyard is also filled with plenty of names that failed to catch on.
On the other hand — although equity crowdfunding is inherently risky — the allure is that if ventures succeed in the leadup, the real early bird investors can sell their holdings at a nice rate. Often, private investing requires you to hold your position in an illiquid market until the big IPO payoff. But to the victor goes the spoils.
Another reason to consider equity crowdfunding is its gaining popularity. According to data from McKinsey & Company, the value of alternative investments worldwide increased 125% between 2005 and 2013. So, private investing is not a new concept — pent-up demand has been brewing for decades.
Unsurprisingly, the number of campaigns has also increased significantly. In 2017, we saw over 38,000 pitches to private investing participants. Based on data from Statista.com, experts predict we’ll see 67,100 proposals by 2024. In other words, this sector is on fire, necessitating at least a rethink on portfolio growth.
Still, you should be aware of the risks. According to Forbes, “90% of startups fail.” While you can deploy analytical methods to find the viable 10%, the raw odds absolutely do not favor you. At the very least, you could be looking at holding your position for many years without any accrued benefits.
Therefore, it’s imperative that you do your due diligence on any 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 verified it for yourself.
Nevertheless, the bottom line is that if you want explosive growth, you need to start in the earliest phase possible. With the burgeoning equity crowdfunding market, this previously exclusive opportunity is now yours for the taking.
So, without further ado, here are seven opportunities to buy into this week:
- Flower Street Docs
- Fog & Tree
- Viroment Equity
- Atom Limbs
Equity Crowdfunding Offerings to Buy: PetroFunders
With so much emphasis on go-green initiatives, investments related to the oil and gas sector seems terribly anachronistic. Indeed, with President-elect Joe Biden about to take over with Democrats controlling Congress, you would expect a new era of clean and renewable energy infrastructure. However, you don’t want to write off fossil fuels even if others have. And that’s what makes PetroFunders one of the more compelling contrarian opportunities among equity crowdfunding ventures.
Listed on Netcapital, PetroFunders provides an open door to private investing in the commercial grade oil and gas industry — a previously rarefied, exclusive field. More importantly, there’s never been a better time to speculate on fossil fuels. Because of the disruption of the novel coronavirus, capital providers are no longer looking for oil and gas deals. Instead, the narrative has flipped: the industry is now looking for capital as many companies must sell discounted assets to survive.
While so much is stated about the inefficiency of burning fossil fuels, many forget the other side of the equation: fossil fuels are energy dense. It’s this density that allows combustion-based cars to well exceed the range of electric vehicles on a price-to-price comparison. And until we have clean energy sources that lever the density and convenience of oil and gas, PetroFunders should have a fundamental upside to success.
However, if you want to jump aboard, the deadline to do so is Feb. 26, 2021.
With the Covid-19 crisis at the top of everyone’s mind, it’s easy to forget that other ailments such as influenza frequently affect our people and the economy. According to the Centers for Disease Control and Prevention, between 9.3 million to 45 million contract the flu every year. In the most serious of cases, it can lead to severe damage, even death. More frequently, though, there is a societal drag in the loss of productivity.
Furthermore, the pandemic has created paranoia, which may eventually lead to a loss of social trust as apparently happened following the 1918 influenza pandemic. Therefore, it’s never been more important to address influenza for our post-Covid world. And that’s exactly where Vymedic steps in to fill the gap.
A small pharmaceutical firm, Vymedic is the make of Vymune, an antiviral suppressor that has shown encouraging results from 10 years of laboratory and human clinical trials. As well, Vymedic states that Vymune has been granted 24 patents. Its claim to fame is that it can address both flu-like symptoms and the virus itself with incredible rapidity, according to patient and medical professional testimonials.
Intriguingly, Vymune is alleged to be effective against Covid-19, based on information provided by Vymedic’s Netcapital profile. If true, this puts Vymune at an incredible advantage because it is administered in tablet form and is non-strain specific.
For more information, please consult Vymedic’s investor pitch deck on Netcapital.com.
Equity Crowdfunding Offerings to Buy: Flower Street Docs
Though exciting and full of potential, equity crowdfunding always carries inherent risks. But a private investing venture levered to the film and entertainment industry? That’s a hit-or-miss affair. Like a comedic act, sometimes, you knock it out of the park and other times, you bomb. But bombing in this case can lead to severe monetary pain.
Having said that, I believe Flower Street Docs — one of the newest equity crowdfunding opportunities listed on MicroVentures — has a higher-than-usual chance for success. Under this investment, two documentary films, Meme Gods and When We Went MAD!, will be produced by Adam Corolla, Nate Adams and Mike August. And as fun, likely irreverent takes on popular culture influences and phenomena, I anticipate both films to perform very well.
In part, that’s because based on U.S. fertility rates, the audience size of non-millennials/non-Generation Z is larger than these two demographics. Simply put, older demographics just don’t understand younger people and their technology — viewing them as some sort of lab experiment. As well, older millennials may feel out of touch with the younger folks in that demographic spectrum.
Furthermore, Adam Corolla knows how to push buttons — and I’d bet there are more people that think like him than you might initially believe. The one constant of American politics is that people here generally don’t like to be told what to do or believe in. Corolla may be able to tap into this hidden frustration, making Flower Street Docs a surprising idea among equity crowdfunding offerings.
To learn more, head on over to Flower Street Docs’ MicroVentures profile.
Fog & Tree
According to the Pew Research Center, two-thirds of Americans support marijuana legalization. Really, this is a stunning development from just over two decades ago, when the statistics were flipped. Not only that, every surveyed demographic except the Silent generation (those born between 1928 to 1945) favored giving the green stuff the green light.
In addition, the incoming Biden administration, combined with Democratic control of Congress, should bode well for equity crowdfunding offerings related to cannabis. And with more states legalizing weed to various degrees, you’d think that it’s a matter of time before full federal legalization is achieved. However, product evangelization remains a priority, which is what underlines Fog & Tree.
I’ve covered plenty of publicly traded cannabis firms. Most of them attempt to compete on product/brand differentiation on the consumption level (i.e. edibles, tinctures, vaping, etc.). Unfortunately, this is a challenge, both on the differentiation front and because many people are hesitant to put cannabis in their bodies.
Here, Fog & Tree has a critical advantage — this company focuses on personal care, such as cannabis-infused fragrances and grooming products. By going the topical route, Fog & Tree can offer a gradation toward cannabis normalization; you know, instead of going full-bore and sticking a joint in someone’s mouth.
Moreover, the products are very elegantly packaged, which gives them disruption potential against mainstream personal care products. To get more information, please visit Fog & Tree’s investment prospectus on MicroVentures.com.
Equity Crowdfunding Offerings to Buy: Viroment Equity
Stuff. The kind that hits the proverbial fan. You know what I’m talking about. Typically, I don’t mention this topic because let’s face it — it’s unpleasant. But it’s also a fact of life in the broader agriculture and farming business. Particularly for pig farmers, the underlying waste product is awfully problematic.
Aside from the stench, pig manure only contains 0.4% nitrogen, making it one of the least beneficial manures. Traditionally, this has translated to very little economic conversion opportunities for this waste. Instead, it mostly incurs a financial cost to manage it. Because pig manure also has a vast footprint, the management process can be onerous.
Fortunately, Viroment Equity, listed on the WeFunder private investing network, has delivered a groundbreaking solution, creating a proprietary filtration process to remove water from the sludgy stuff, creating a valuable, reusable resource (though I probably would pass on drinking it — just saying). In addition, the remaining solid material is converted into nutrient-rich pellets, strongly mitigating the uselessness of natural pig manure.
Furthermore, the facility to house Viroment’s innovation creates demand for jobs, something that we can all use in this trying economic crisis. And don’t worry — Viroment’s filtration process also eliminates the odor associated with the brown stuff.
It may be a “dirty” business but it’s a compelling and potentially profitable one. To find out how you can invest in this creative equity crowdfunding opportunity, check out Viroment’s WeFunder profile.
Source: Phonlamai Photo / Shutterstock.com
Over at least the last few years, InvestorPlace’s Matt McCall has frequently urged his readers to consider investing in what he termed the Roaring 2020s. Essentially, we’re at a time when technological advancements across various industries are converging to catalyze a new era of remarkable innovations. Not only will this have an economic and societal impact, millennial investors are on the cusp of receiving the greatest wealth transfer in U.S. history from their baby boomer parents.
In that spirit, Atom Limbs may be one of the equity crowdfunding offerings you’d like to consider. According to the company’s WeFunder.com profile, Atom Limbs is the world’s first mind-controlled bionic arm. Researched, developed and refined for over 15 years, the bionic arm is ready to transition out of the laboratory and into the commercial market.
What makes Atom Limbs’ innovation remarkable compared to other prosthetic devices is its dexterity of capacity. From delivering 70 pounds of grasp force to being gentle enough to naturally handle a tomato, this next-generation artificial arm can dramatically change the lives of amputees and those that have suffered limb loss.
As well, it can restore independence and dignity to our wounded warriors. Sure enough, Atom Limbs received a $120 million grant from the Department of Defense, which from my perspective has been put to excellent use. To learn how you can invest in this remarkable private investing venture, please head on over to Atom Limbs’ Wefunder pitch deck.
Equity Crowdfunding Offerings to Buy: Akua
Though plant-based meat companies like Beyond Meat (NASDAQ:BYND) are all the rage these days, the concept doesn’t just revolve around personal health and fitness. The traditional methods we deploy to raise our crops and animal proteins at scale tends to erode our soil of nutrients, which can contribute to climate change.
In turn, climate change can make pandemics worse as animals interact with other species (including humans) they normally wouldn’t as they migrate to the poles, increasing our risk for contracting pathogens. It’s a problem that left unaddressed can create huge crises for future generations. Thankfully, Akua offers a solution through its plant-based meat products.
Listed on the Republic equity crowdfunding platform, Akua doesn’t just stand out for alternative meat. Rather, it’s the sourcing that makes it special. Utilizing what the company claims is the most sustainable food source, ocean-farmed kelp, Akua can essentially grow its food supply chain without freshwater, dry land, or fertilizer. Better yet, the source of the kelp comes from majority women-owned ocean farms in Maine, thereby ramping up its “ESG” cred.
Finally, you have notable personalities like Sir Richard Branson that endorse Akua, not only for its environmentally positive profile but also because the product tastes great: isn’t that what it’s all about for the customer at the end of the day? To find out more, check out Akua’s investment proposition on Republic.co.
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.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.