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 67,000 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.
- Million Marker
- Vital Leaf
- Orbital Assembly Corporation
- Sentry AI
- The Residences at Diamond Ridge
- Ciari Guitars
Now, let’s dive in and examine each one.
Equity Crowdfunding Offerings to Buy: Million Marker
Thanks to the tremendous ramp up in connectivity platforms and technologies, you can safely engage the digital economy knowing that someone has your back. For instance, credit card companies monitor your transactions, utilizing artificial intelligence to identify anomalous transactions relative to your usual purchasing behavior.
But as important as our financial health is, nothing compares to our personal health. Further, in part because of the rising level of technology, there have never been more chemicals floating in our environment, waiting to disrupt unwitting hosts. Fortunately, Million Marker, an equity crowdfunding offering on the MicroVentures network, provides chemical exposure monitoring services, providing feedback on what you’re exposed to and guidance on how to mitigate the problem.
And it is a serious problem. According to Million Marker’s investor prospectus, approximately 70% of chronic disease risks are likely caused by “environmental variables.” Other studies corroborate this claim. For instance, Statista.com notes that pollution kills 8.3 million people annually. For perspective, the novel coronavirus pandemic has killed 2.35 million people worldwide.
From an investment perspective, the jump in demand for healthier food and beverages should align very well with Million Marker’s mission. Plus, the Covid-19 crisis has emphasized the importance of maintaining health standards. To learn more about Million Marker’s goal to improve the human condition, please visit its MicroVentures profile.
There is absolutely nothing positive about the SARS-CoV-2 virus, let’s be clear about that. However, the societal response toward the pandemic has resulted in opportunities for individuals to rethink prior assumptions. Personally, I believe that we could see a paradigm shift in cannabis perceptions.
One glaring factor that makes the coronavirus unique from other calamities that affected the U.S. (and the rest of the world) is that everyone has been impacted in some manner. For millions, the disruption to our schedule has caused widespread insomnia. While I’m not suggesting that cannabis will cure such a condition, people will likely seek out these botanical therapeutics for its relaxation properties.
However, product and industry evangelism has always been a challenge for cannabis advocates. That’s why I’m excited about the upside potential for private investing venture Vital Leaf. Specializing in organic cannabidiol (CBD) products, Vital Leaf offers the myriad wellness benefits of cannabis without the psychoactive reaction associated with the much-maligned plant.
Better yet, Vital Leaf’s CBD is packaged in a format that’s palatable for anyone, particularly its CBD-infused chocolate bars, which look like they came fresh out of a premium confectionary store. I think it’s easier to promote the wellness component of cannabis rather than shove accoutrements that might appear on a Cheech & Chong movie.
So if you’ve got the munchies, head on over to Vital Leaf’s investor pitch deck.
Orbital Assembly Corporation
Source: Jurik Peter/ShutterStock.com
Due to expanding economic prosperity, consumer discretionary income worldwide has increased substantially over the last several years. Therefore, it’s no surprise that the global tourism industry has breached trillion-dollar territory. However, our planet is extremely small relative to the vastness of the universe. Potentially, in the many centuries ahead, space tourism can equal, if not exceed, the terrestrial tourism market.
Further, you can see evidence of rising interest in the sector through recently soaring demand in Virgin Galactic (NYSE:SPCE). As well, experts believe that the space tourism market can reach $1.7 billion by 2027. While that’s an impressive tally, I believe Orbital Assembly Corporation, one of the most ambitious equity crowdfunding plays on the Netcapital platform, would find that figure to be small potatoes.
Orbital Assembly is quite literally shooting for the stars. Specializing in the design, manufacture and assembly of large structures in space, management envisions an entire space ecosystem. In particular, the company has garnered much attention on mainstream media with its plans to launch a cruise-ship-like hotel in space.
And don’t worry – Orbital has you covered with a rotating platform that mimics the gravitational force of Earth. So you won’t have to learn how to do your business while floating around in the bathroom.
While the entire concept sounds like science fiction, Orbital assures equity crowdfunding participants that the fundamentals are solid. If you want a truly paradigm-shattering private investing offer, I’m not sure you’re going to find anything more ambitious than this.
One of the people I follow for sociological reasons is Robert Kiyosaki, author of the Rich Dad Poor Dad series of books. Frankly, I’m fascinated that someone who looks like me can sell pretty much anything to the broad American audience and not get run out of town.
I mean, the man co-authored a book with then-real estate mogul Donald Trump. And that’s what good salesmanship can do for you. If you’ve got sales skills, it transcends everything.
However, the Kiyosaki model is not reality. According to a 2018 Forbes article, 57% of sales representatives missed their quotas in the prior year. It’s a huge opportunity gap, not only for the individual sales reps but for the underlying organizations. Fortunately, this is where ChipBrain comes in.
By utilizing artificial intelligence, ChipBrain drives innovations in emotional intelligence. If you observe salespeople like Robert Kiyosaki, it’s not so much what they say because let’s face it – giving advice like join a multi-level-marketing firm isn’t really good advice. Rather, it’s how they say it and being able to connect with their audience.
Through real-time feedback, ChipBrain can steer sales pitches to more productive trajectories. As well, the platform provides “post-mortem” feedback, assessing what went right and what didn’t. With arguably most sales pitches now occurring online, ChipBrain fortuitously is one of the most relevant equity crowdfunding opportunities.
To get plugged into this private investing venture, check out ChipBrain’s pitch deck.
Security cameras are a funny deal. Although they help with criminal investigations and for insurance filing purposes, they don’t actually do much to prevent crime; they just record that a crime was committed. Additionally, cameras aren’t always effective. From inclement weather to lighting changes/lens flare to obstruction from myriad objects and living creatures, anything can potentially block or impede the view.
Moreover, having in-person security isn’t always the answer. Humans are humans – we get tired, we need to use the facilities or something distracts us. It’s in those moments that a crime can occur. To address these critical gaps, Sentry AI, a pertinent offering on the Republic equity crowdfunding network, delivers smart technologies into security infrastructures.
Primarily Sentry AI, as the corporate name suggests, utilizes artificial intelligence to provide 24/7/365 security coverage, recording activities and analyzing individual behavior. In conjunction with a monitoring team, Sentry AI alerts authorities regarding potentially dangerous or suspicious behaviors, thereby preventing crimes from happening in the first place.
Plus, because everything is based on AI, it eliminates much of the troubling social issues that often arise in security-based confrontations. Further, Sentry AI is a relevant equity crowdfunding play due to the very real possibility of rising crime because of the current recession.
To find out how machine learning is forever changing the security industry, please visit Sentry AI’s private investing pitch deck.
The Residences at Diamond Ridge
When the Covid-19 crisis first breached our shores, it seemed that buyers would enjoy another discount a la the housing bubble and subsequent Great Recession. That assessment was dead wrong. While we are in an economic downturn, the government responded through aggressive monetary and fiscal action, leading to a seismic drop in interest rates.
Naturally, this cued the well to do to buy up real estate and other assets in this cheap money environment. Good for capitalism, I suppose, but these events ended up skyrocketing real estate prices. Therefore, the home purchasing segment of this industry is a tough arena to navigate.
However, The Residences at Diamond Ridge provides an equity crowdfunding opportunity to invest in rental property. Located very close to downtown Winston-Salem, North Carolina, Diamond Ridge is situated in a prime location, facilitating easy access to business and entertainment.
More importantly, the Carolinas are one of the top destination spots for millennials. And I’m not just talking about the migration away from heavily crowded urban centers due to Covid-19. No, this migration had been occurring well before the pandemic. Thanks to lower costs of living relative to major U.S. metropolises and a more relaxed, family friendly environment, North Carolina generally and Winston-Salem specifically have much to offer.
Plus, someone’s got to feed that demand for rentals, which is where Diamond Ridge comes into the picture. To get more information about this private investing venture, check out the company’s pitch deck on Republic.
Ciari Guitars truly epitomizes what equity crowdfunding is all about: solving problems that many other people have and allowing regular folks to participate and profit from the innovation. For Ciari, the concept of its remarkable and frankly mind-blowing invention of a foldable guitar materialized when the founder explored ways of making guitar transportation easier.
You don’t have to be a musician to recognize the cumbersome nature that traveling instrumentalists face. Especially with a guitar, its physical profile is dramatically extended because of the fretboard. However, it’s not enough to create a foldable fretboard because the guitar strings are calibrated to a specific pressure range. Mess with that and you’re going to have some potentially dangerous problems.
And that’s the beauty of Ciari Guitars, which is featured on the WeFunder private investing platform. Beyond its fretboard folding mechanism, the platform features a tensioner, which can be adjusted depending on whether you want to play or stow for storage. This immediately solves the guitar transportation issue because your instrument can now fit in a standard airline-approved carry-on bag.
Most importantly, expert musicians have tried the Ciari guitar and it plays remarkably well. Thus, this isn’t a cheap gimmick designed to address the transportation problem. Rather, it’s premium-crafted guitar that happens to be easy to carry.
I think this has the potential to turn the music world upside down, in a good way of course! For more information, head on over to Ciari Guitars’ WeFunder 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.
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.