Another option for finding promising startups to invest in is to use a platform like AngelList that allows accredited investors to passively invest in startups. Crowdfunding has opened up investment in small businesses to the public. Platforms like Crowdfunder allow people to contribute as little or as much money as they want to a small business. While not all crowdfunding campaigns will achieve their goals, some have been highly successful.
For example, the brewing company Brewdog has built its success thanks to thousands of crowdfunders who bought it for the first time. StartEngine is one of the largest equity crowdfunding platforms in the U.S. UU. The company works closely with startups to create creative campaigns that reach investors.
StartEngine has a design team that helps startups secure their investments and provides entrepreneurs with their own administrator account and drag-and-drop tools. OurCrowd, a stock-based platform, helps invest in startups by working with global entrepreneurs. FundersClub fully invests in startups that accept, even if they only accept 2% of them a year. FundersClub prefers start-ups that have enormous growth potential and advantages.
In exchange for using their platform, startups must give up a percentage of the profits they make from any funding. The FundersClub also has start-ups from private teams that have already gone through the trials and tribulations of founding a startup and selling it. Startups can launch a campaign on Indiegogo and receive funding from sponsors in exchange for rewards. The more funds raised, the more resources Indiegogo offers to help promote the campaign.
Investor Hunt is a little different from the other platforms on this list, as it's more aimed at connecting startups with resources. As one of the oldest online investment platforms, Wefunder claims to have helped most founders create successful businesses. Wefunder differs from many other platforms because they offer convertible bonds, meaning that the money invested can be converted into shares later on. There are no initial fees, but Wefunder accepts a 7.5% reduction once the trade with an investor has been closed.
The only drawback of mentoring is that, like startups looking for capital, there are thousands of founders who they are looking for mentoring. With what will often only be a small initial investment, a successful start-up could quickly grow into a highly profitable company, meaning that, if one of the first investors, it would make great profits. Only 39% of new businesses survive five years, meaning that while there's an opportunity to make money, you're also risking your money at a time when many businesses are facing difficult circumstances. The performance figures cover the entire period during which the investment was made in the company through Seedrs, which will vary from company to company.
In fact, startups can search the huge database before they are even accepted to see if there is the right type of investor for their business. An initial public offering (IPO) is when a private company allows members of the public to buy shares in a company for the first time, in exchange for a portion of the profits in the future. While some of the more traditional ways of investing in a company may still apply, such as buying shares in an initial public offering (IPO), crowdfunding has become a popular alternative for people who want to invest small amounts in new companies.
