SAFE, Equity, etc. Find out everything you need to know about different security offerings in today’s post. What are the top equity crowdfunding sites of 2020 for both investors and entrepreneurs? Intermediaries that have extra due diligence or deal curation (above and beyond the required Reg CF checks) are: The intermediaries in the Top 10 that do not perform additional due diligence or deal curation are: Issuers should reflect on whether their business will pass additional due diligence in advance. Remember to balance this with what the platform offers in terms of investors, though. Jumping into the equity crowdfunding world can be scary for new investors. All else being equal, who would you rather go with – a funding portal that has a few deals a year, or a platform that helps launch dozens of deals a month? Startups should look at the types of deals currently live on each platform to get a feel for whether investors on that platform will be comfortable investing in your business. That being said, it is nice to be able to pick up shares of a company that you perhaps missed previously, or even acquire more shares of a company that you believe in. Read more, Localstake is an investment crowdfunding platform specializing in smaller, local businesses, usin... Read more, StreetShares is a small-business lender with a focus on serving veteran-run businesses, but is op... Read more, TruCrowd offers equity crowdfunding to startups and opportunities to invest for novice investors,... Read more, Netcapital is an investment crowdfunding using Reg CF (and Reg D for side-by-side offerings) to o... Read more, One of the few crowdfunded real estate platforms open to non-accredited investors, Small Change f... Read more, Founded in 2009, MicroVentures was among the very first online venture-investing platforms. edly is an alternative investment platform offering “income share agreement” investments in the future earnings of college students. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All else being equal, startup investors should be investing on platforms that best align with the types of deals and investment opportunities that they are looking for. 1. Some portals, such as SeedInvest, include most of their fees in their overall percentage that they take upon successful completion of the campaign. This helps Wefunder companies by allowing all crowdfunding investors to show up as a single line-item on the corporate cap table. Again, you should consider your first equity crowdfunding investment as a learning experience and an experiment. Low investment minimums Several platforms offer referral bonuses for startups and those who refer them to the platform. Common Stock vs. SAFEs) Secondary Market options (for increased liquidity) Payment forms accepted (credit card vs. ACH vs. wire) In general, the top three platforms (Wefunder, StartEngine, and Republic) alone account for over 80% of 2020 total Reg CF deal flow in terms of the amount of capital raised. This is important because the platform will be better able to advise you on favorable terms for that security type, and investors will be more familiar with assessing deal terms for that type of security. With the high risk of failure in equity crowdfunding, what are the returns that investors can expect? whether all crowdfunding investors will appear as a single line item on your cap table or as individual lines (one per investor). Thus, investors looking to source the highest-quality deals should be looking at least across these portals, as the majority of successful deals come across these three funding portals. They are distinguishing themselves among Title III Funding portals with a standout social user interface, including neat features like investment groups, as well as ultra-low minimums (as low as $10 for some investments), which is quite low even among crowdfunding portals. Minimums ... Read more, FundingCircle offers fractional investments in small-business loans (P2P lending). Proudly built with Jekyll. Most of these (for example, StartEngine) have both a funding portal and a BD to be able to handle different offerings and situations; however, there could be a few BDs who aren’t on the funding portal list. The founders include alums from both Uber and AngelList, bringing strong startup credibility to the platform $ 100 does... Include alums from both Uber and AngelList, bringing strong startup credibility to the Crowd! In 2020 offering “ income share agreement ” investments in Facebook, Twitter, and crowdfunding... 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