Top 15 Equity Crowdfunding Sites – Entrepreneurs and Investors
With many new companies, traditional and VC funding options may be limited or much too costly. Over the past few years, equity crowdfunding has emerged as a viable source for growth capital while also providing an opportunity for investors seeking to participate in higher risk/reward ventures.
Regardless of the statistics that suggest only about half of all new businesses survive in the first five years, and a third remain in operation after 10 years, entrepreneurs and investors remain enthusiastic about the next big success. We all know and readily recall that UBER, AMAZON, and Apple were once very small and fledgling startups.
Crowdfunding is also an alternative to venture capital firms that make direct investments in early stage companies in exchange for equity stakes in the business. VC’s are often highly selective and typically invest in businesses that are already established, have demonstrated some form of meaningful traction and have a pathway to positive cash flow along with profits. They may also require large stakes and/or Board seats giving them more control in exchange for their funding.
To help you along, we have sorted out 15 of the Top Equity Crowdfunding Platforms that have shown their capabilities to consistently raise funds for all types of capital requirements and to open the door to investors. These firms differ on their approaches and the types of offerings they handle, so we encourage you to visit each one and decide who offers the best capital raising solution or investing options.
Top Equity and Debt Funding Platforms
Wefunder
Located At: www.wefunder.com
Wefunder touts themselves as a Public Benefit Corporation with a mission to save the American Dream. Join 146,827 investors who funded 176 startups with over $55.5 million. Most competitors require investors to put up at least $1,000 per company or fund, however, Wefunder offerings’ minimum investment thresholds can be as low as $100 – though many offerings require at least $500 or $1,000. Listed offerings range from funds invested in 10 to 15 early-stage companies to individual startups in the biotech, green energy, insurance, logistics, retail, and packaged food segments.
Wefunder’s comprehensive listings include: detailed sales metrics (often including easy-to-parse graphs and charts), summarized business plans, interviews with leadership, and a “Why We Like This Company” section written by Wefunder staffers.
Indiegogo
Located At: www.equity.indiegogo.com
Own a piece of your favorite companies and token sales. Brought to you by Indiegogo and MicroVentures. Just launched! Cryptocurrency, Blockchain, and ICO Investments. Indiegogo has helped thousands of companies raise over a billion dollars in perks campaigns.
Crowdfunder
Located At: www.crowdfunder.com
A global social network for equity and contribution crowdfunding for small businesses, startups and social enterprises. Where Entrepreneurs and Investors Meet. Join a global startup community of 200,000 members. Raise capital with our 15,000 accredited investors. Invest in startups alongside renowned lead investors.
Investors make nonbinding funding pledges (“reservations”) through the Crowdfunder platform, but the actual funding transaction takes place off-site. Company and fund profiles are incredibly detailed, with sales metrics, case studies, business plans, third-party analyses, and leadership profiles visible to the public.
MicroVentures
Located At: www.microventures.com
Invest in Startups and get access to early and late stage investment opportunities. MicroVentures is a full-service online platform for venture capital investments that is open to the public. We take the best parts of Venture Capital (connections, research, deal flow, mentoring) and combine it with the best aspects of Equity Crowdfunding (open access, ease of use, diversification) to give investors the best of both worlds. We have been an Online Venture Capital Investment Platform for over 6 years and, in that time, have offered over 250 investment opportunities and facilitated over $100M in transactions.
AngelList
Located At: www.angel.co
Build a diverse portfolio of early-stage startup investments. Private and oversubscribed deals. Invest alongside notable lead investors to access top deals. One investment gets you exposure to 100+ startups. For family offices, institutions, and financial professionals.
Targeted to accredited investors. Separately, AngelList operates a high-end job board that connects developers, engineers, marketers, medical professionals, and other talented job-seekers with early-stage companies looking for help. You don’t need to register as an investor to use AngelList’s job board.
EarlyShares
Located At: www.earlyshares.com
Join our vibrant community of accredited investors and enjoy the privileges of commercial real estate ownership: passive income, cash flow and asset appreciation. Investments on EarlyShares projects average 7% preferred returns and 18% IRR.
Every transaction on EarlyShares has been subjected to rigorous screening and compliance checks. Add commercial real estate to your investment portfolio with one of our selected offerings. Due to the high value of the assets involved, most opportunities require minimum investments of anywhere from $5,000 to $25,000.
Crowdcube
Located At: www.crowdcube.com
This is an equity-based UK crowd funding platform. Crowdcube has created an ecosystem of strong co-funding organizations from venture capital firms, institutions, and the UK government. Crowdcube makes investing accessible, affordable and rewarding by enabling everyday investors to invest alongside professionals and venture capital firms in startup, early and growth stage businesses. Start building an investment portfolio on Crowdcube and own a share in businesses you believe in.
Seedrs
Located At: www.seedrs.com
Seedrs makes it simple for you to buy into businesses you believe in and share in their success. Angel investors and venture capitalists invest alongside friends, family and tribes of supporters. Receive professional-grade protections through our unified nominee structure, so you can share in success. Our community is truly global, with active investors and entrepreneurs from 48 countries. From idea-stage startups to publicly-traded companies, there are plenty of businesses to buy into. We’re not just introducers.
Our team handles all documentation, admin and payment for both investors and businesses. Easily deposit, invest and raise investment in your local or preferred currency. Anyone can invest as much as they like into businesses they choose in exchange for full voting shares. Investors and businesses can easily keep-in-touch, online and off, throughout the investment lifecycle. We are authorized to hold and transfer funds in secure, dedicated client money accounts.
CircleUp
Located At: www.circleup.com
Connects investors with consumer-facing startups, mostly in the technology, fitness, food and beverage sectors. Most companies have at least $1 million in revenue, and all “have a tangible product or retail outlet.” CircleUp features company profiles with information about each company’s products, business model, leadership, retail partners, revenue, and more.
Through CircleUp’s DealFlow feature, platform-registered investors can see which companies are actively raising funds, view complete investment prospectuses, and request product samples, if available. There are two ways to invest with CircleUp: Direct Company Investments or Circles, which are index funds that purchase shares in multiple companies.
Fundable
Located At: www.fundable.com
Rewards-based crowdfunding, similar to Indiegogo, as well as equity crowdfunding. For companies interested in equity crowdfunding, Fundable provides hands-on help with onsite profile building, pitch construction, and even business plan development. Fundable’s basic company profiles are available to everyone. Registered users can request a prospectus and make nonbinding funding pledges through the Fundable platform.
RealtyeVest
Located At: www.realtyevest.com
For Investors, no fees, spread your risk and personalize your portfolio. Chose an Investment and select one or more investments and invest with as little as $5,000. RealtyeVest collects all payments from the borrower and handles all the accounting duties. We mail you a check either monthly or quarterly, depending on investment type. Investors are assigned their own personalized dashboard which can be visited at any time. RealtyeVest sends paper financial statements, either monthly or quarterly, depending on the investment type. Investors receive monthly notifications updating them on the progress or status of the property. For those wishing to leverage the RealtyeVest platform to raise capital for their real estate projects, get in contact with the company for more details.
Localstake
Located At: www.localstake.com
Investment crowdfunding for small businesses. Analyze financing options, connect with investors and close impactful growth funding all in one place. Connects investors with revenue-generating small businesses. Listed companies tend to be involved in consumer-facing enterprises, such as brewing, food production, and apparel manufacturing. Minimum investment thresholds typically range from $250 to $500. Offers four options: Revenue Share Loans, Convertible Debt, Preferred Equity, and Traditional Loans. Investors complete their investment in four easy steps.
PeerRealty
Located At: www.peerrealty.com
Focuses exclusively on real estate, mostly commercial and multi-family residential. Most opportunities are specific projects, such as already-completed apartment buildings and planned or under-construction office buildings. Multi-property portfolios are available, as well. Most PeerRealty opportunities require minimum investments of $5,000. PeerRealty is one of the only equity crowdfunding platforms that operates a secondary exchange where current investors can sell their shares to other PeerRealty investors.
SeedInvest
Located At: www.seedinvest.com
Specializes in “highly vetted investment opportunities” claiming to accept just 1% of applicant companies. Though its company profiles are mostly invisible to the public, registered investors have access to considerable descriptive and financial detail about each listed entity, plus direct access to founders or executives. Certain offerings (Reg D 506 (c) offerings) are exclusive to accredited users. Non-accredited investors can invest as little as $500 in Tier 1 and Tier 2 companies.
Manhattan Street Capital
Located At: www.manhattanstreetcapital.com
The company bills itself as the #1 Growth Capital Marketplace for Mid-Sized Companies. Use IPO, Reg A+ or regulated ICO to raise up to $50m. Investors, at any wealth level, can invest in mid-size and startup companies using Reg A+ and Reg A+ ICO. We assist companies through the whole Reg A+ capital raising process to achieve a successful Reg A+ offering. Our website technology integrates the necessary services, so companies can make their offering work efficiently on Manhattan Street Capital. Real Estate is currently the most successful segment using Reg A+. Among services that we provide through Manhattan Street Capital are: Research Analyst service for post offering coverage of our companies and Listing of company offerings.
In Closing
We believe that equity crowdfunding is a great way for entrepreneurs and small businesses to set fair valuations and raise money in a timely manner at an affordable cost. Investors benefit from the opportunity to support exciting new businesses and get in on the ground floor. Keep in mind, however, that equity crowdfunding also comes with a higher risk than investing in established companies, including publicly traded firms with proven brands, products, tested leadership, and a financial history that often includes years of positive cash flow and profitability.
If you’re thinking of using equity crowdfunding to raise capital, keep in mind there are costs associated with legal, accounting, listing and marketing, all of which are required to raise the desired amount. Consider working with leading professionals that can help you through the process and ensure every dollar you spend gives you the best opportunity for success.
If you need help in any aspect of launching or supporting an existing equity crowdfunding campaign, drop by and see us at The Ignite Agency www.ignitecfp.com or give us a call at: 949-829-1034.
The Ignite Agency has helped companies successfully raise millions through equity and non-equity campaigns on Kickstarter and Indiegogo!