The investment or equity crowdfunding industry has seen a significant increase in popularity in the past year, with the JOBS Act being passed by the US Congress to encourage startup funding and making it easier for small businesses to raise money. With new opportunities on the horizon for both accredited and non-accredited investors, we dive into the ins and outs of equity crowdfunding and the benefits of investing on such platforms.
The first and most obvious benefit of equity crowdfunding is the access to an investment class typically associated with accredited investors and high net-worth individuals or angel investors. Average investors are now able to participate in high-growth technology startups and enjoy a done-for-you investment due diligence process. The ease of starting to invest is an added advantage – with most crowdfunding platforms accepting verified and unverified investors alike.
With a variety of investment options to pick from, the opportunity to diversify your investment portfolio with alternatives such as startup investing can be a boon if you find a winner. That said, given the ability to commit smaller amounts into crowdfunding, this investment class allows for clever diversification of your portfolio risks, whether your portfolio runs in the thousands or in the hundreds of thousands.
With the rise of a new generation of cause-conscious consumers, equity crowdfunding allows you to pick the winners that you can identify with and get behind. A new generation of investors and consumers demand that every dollar spent must be a dollar for good. Equity crowdfunding democratizes this opportunity for doing well, while doing good. Every dollar invested can go a much longer way in creating a better society for all – whether through job creation to creating environmentally conscious solutions, to simply, helping humans act, think, and do better – like what we set out to do at Supercharge Lab.
Of course, one of the biggest benefits in investing in equity crowdfunding is the opportunity to participate in the financial upside of a high-growth business. From Oculus Rift to SpaceX, equity crowdfunding is not merely for an unknown venture trying to wade through a dark ocean. Many undiscovered startups start off on crowdfunding platforms, and the benefits of the campaign go beyond the immediate cash inflow – a large proportion of startups go on to create jobs, grow their revenues and ride the wave of increased virality and reduced marketing costs.
Equity crowdfunding has come a long way since the early days of backing hardware that was yet to be tested. You’re joining big-named investors like the Drapers to Randi Zuckerberg, participating in opportunities that target trillion-dollar markets. Supercharge Lab will launch its equity crowdfunding campaign on Republic in June 2021. Stay tuned to this thread as we discuss our fundraising campaign and this investment opportunity.