It’s a super exciting time to be alive. Why?
You can now invest in startups online!
There are a variety of sites that you can use to invest in startups in exchange for equity. You could invest in the next Facebook, Uber, or DropBox.
Some of these equity crowdfunding platforms will only allow investment from accredited investors. Others are open to all.
In this list, I’m going to be mainly covering US-based sites that you can use to find cool new startups working on innovative projects.
1. WeFunder
WeFunder was founded in 2011. At the time of writing, of the nearly $20 million raised under Regulation CF, this site has raised 65%. They’ve been aggressively growing in this niche.
Thus far, $37 million has been invested through the website.
2. SeedInvest
SeedInvest is an equity crowdfunding platform that was founded in 2011. You can browse startups to invest in, as well as take advantage of their auto-invest feature.
At the time of writing, $50 million has been invested using the platform. Similar to WeFunder, entrepreneurs can conduct Regulation CF, Reg D, and Reg A+ raises.
3. StartEngine
StartEngine was founded in 2011 and is another excellent website that you can use to invest in startups online. You can browse through startups that are offering investment opportunities under both Reg A+ and CF.
I had the cofounder of this site on my podcast, which you can listen to here.
4. AngelList
AngelList functions a bit differently from some of the other equity crowdfunding platforms due to the use of syndicates.
“A syndicate allows investors to participate in a lead investor’s deals. In exchange, investors pay the lead carry.”
You can also use AngelList to invest in a variety of startups and under the diversification option, private and oversubscribed deals. Thus far, over $10 million has been invested through the website.
The website also functions beyond simple seed investing. There is an employment program which links up job seekers with startups.
5. CircleUp
CircleUp is another website that you can use to invest in startups online. Most companies on CircleUp “conduct offerings in accordance with Rule 506 of Regulation D.”
As an investor, you also gain access to Helio, which is an AI that takes into account data points from consumer and retail companies in order to predict whether or not a company will do well.
According to the website, over $300 million has been invested since 2012.
6. FundersClub
FundersClub allows you to invest in “the world’s most promising startups.” At the time of writing, only accredited investors can take advantage of opportunities on the platform.
More than $80 million has been invested on FundersClub.
7. Microventures
Finally, Microventures is an equity crowdfunding platform that you can use to find startups to invest in. Entrepreneurs raise money on this site using Regulation D Rule 506 and Reg CF.
This means that both accredited and non-accredited investors can check out investments on Microventures. Over $85 million has been raised on the platform.
Conclusion
Not every platform is created equal. The main difference between the various platforms is the type of regulation that investments are conducted under. These include Reg D, Reg A+, and Reg CF.
At the time of writing, no one clear winner has emerged as the lead equity crowdfunding platform. Stay tuned, because I think this space is going to get VERY interesting in the coming years.
