Equity Crowdfunding Starts Today — Here’s Where to Find Startup Investments

Published on May 16, 2016

By Dave Freedman

Today is the launch of equity crowdfunding. I’m talking about “true” equity crowdfunding under Title III of the Jumpstart Our Business Startups Act of 2012. Title III lets everyone invest in startups and growing businesses via crowdfunding portals.

Here are four places to start looking for Title III offerings:

  • Wefunder (www.wefunder.com). Wefunder has 10 Title III offerings (entertainment, telecom, biotech, retail/community development, food/beverage, consumer product). [Update: on 5/19/16, Wefunder has 18 Title III offerings.]
  • StartEngine (www.startengine.com). StartEngine launched five Title III offerings today (health tech, music, craft beverage, social networking for gamers). [Update: on 5/18/16, SeedInvest has six Title III offerings.]
  • NextSeed (www.nextseed.com). One Texas-based real estate offering is listed today on NextSeed.
  • SeedInvest (www.seedinvest.com). SeedInvest posted two Title III offerings (business services, consumer product).

Wefunder, NextSeed, and SeedInvest prominently display the minimum investment amount for each offering — you don’t have to register on the site to see it, as you apparently do on StartEngine. In fact, nine of the eleven offerings on Wefunder and NextSeed have minimums of $100. SeedInvest minimums were $500 and $2,000.

Inexperienced angel investors should read the 7-Step Crowdfunding Investment Plan before committing money to Title III deals.

In the next few weeks, more funding portals will launch with Title III offerings, and I’ll post updates about them. Don’t hesitate to contact me if you have any questions about equity crowdfunding. I do not intend to offer advice or opinions about which offerings to invest in — I aim to provide educational content only. Investments in private securities are risky and illiquid, so please read the offering documents and disclosures thoroughly.

Dave Freedman is coauthor of Equity Crowdfunding for Investors, published by Wiley & Sons in 2015.

Categories: Portals & Platforms

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