July 24, 2016
This week’s goal was to find a company to invest in. The new law passed recently allows non-accredited investors to invest in startups through this thing called equity-based crowdfunding. There has been a couple new marketplaces that opened and a couple of new channels for this to go through because of a handful of companies that signed up to do this right away, the biggest being a music startup called 8tracks.They opened up their latest round to this equity-based formula. I also heard about a theater in San Francisco that has been using this new platform with a lot of success.
Investing in companies at this level this is something that I have always wanted to do. I would love to have some level of investment in the company. I wouldn’t want to put a lot of money into at the start. I’d like to just dip my toes in. I think that this is going to open up some really interesting possibilities in the future for people raising money and for a different level of kind of connection to the product.
I think opening up this level of investment, people think you’re going to have this kind of kinship with the product. You have early adopters that already had this bond to the products. They are the naturally the next best well to tap. They are already brand ambassadors.
8tracks is a good example because they have a solid user base. I’m willing to drop a small amount, $500-$2,000 on a product that I believe in and want to support. We do it for things on kickstarter at least this gives you more in the game.
There’s definitely products that I have used in the past that I would love to have invested in. Plus, in a way it ties you into the success about the product or services.
If you were a customer and an investor, wouldn’t you tell everyone about it and try to recruit more people.
If you are looking for some companies that are opened up to this type of funding, you can find them at [https://www.seedinvest.com/] and [https://wefunder.com/].
Written by John Siwicki who lives and works building interesting things. You should follow him on Twitter