SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Technology StocksEquity Crowdfunding


Previous 10 
From: Thehammer2/1/2021 10:08:38 AM
   of 44
 
I have been looking at small wind turbines via Flower Turbines as my next equity crowdfunding investment.

Flower Turbines | StartEngine

They are in their third round of capital raises via StartEngine. This one is a Reg A which has higher reporting requirements as well higher dollar maximums for amount raised. I have been investing relatively small dollar amounts for 3 years. My record is spotty as best. However, being startups, you will definitely get some failures. I have been investing in Biotech for over 30 years as well and you get a few big winners, some moderate winners and fair share of losses. I suspect the same will be true in the equity crowdfunding space.

These are investments for the long haul and illiquid. They are not for someone with a trading perspective. Probably 5 years minimum.

Flower turbines seems to be more for residential and small company energy enhancements in areas that are windy. Their design is harmless ( so they claim) to wildlife and the turbines turn at lower wind speeds than traditional turbines. So far sales are low and mainly in Europe. This fund raising effort is their third and is supposed to ramp up sales and marketing efforts.

Also some engineering efforts underway to address problems with mounting on non flat roofs.

Share RecommendKeepReplyMark as Last Read


From: Thehammer2/9/2021 2:03:38 PM
   of 44
 
WeFunder, the largest Equity Crowdfunding platform with 41% of the market (they claim) is raising equity. Minimum investment is 3K
Here is their "deck":

Wefunder1.png (d2qbf73089ujv4.cloudfront.net)

Share RecommendKeepReplyMark as Last Read


From: Thehammer3/2/2021 7:59:20 AM
   of 44
 
Nascar Partners With Comcast NBCUniversal SportsTech Accelerator To Streamline Logistics (forbes.com)

XIQ is one of the first companies that I put a little (and I do mean little) $$ into. With some companies, especially the smaller ones, you never hear anything after you invest. Karlos Walkes (CEO) has been exceptional in messaging developments and strategy. He responds to questions rapidly when I ask or comment in a very timely manner.

Share RecommendKeepReplyMark as Last Read


From: Thehammer3/15/2021 10:42:12 PM
2 Recommendations   of 44
 
Today the new SEC rules went into effect for equity crowdfunding. Posted on them before, but there are several important points:

1) Reg CF limits were raised from 1.07 million annually to 5 million

2) Reg A funding was raised from $50 million to 75 million (more stringent reporting and doc prep)

3) Ability to "test the waters" for corps ascertaining interest while at the same time prepping documents for a REG CF or A campaign.

4) Investment limits raised for non accredited investors and accredited investors now have no limits on amount they can invest.

I watched a kickoff meeting with Mr. Wonderful and the CEO of StartEngine Howards Marks today. I don't see it on line yet. Mr. Wonderful expounded on his reasons why the limit change from 1.07 million to 5 million was important to startups raising capital. My guess is that it will attract more potential companies.

SE kicked off a "test the waters" campaign for further funding.

Looks like several companies are coming back for funding or raising limits on existing campaigns.

Shark Wheel (on Wefunder) kicked off another campaign with a lower cap for the first $250K investing. I committed a few more bucks for my third investment into them. I have been intrigued by them since I first saw them on Shark tank. They have moved into quite a few additional markets from their initial skateboard wheels and have major deals with some caster and luggage companies. Now they are moving into farm equipment (wheels).

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Thehammer who wrote (38)3/15/2021 10:59:21 PM
From: Glenn Petersen
   of 44
 
You beat me to the punch by 15 minutes.

The SEC’s new rules are already changing how startups raise money

When you can crowdfund up to $5 million in equity, who needs VCs?

David Pierce
Protocol
March 15, 2021

Sahil Lavingia, the CEO of commerce platform Gumroad, is raising $5 million in new funding. But he's not traversing Sand Hill Road looking for a few big checks. Instead, he wants that $5 million to come in a few hundred dollars at a time, from investors he's never met. Maybe even investors who no one would call "investors."

The backstory: Last fall, the SEC passed a new set of rules for "exempt offerings," which allow startups to raise funds by selling securities. The SEC acknowledged that its exempt offering rules had become "overly complex," and tried to make them simpler to understand.

The new rules increase the amount of money a startup can raise through Regulation Crowdfunding, which works like ordinary Kickstarter-style crowdfunding but involves selling equity instead of products and thus comes with many more rules attached. (Though not nearly as many as your average public company.) Reg CF, as it's known, used to only allow a company to sell $1.07 million in securities every year. Starting Monday, that number jumped to $5 million a year.The rules also allow startups to "test the waters," which means they can talk much more publicly about raising money without actually raising money.
Gumroad feels an affinity to the crowdfunding approach: Given its product gives creators tools to sell stuff more easily, doing the same with Gumroad itself seemed only right. So after raising money last year from accredited investors, Lavingia is offering the same terms to the general public. "We are in the creator economy, and that's how we grow," he said. "Our creators advocate for us. And this is kind of the perfect next step: Let's get you on the cap table."

The campaign is happening on Republic, the platform hoping to bring retail investors to private companies in the way Robinhood has with public ones.Anyone who qualifies — which is easier than becoming an accredited investor, but still not open to anyone — can invest between $100 and $10,000 in Gumroad. "There's a chance that this investment goes to zero," Lavingia said. But if it does, so will all the brand-name investors like Naval Ravikant.What does your investment get you? A piece of the company and … not much else. Lavingia said he might do a monthly call for all investors, but has no plans to bring thousands of new people into the company's decision-making process.
These rule changes are probably going to make VCs crazy, since now there are easy ways to loop them out of the super-early fundraising that often brings the biggest windfalls. Lavingia, who has a history of trying new things in this space, seems pretty OK with that: "I think if VCs were really upset about rolling funds, they're really upset about just trying to skip the VCs at all if possible."

He's also hoping that this model — start with a lead investor who negotiates and does due diligence, then offer the same terms to the general public – becomes a go-to move for startups everywhere.

Will this change the way Gumroad is run? After all, it's one thing to take money from a bunch of rich investors, and quite another to have thousands of regular people bet their savings on you. Lavingia said … probably?

"I've been running Gumroad very, some would say, haphazardly over the years," he said. "I told the team I probably will be more aggressive. We may need a few deadlines."

  • Share RecommendKeepReplyMark as Last ReadRead Replies (1)


    To: Glenn Petersen who wrote (39)3/15/2021 11:08:35 PM
    From: Thehammer
    2 Recommendations   of 44
     
    I have been investing relatively small sums for a little over 3 years. I have run into this more than once:

    "I've been running Gumroad very, some would say, haphazardly over the years," he said. "I told the team I probably will be more aggressive. We may need a few deadlines."


    A few have given up the ghost. Some of the companies don't seem to grasp what it means to have shareholders. Some of the others though appear to be prospering and do a good job of keeping their shareholders in the loop.

    It is not for everyone - especially novice investors as it is not liquid although both Start Engine and WeFunder , the two largest have limited trading platforms. Some of the questions posed make me cringe.

    Share RecommendKeepReplyMark as Last Read


    From: Thehammer3/16/2021 9:24:53 AM
       of 44
     
    What Is Equity Crowdfunding? Kevin O'Leary Explai - TheStreet

    A decent video with Kevin O'Leary that highlights a few companies including StartEngine and benefits of new regulations.

    Share RecommendKeepReplyMark as Last Read


    From: Thehammer3/20/2021 1:07:36 PM
    1 Recommendation   of 44
     
    Top 10 Equity Crowdfunding Sites - 2020 | Crowdwise

    a few snips:

    All else being equal, startup investors should be investing on platforms that best align with the types of deals and investment opportunities that they are looking for. Areas that every investor should consider to determine what is the best funding portal includes:

    Types of companies and dealsQuality of dealsQuantity of dealsEarly-stage (Reg CF) vs. Later-stage (Reg A+) startupsInvestor feesDue diligence and deal curation done by the platformTypes of securities offered (e.g. Common Stock vs. SAFEs)Secondary Market options (for increased liquidity)Payment forms accepted (credit card vs. ACH vs. wire)


    Share RecommendKeepReplyMark as Last Read


    From: Thehammer3/20/2021 1:09:57 PM
    1 Recommendation   of 44
     
    Leading Equity Crowdfunding Platforms for 2021 - CrowdFunding.Guide

    Share RecommendKeepReplyMark as Last Read


    From: Thehammer3/20/2021 1:11:54 PM
       of 44
     
    Venture Capital vs. Equity Crowdfunding: Which Is Better For Your Business? - TWICE

    Share RecommendKeepReplyMark as Last Read
    Previous 10