Are you looking to invest in a startup
There are many ways for people to invest their savings each with their own degree of risk and reward. While rewards are usually gauged in monetary terms there is one other reward that few investments have – the reward of knowing you have helped a startup company get off the ground. It is no wonder that the term used most often in startup investing is ‘Angel’ because that is what these investors feel like to the people needing some seed money to get started.
It is not just the feel good reward that startup investors are reaching for – it is also the potential monetary reward of being in at the ground level of something that could really go gangbusters. Imagine having been a startup investor in Microsoft or Google! Obviously very few startups reach the notoriety of companies such as this but that doesn’t stop investors from taking the chance. The following ten websites are for companies that work to put startups available for investors to finance. They are just ten of those most commonly followed as shown by their global alexa.com rating scores given. Work with one or all of them – as an investor the choice is entirely up to you.
1, StartUps.Co: http://www.startups.co/
Global Alexa Rating: 88,998
The website is set up to attract startups that are looking for angel investors and venture capital. To date the company has over 20,000 active investors that have already helped over 300,000 startups get the funding they needed. The site showcases their success stories and introduces a couple of their featured investors. Because this site is so user-friendly for those seeking funding it is able to provide countless opportunities for the startup investor.
2, Seedrs: http://www.seedrs.com/
Global Alexa Rating: 145,561
Startup investors can join this site for free and begin browsing the startups available. There is a thorough FAQ section for both investors and entrepreneurs that covers all the facts about startup investments and Seedrs. The fee structure is simple and the site is easy to use. This is a UK company and only UK residents over the age of 18 can become members. This is not an angel network.
3, Upstart: https://www.upstart.com/
Global Alexa Rating: 149,131
This organization is a good place to go when you want to do smaller investment amounts as offers can be made in increments of $100. The interesting part of this company is that investors receive a portion of income over a 10 year period rather than the typical equity share. In some cases the time period can be extended up to 15 years but it is capped at 5 times the initial amount raised. The company collects monthly payments for the investors from the startup and reconciles the amounts received with the startup’s annual tax return. Backers are able to be more involved with startups with this company, including being able to provide advice and help in other ways as well.
4, WeFunder: https://wefunder.com/
Global Alexa Rating: 285,032
Another place where investors can get started with smaller amounts – as little as $1,000 is needed to get started. An investor does need to sign up on the site (no charge involved) in order to see all the startups available. You can, however, see some endeavors that have already been funded. The advantage of this site is that there is more privacy than most other sites. There are some blog articles that can be read to get more information about how the company works and the current laws and news that pertains to this type of funding. This is not an angel network.
5, MicroVentures: http://www.microventures.com/
Global Alexa Rating: 292,668
This company is involved in putting angel investors and startups together. The first step is completing an investor suitability questionnaire. Once it is reviewed and confirmed, as an accredited investor you can begin evaluating the startups offered. They walk you through the investment process and hold your investment in escrow until the deal is closed. If for some reason it does not close, your investment is returned to you. You can get an idea of the types of startups they deal with by going to their portfolio section.
6, ACA – Angel Capital Association: http://www.angelcapitalassociation.org/
Global Alexa Rating: 428,681
This company really gets into the world of angel networks quite thoroughly with blogs, news and even webinars. This is a top level professional organization. Use it to join an angel group or even to start your own angel group. The resources, presentations, statistics and data analysis on this site are top notch for those that want to fully understand how everything works. Whether you are new to accredited angel investing or have been doing it for years, this site will help you build a fantastic skill set.
7, AngelsDen: http://www.angelsden.com/
Global Alexa Rating: 454,693
Well organized site which gives you the opportunity to immediately go into the area for investors or to seek funding, making it easy to get to the part you want. The investor area thoroughly explains how they work with links to their monthly local SpeedFunding Events, online search, private viewings, angel clubs and Masterclasses section. There is a calendar of events, a blog section and testimonials. The Masterclasses feature is helpful both for the new investor and those that want to brush up on their knowledge.
8, Sharespost: https://welcome.sharespost.com/
Global Alexa Rating: 468,146
This company works on the premise that if a company is able to get funding in the early stages they can avoid going public too soon thus improving their chances for success. It gives investors the ability to invest in private company stock which they might not otherwise know about. One of the benefits of using this particular company is that you can buy or sell your shares as they work with enough investors to make that happen. This gives investors the liquidity factor they wouldn’t have with other startup funding companies.
9, MyMicroInvest: http://www.mymicroinvest.com/en
Global Alexa Rating: 604,369
This is a European company that works with both small investors and larger ones. Both can fund the same projects although at different investment amounts. The company writes a prospectus for each fundraising so you can see easily what is involved with each investment. Being able to access venture capital quality investment opportunities with even small amounts is a benefit to small investors. Check out the ‘about’ tab for a graphical representation of how the process works.
10, Startup Valley: http://www.startupvalley.com/
Global Alexa Rating: 657,153
This company is involved only in technology startups and businesses that need funding. Because there are some SEC regulations not yet finalized regarding equity crowdfunding this website is in the beta/pre-launch stage. It makes the list because there is quite a bit of information already available. Read the blogs and check out the links in the more info section. They may not be ready to run yet but worth keeping an eye on as they will likely be the first to run once the regulations are in place.
Investing in a startup company can be fun and rewarding. There is a certain degree of risk involved just as there is with most investments, so it is wise to fully understand the process before adding this type of investment to your portfolio. These sites have a lot of information about the process and each works a little differently. You can proceed with one company or choose more than one to diversify your exposure. As with all investments, be sure to do your due diligence.
