What does SeedInvest do?
SeedInvest helps connect startups with potential investors. The platform provides a space for companies to share their business plans and goals with the public. Investors can browse through different startup profiles and choose which ones they want to invest in. SeedInvest also offers an Auto Invest feature, which allows investors to automatically invest in a selection of startups that meet their criteria.
Crowdfunding Regulation Types
There are two types of crowdfunding: equity-based and reward-based. Equity-based crowdfunding is when investors receive a share of the company in return for their investment. Reward-based crowdfunding is when investors receive rewards from the company, such as products or services, in return for their investment.
SeedInvest vs Competitor Platforms
SeedInvest is one of the leading platforms in the industry. The platform has a high success rate and has helped fund over 200 companies. SeedInvest is also open to accredited and non-accredited investors alike.
SeedInvest is a safe and secure platform. The platform is compliant with all SEC regulations. All investments made on SeedInvest are also covered by the Securities Investor Protection Corporation (SIPC).
SeedInvest has a few alternatives including Netcapital. Netcapital features lots of AI investment opportunities. This includes one of the most funded startups on Netcapital: GenesisAI. GenesisAI is building an AI API hub that allows developers to discover, test, and integrate AI APIs. So far, GenesisAI raised around $5M. You can invest in GenesisAI here on Netcapital.
Is It Worth It?
Yes, SeedInvest is worth it (no return guarantees of course). The platform has a high success rate and has helped fund over 200 companies. SeedInvest is also open to accredited and non-accredited investors alike.
SeedInvest vs competitor platforms
SeedInvest is one of the leading platforms in the industry. The platform has a high success rate and has helped fund over 200 companies. SeedInvest is also open to accredited and non-accredited investors alike.
Receiving updates from companies you invested on SeedInvest:
A good investor update will include information about the company’s progress, industry developments, business challenges and ways you (the investor) can help. Many companies take it upon themselves to update their investors directly, but SeedInvest also offers optional shareholder reporting services to its portfolio companies. If anything exciting or important happens with the company you've invested in, don't worry, they will notify you via email as soon as possible. You can also see updates by checking the Portfolio page on your investor account- which is also where you manage your investments and track your progress.
Exit opportunities
Only invest what you're willing to lose entirely. Once your investment is closed, holding the investments for an average of 5-7+ years should be anticipated before a potential liquidity event.
Liquidation events come in many forms but most typically include IPOs, acquisitions, mergers, and/or bankruptcy. In such instances, common stock, cash, or shares of the new entity might be received respectively. If there's a public offering (i.e., IPO) involved then your shares would likely convert into common stock.
Though investing in startups offers fantastic opportunities, it also comes with dangers startup hunters should be aware of. For the most part, your gains will be heavily focused on a 1 or 2 companies. And there's no assurance that companies will experience a liquidation event. In reality, it's more probable that these businesses fail or don't provide much ROI for those who put money into them. It's essential to have a diversified portfolio of 10+ startups because it increases the chances that you will have at least one "winner" in your portfolio. This approach mitigates some of the inherent risks involved in investing.
Due Diligence at SeedInvest
At SeedInvest, they offer a multitude of startups for potential investors to select from. But that's not all - each and every one of these companies has been carefully examined and is now required to provide evidence justifying their investment. This extra layer of security is made possible by Seedinvest's team, who also sees to it that the businesses on our platform have correctly filed as corporations or LLCs.
Once the structure and ownership terms of a startup are established, SeedInvest reviews its legal documents and checks for risks. From there, the data Seedinvest gather is reviewed by an investment committee, which offers the final say in whether the company can be listed on the SeedInvest platform.
Although their due diligence process cannot replace that of the potential investor, it can supplement it.
SeedInvest's primary focus is on startups and founders that have a higher likelihood of being successful. SeedInvest gives potential investors access to startup companies that have been evaluated based on numerous factors such as forecasted growth, existing intellectual property, experience in the industry and more.
By only featuring the cream of the crop, less than two percent of businesses that apply to SeedInvest, SeedInvest creates a win-win-win outcome for everyone: SeedInvest, investors, and founders.
Seedinvest's ultra-high selectivity is one of the ways they provide value to their investor user base of more than 600,000. They know that the companies listed on Seedinvest's platform have been carefully scrutinized. For founders, the rigorous vetting process led by Seedinvest's Venture Team and Investment Committee is a trial where their business and its potential for growth are put through a strenuous stress test. While making it through this process does not guarantee success, both investors and founders can be confident in knowing that we only list high-quality companies on the platform.
The Industries and Sectors That Interest SeedInvest the Most
Although it was once believed that only consumer companies could benefit from equity crowdfunding, the space has grown to include every sector, from HealthTech to Robotics, Blockchain to Sports Betting.
SeedInvest is not limited to any specific industry or geography. They believe that businesses that are solving real problems are more important than anything else. For example, FinTech companies in emerging markets that are revolutionizing global payments.
With the outbreak of COVID-19, health is now a top priority for people worldwide. This shift has brought many new opportunities for HealthTech companies that are working on innovative solutions. One of the areas SeedInvest is interested in is healthcare, specifically solutions that are helping humanity to fight against COVID.
Conclusion:
SeedInvest is a safe, secure, and compliant platform. The platform has a high success rate and has helped fund over 200 companies. SeedInvest is also open to accredited and non-accredited investors alike. Is SeedInvest legit? Yes, our SeedInvest review concludes that it is legit!
Disclaimer: no financial advice given. Do your own research. Investing on Seedinvest has a high chance of resulting in complete loss of the investment.