- Equity crowdfunding’s expansion yields dozens of sites where entrepreneurs can sell securities in their pre-seed or seed-stage companies to retail investors, sometimes for as little as $100 per share.
This article is part of the daily Karma newsletter. To get the whole newsletter delivered to your email free every morning, subscribe here.
When the 2012 JOBS Act opened up private equity investments to the “non-accredited” (read: non-rich), equity crowdfunding expanded almost overnight. Today, there are dozens of sites where entrepreneurs can sell securities in their pre-seed or seed-stage companies to retail investors, sometimes for as little as $100 per share — and many are building their businesses with impact at the center. With the long weekend ahead (and no newsletter on #SocEntFriday because of the federal holiday), it’s a great time to browse the next generation of B corporations and their diverse leaders.
Wefunder has hosted more than $140 million in equity investments; alums raised a collective $4 billion in follow-on rounds. Fundable lets founders raise equity or debt capital from investors or, for smaller-dollar targets, through a “rewards-based” raise similar to Kickstarter. Localstake, which offers four types of investment vehicles, launched a COVID-relief revenue-share program for the businesses on its platform. CircleUp uses machine learning to evaluate companies, which may be helpful in mitigating bias.
In Other News: ‘Warm Glow’ risk, electric scooters
Tech companies are the latest front in the tensions between India and China. How can electric scooters reinvent themselves for the After Times? The European Investment Bank identified multiple barriers to venture capital for the continent’s female entrepreneurs. The “warm glow” risk in impact investing can be mitigated. One social entrepreneur explains how investors can fix the prison-industrial complex. Investments in the creative economy just got a boost.
Hungry? Here’s how to forage and cook the plants in your neighborhood.