Equity Crowdfunding for Investors
When Mayank Agrawal, CEO of ZenSpace, started looking for additional funding for his innovative on-demand workspace business, he looked at his options and decided equity crowdfunding was the way to go.
Mayank Gets His Zen On Through SeedInvest
When Mayank Agrawal, CEO of ZenSpace, started looking for additional funding for his innovative on-demand workspace business, he looked at his options and decided equity crowdfunding was the way to go. The benefits of this type of fundraising are obvious: it provides a highly visible platform on which to share a vision, it grants the ability to reach all types of investors, and it creates buzz that helps connect to potential customers.
Mayank researched the various platforms available for equity crowdfunding. When he hit upon SeedInvest, he liked what he saw. SeedInvest was founded by professional investors Ryan Feit and James Han in 2012. Both founders had financed companies across technology, consumer, and other major market sectors. Leveraging their experience, they built an online platform that made startup investing and fundraising simple and accessible to everyone.
The qualities that attracted Mayank to SeedInvest were threefold. First, he was impressed by the rigorous due diligence they perform. They put companies through an intense vetting process and accept only one out a hundred startups. Mayank knew if ZenSpace could pass their vetting, they were truly on the path to success.
Second, SeedInvest had the highest “average raised” when compared to other platforms, meaning companies using SeedInvest raised more money overall.
Third, SeedInvest is only paid when a company using its platform reaches its funding goal. This gives them incentive to help their clients succeed.
Getting Started: For Investors
So what if you’re not starting a business yourself, but you’d like to invest in a startup like ZenSpace through equity crowdfunding? Whether you’re an accredited investor or not, you’re eligible to get involved.
Before getting started, think about the kind of projects you want to help fund. If you’re not an experienced investor, stick to businesses you know something about. This will allow you to better evaluate projects and mitigate your risks.
Next, find a platform that hosts projects you find interesting. SeedInvest is ideal for the serious investor, since they fully vet each project and are incredibly selective about which ones they choose to host. Sign up on the platform of your choice, and verify whether you are an accredited or non-accredited investor. Equity crowdfunding sites need this information, since non-accredited investors are restricted by law in how much they can invest.
Some platforms, like SeedInvest, ask you about your interests so that they can customize your experience. They’ll be able to use the information you provide to recommend investment opportunities.
After sign up, it’s a simple matter of browsing the site to find companies that interest you. You’ll be able to view a company’s profile to learn more about their business.
Make sure you do your homework before committing to any funding. View your prospective company’s investor deck, term sheet, and any financial information they can provide. Connect and communicate with the company founders, and get to know the market in which the they are positioned. You can also talk to your colleagues about the investment and get their opinions.
After all this, if you’re satisfied it’s the right move, take the plunge and invest. Crowdfunding sites make it easy. On SeedInvest, for example, you simply click the “Invest” button on a startup’s profile page and follow the instructions. Your investment amount will be transferred from your bank account (or alternately, you can wire the funds) and placed in an escrow account until fundraising is closed.
Projects like ZenSpace provide great investment opportunities for new and experienced investors. To learn more about ZenSpace and the services they provide, visit their website now. For help navigating the ins and outs of equity crowdfunding, visit the SeedInvest academy.
To view the ZenSpace SeedInvest opportunity, click here.
ZenSpace is offering securities under Rule 506(c) of Regulation D through SI Securities, LLC ("SI Securities"). Additional information may be obtained from: https://www.seedinvest.com/zenspace/seed/