If you had a time machine to the early days of Apple, Amazon, or Google, would you invest in them? Back then you either had to know someone in the company or you had to have a lot of money and the right contacts. Of course, that was before crowdfunding platforms like Frontfundr came along and let small companies meet small investors. Equity crowdfunding democratizes access to early investment rounds.
After all, the other option is Dragon’s Den on CBC, but only the Dragons get to invest and make potential returns. The bigger players do it with investment banks, and average investors get access with crowdsourcing.
FrontFundr facilitates investment rounds for private companies with growth plans and proven records. They have to be accepted on Frontfundr and to do that, they need accurate financial statements. There are a lot of potentially revolutionary businesses using Frontfundr to raise investment funds.
How does an investment round work?
An investment round is an offer from a company to a person or entity. The company offers shares, or equity, to people in exchange for money. The person or company becomes a shareholder. It works a lot like the stock market, except it is for companies that are not listed on the stock exchange.
Of course, that doesn’t mean that the company won’t eventually go public. Any investment is risky and start-up investing is among the riskiest investments one can make. But you don’t need to invest a lot, only what you are comfortable losing. However, it is one of the best ways to get into a company at the very beginning.
Looking at the campaigns on Frontfundr right now, you see a lot of innovative ideas. The companies are transparently showing you what they do, how much they want to raise, and the minimum investment you can make. The companies have footholds in finance, professional sports, and consumer goods like ice cream.
Invest in Hardbacon and open banking
Take Hardbacon, which owns SimpleRate. The Canadian personal finance company wants to raise $500,000 CAN and you can invest a minimum of $500 CAN. The company has been around since 2017 and has grown a lot, especially in the last year. Hardbacon serves Canadians in both English and French through its app and websites. The personal finance app has 38,000 users. The app connects all of the users financial accounts, including crypto, and uses financial engineering to help them set and stay on track to meet goals. It helps Canadians budget, plan, and invest. Its website has 232,000 unique visitors per month and is growing at a rate of 17% each month. It also has a lead generation revenue stream and at least 20 financial institutions as clients. The company needs money to continue to consolidate the open banking market in Canada. Sure, open banking is officially coming to Canada in 2023, but Hardbacon is already there.
Own a soccer club just like Reynolds and Beckham
Another company that has nothing to do with finance is Rovers Football Club. It has a valuation of $1.12 million CAN. The minimum investment is $265 CAN and the company is looking for $300,000 in total. David Beckham, Ryan Reynolds, and assorted billionaires own soccer clubs. Rovers Football Club wants to be the first Canadian supporter-owned club. Based in British Columbia, it wants to develop soccer talent on the international level. It has revenue streams and a facility in place, plus a well-developed staff. The Club plans to launch a League 1 BC team for its U23 men’s and women’s teams. The next Olympian might come out of Rovers Football Club, but they need investors to help.
Invest in ice cream and lick the competition
A final one is Betterwith Ice Cream. It is a new line of ice cream without sugar. They have a 27% year-over-year growth rate and are expanding into the Ontario market. You can invest a minimum of $250 CAN and they are looking to raise $250,000 CAN. They even have rewards for certain investment levels. If you invest $500, you get a coupon for 2 free pints of Betterwith Ice Cream. If you invest $5,000 you get the coupons and a swag bag. The company forecasts $rtisanal ice cream industry.