With so many investing platforms today,it’s so difficult to choose the right one especially when you’re a newbie in investing. Also,most of them require a large sum of money to begin investing. Fortunately,there are still other platforms that can let you invest for as little as $500. A great example of this is SeedInvest.
Whether you might have heard of it or it’s something new to your ears,it is essential to learn more about platforms that can help start investing at a low cost. To help you know more about this incredible platform,we’ll provide you with some essential details of what SeedInvest is and how you can invest in it.
What is SeedInvest?
Let’s first know more about what SeedInvest is.
SeedInvest is a platform that offers equity crowdfunding by helping connect startups with investors online. It offers access to pre-vetted startup investment opportunities for individual investors. The platform was established in 2012 by founders Ryan Feit and James Han. SeedInvest was then launched in 2013 wherein it has risen to popularity till today.
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The platform focuses on building liquidity to draw or engage high-net-worth individuals, venture capital firms,and family offices. Its goal was to make it simple for individuals and companies to earn money online. SeedInvest is known to be advantageous to private companies and startups that are looking for fundings. It also allows startups to be invested by other users.
SeedInvest is the first equity crowdfunding platform to make startup investing to be more attainable and reachable to the majority of the people in the U.S. Currently,it has around 500,000 investors and has helped in funding various companies.
Comparing SeedInvest to Other Platforms
SeedInvest is also like other platforms,such as StartEngine and Republic,as it also offers startup investing to accredited and non-accredited investors. However,it differs when it comes to the cost of fees and account minimums.
For example,If you are using SeedInvest,you can invest in a startup for as low as $500 which is a great advantage when compared to other listings requiring at least $1000. Also,for each transaction,it cost around 2% or up to $300 per investment.
Meanwhile,StartEngine charges a 3.5% fee while its minimum cost around $100 to $1,000 depending on the startup. The most affordable among the three is Republic wherein it cost only $10 for its minimum and doesn’t charge any fees.
Ways to Invest Using SeedInvest
1. Auto-invest accounts
SeedInvest has an automated investing option that lifts you the burden of choosing investments and rebalancing your portfolio by creating a diversified portfolio of startup investments on your behalf.
To get started,you’ll need $1000 and a minimum of $200 for each investment. Also,you’ll need to pay a 2% processing fee every time the company makes an investment for you.
The SeedInvest Auto-Invest account has three features which include:
- Diversification: Allows users to have startup opportunities to various types of industries,such as cannabis tech,robotics,hardware,virtual reality,real estate,and e-commerce.
- Control: SeedInvest offers the freedom to choose your investments. It also lets you opt out of opportunities you no longer like,add or withdraw money,and restart anytime you want.
- Highly vetted companies: SeedInvest has a rigorous process for those Startups that apply for funding. As a result,it only accepts about 2% of more than 10,000 startup prospects that apply to it.
2. Live startups investing
As mentioned above,SeedInvest provides various startup investment opportunities to both accredited and non-accredited investors. Due to this,it aids to fund companies that haven`t gone public yet and also allows you to have the freedom to invest in what you want. However,some of these opportunities are only applicable to accredited investors.
For its user interface,SeedInvest provides you to easily review companies that you want by providing you with various information such as the amount of money it has raised,its minimum investment,the amount of time that is needed to invest,and he company`s valuation cap.
It also gives you a detailed list of information about each company. These includes team information,investor perks,risks,company highlights,fundraise highlights,and disclosures.