Sometimes capital from credit cards, banks, friends and family are not the right fit for fast growing and start-up Main Street businesses. Thankfully, another option is crowdfunding. While most people think of Kickstarter and other donation-based platforms for raising capital, there are also investment-based crowdfunding options like Mainvest, which focuses on small business opportunities, or Small Change, which focuses on small-scale real estate opportunities. Both platforms, and others alike, connect investors with entrepreneurs all across the country, especially in harder to reach and undercapitalized areas.
For investment-based crowdfunding, investors are able to review potential projects and choose investments that spark a personal interest. Businesses benefit from these platforms by having a flexible, but somewhat predictable, and/or affordable option compared to credit cards or bank loans. In both cases, there is greater opportunity to build a strong connection between the investor and the business owner, creating relationships that might not have occurred otherwise. For Mainvest, investors must invest a minimum of $100, while Small Change asks for a minimum of $500. Other crowdfund investor platforms may ask as little as $50 to get started.
Tetotaller is retailer in Concord New Hampshire’s Main Street district that tapped into investment through Mainvest to build out a new expansion location during the pandemic.
“What I like about Mainvest is that the power is back in our hands. We could tell our story and connect with investors, rather than work with a commercial broker looking at just a credit score.”
– Emmett Soldati, Founder, Tetotaller
Image Credit (Top): StartUpNation
Image Credit (Bottom): Tetotaller