3 Reasons To Consider Equity Crowdfunding As Your Next Investment

September 16, 2020
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You have ownership

The economic yoyo of 2020 has disrupted people’s financial plans and plunged many of them into turmoil. Yet, a week after the (so far singular) stimulus checks were mailed, there was a 90% spike in stocks traded by people earning $35,000 to $75,000. Across the board, more Americans have been buying stock, and that likely includes plenty of novice investors eager to try their hand at the market. This frenzy of activity can lead people to make unwise investments without sufficient knowledge. 

Therefore, for many fresh investors, steering clear of Wall Street and eschewing the traditional markets in favor of equity crowdfunding can be  a wiser place to find their footing. Equity crowdfunding is Federally regulated and offers the average person an opportunity to invest when a company is still affordable and is an attractive, stable alternative from the volatile public markets. It’s a starting point for fresh investors to secure equity in startups, support small businesses, and build long-term, generational wealth.

You support Main Street

Successful crowdfunding companies create and support on average a total of 54 direct and indirect jobs, and since 2016, has already pumped nearly $1B into local economies across the US. After being decimated by the pandemic and bypassed by Federal relief, the little guys and gals still need substantial support. Small businesses account for 99.7% of all employers in America and equity crowdfunding is a more agile route to funding than venture capital or government relief. Equity crowdfunding provides tangible support that Main Street needs now more than ever. Therefore, it’s inspiring that the equity crowdfunding ecosystem has been smashing records while VC has been languishing.

You invest in local entrepreneurs

Local communities are teeming with entrepreneurs and clever ideas, it might make sense to invest in them. Investing in your favorite coffee shop or restaurant, for example, keeps money in the community, and supports the creation of local opportunities. Ordering a latte from a locally owned shop buys ballet and soccer lessons for the owner’s kids, instead of more fuel for the Starbucks corporate jet. Choosing to invest at the local level benefits the entire community and builds wealth for both the entrepreneurs and the investors. 

Instead of throwing money into worthless Hertz stocks, investors should consider the calmer, more placid waters of equity crowdfunding. It benefits local communities, while creating local investors and the ripple effects are profound.

If you’re curious to learn more about investing in and via equity crowdfunding, check out TruCrowd’s online investment portal

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