Benzinga readers often choose CrowdStreet or EquityMultiple as the top crowdfunding platforms. If you’re considering investing in crowdfunding but unsure of where to start, it can be overwhelming to choose the best platform for your investment goals. Crowdfunding allows multiple investors to pool their funds and participate in investment opportunities that were previously out of reach. It also provides startups and entrepreneurs with an alternative to venture capital or large banks for fundraising. However, not all crowdfunding platforms are equal, so it’s important to do your research before committing your funds.
To help you navigate the world of crowdfunding, Benzinga has compiled a list of the best platforms for investors. Whether you’re looking for high returns, low fees, or a specific type of project to support, there is a crowdfunding platform out there for you. Here are some of the best crowdfunding platforms for investors:
1. CrowdStreet: This equity crowdfunding platform focuses on real estate offerings and is best for accredited investors. It offers a user-friendly platform, diverse offerings in various markets, a solid history of delivering investor returns, great investor resources, and many offerings eligible for inclusion in self-directed IRAs. However, it is only open to accredited investors and has a high minimum investment requirement.
2. EquityMultiple: This alternative investment platform simplifies real estate investing for investors. It offers a range of investment options, including short-term and long-term growth, and allows investors to select specific real estate opportunities without purchasing properties directly. It offers fast returns, access to commercial real estate investments, excellent client support, and a pro-investor platform. However, it is also only open to accredited investors and has a higher minimum investment compared to other platforms.
3. Streitwise: This real estate crowdfunding platform is best for investors looking to build a smaller real estate portfolio. It offers offerings for both accredited and non-accredited investors, is open to international investors, pays quarterly dividends, and has low and transparent fees. However, it has a higher annual investment fee compared to other platforms and fewer offerings.
4. StartEngine: This equity crowdfunding platform is best for investors looking to invest in pre-IPO startups. It offers a diverse range of offerings in multiple sectors and has the potential for high upside. However, startup investing is highly speculative and high risk, and many offerings have long hold periods with limited or no secondary market.
5. RealtyMogul: This crowdfunding platform is best for non-accredited or smaller investors looking to participate in institutional quality real estate offerings. It offers impressive diversity of offerings, low buy-ins in relation to institutional quality assets, and is available to both accredited and non-accredited investors. However, investor fees can be on the high side, many appealing offerings have high buy-ins and are only available to accredited investors, and the platform lacks the track record of some competitors.
6. Mainvest: This investment platform allows investors to generate passive income while crowdfunding small to medium-sized local businesses. It is open to non-accredited investors, has low buy-ins, and allows individual retirement account contributions. However, the loans have a high risk profile, many small businesses are subject to local economic pressures that can affect investor returns, and there is no mobile app.
7. GoFundMe: While not an equity crowdfunding platform, GoFundMe is best for individuals who want to support small businesses or causes financially. It is open to everyone, has low minimum contributions, and is widely known. However, it is a charitable platform and not geared toward investor return.
When choosing a crowdfunding platform, consider factors such as user-friendliness, transparency, vetting processes, and client service. It’s important to align your investment goals, accreditation status, available funds, preferred sectors, and risk tolerance with the platform that best suits your needs. Crowdfunding offers dynamic and exciting opportunities for investors, and with the right platform, you can expand your portfolio and potentially achieve significant returns.
