Overview
Equity net is a crowdfunding platform that offers early-stage companies and ambitious entrepreneurs the possibility to raise funds through debt or equity financing. It was created in 2005, and since then, it has become popular among accredited inventors and start-up companies, and it should be. As for the investment deals and transactions, we’re afraid that the company doesn’t support that. Because Equity net is not a registered broker and that means all deals must be outside the platform.
So what does the platform offer?
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Service |
EquityNet |
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Founded |
2005 |
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Investment type |
Venture |
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Sectors |
Marketing, Energy, Healthcare, Retail, Media, Transportation, Communication, Software, Entertainment, and Consumer packaged goods |
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Minimum investment |
Minimum $5000 |
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Audience |
Only accredited investors |
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Investors fees |
No fees $0 |
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Due diligence process |
No record for diligence process. Listed companies are offered under Reg D or Reg A+ |
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Securities offered |
Equity, convertible debt, Financing debt, Grant, Royalty funding types |
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Investors resources |
Company documents, blogs and research section |
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Pros |
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Cons |
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Types of investment that EquityNet offers
EquityNet founders and management teams aim to accommodate and list a wide range of different industries. Not only start-up companies, even advanced stage companies. In other words, the platform is designed to list all private industries.
EquityNet platform offers inventors from all over the world the chance to get into the entrepreneur world. It’s free to sign up as an investor, once you sign up you can browse the platform and pick your shares.
The platform focused more on the data gathering process. Investors can have access to the targeted company data including its profile, revenue, performance, and more.
Here are some of the data the Equity Net gather and provide
- Company location
- Company revenue ( prior and current year revenue) and future revenue assumptions.
- Company profile including founders and management team
- The company age, employees
Investing in early-stage companies and businesses is considered a high-risk investment. But Equity Net knows how to reduce that risk.
Equity Net’s goal is to build a truss bridge between business wonders and inventors to ensure growth and prosperity for both. A win-win situation, so here are some of the key features that the platform offers to guarantee that
Business plan analysis The platform is designed to help seed-stage companies with rising funds either with debt or equity financing. To ensure a high rate of success, it offers the listed company a full business plan analysis.
EquityNet management team will track and analyze the company’s performance, including its performance, revenue, and its plan. The gathered data will help the platform to calculator how much funds the company could rise
Business reports: This feature is built for investors. They can have access to professional reports about any company listed on the platform. Prior year revenue, current year, and even future revenue production.
Investing in a startup carries the risk of losing money. Yet, with the professional reports services, the odds are on your side.
Start-up risk calculator: Based on the gathered data, business owners can calculate the exact amount of how much their business is worth.
General solicitations: It’s an effective communication method that EquityNet uses to help companies raise more funds. It includes using social platforms like LinkedIn and Face book to find and spread the news to investors that the company is raising money.
What do you get when you invest with EquityNet?
Even though it is considered a fundraising network, EquityNet isn’t registered as a broker-dealer. Do you know what does that mean?
It means that all deals must be directly between the investor and the company outside the platform. Investors can sign up for free on the platform and start investing in venture companies that they believe could be beneficial for them. Equity Net supports all types of industries and investors and that comes with a different source of income for both.
Investors should expect to receive their profits as convertible debt, financing debt, equity, and grant.
Furthermore, investors can have access to a valuable database about the companies they are interested in. Full reports, business analysis, and results will be at your disposal. EquityNet aims to list only promising venture companies when both founders and investors can profit.
How does EquityNet make money?
As unregistered broker companies and investors must directly contact and conduct their deals outside the platform. Because of that EquityNet won’t charge any transaction fees between investors and business holders.
Plus, the platform does not charge any fees from the subscribed investors, the platform is totally free to use and browse. That leaves us with one assumption, the company source of income would be entrepreneurs and business owners.
It’s suitable to say that EquityNet as an organization or company is considered a non-profitable crowdfunding platform. Still, it asks for monthly subscription fees, which are estimated to be $139. The platform also offers different services to businesses, such as monitoring, analyzing business plans in and outside the US.
Potential cash and return
EquityNet’s management team made it clear that the platform does not conduct or accept any deals. Because it’s not a registered dealer or broker.
The platform focuses on two essential parts, fundraising, and investors. To accomplish that, EquityNet helps to connect inventors with the companies they are interested to invest in.
Inventors can sign up for free and browse the platform to pick up investment opportunities that are expected to generate future returns. That’s the main objective of EquityNet.
As for how much would an investor make or what are the potential returns, there isn’t a straight answer. Investing with newborn companies is considered risky. Because through time, the vast majority of early-stage companies fail or run-out of business.
For investors, we recommend a diversified and solid investment portfolio, the platform lists a wide range of industries. The bottom line that is how your portfolio should be.
The breadth of offerings on EquityNet
The thing that is worth talking about is the wide selection of private companies that EquityNet lists on its platform. Its founders support all private businesses at every stage of development. The company website has registered and funded thousands of entrepreneurs, business owners, private company seed-stage, and late stage.
Through the platform, inventors can get free access to private companies’ portfolios of all industries. This includes tech, healthcare, media, services, entertainment, and more.
It’s free for any company to sign on the platform, still, all companies must run under Reg D and Reg A+
However, EquityNet only supports and lists companies that are not publicly traded. Only private companies and only accredited investors can invest. Companies can raise funds either equity debt or financing debt, and all transactions happen offline.
Regulatory framework and due diligence process
A Network for everyone, that’s what EquityNet, stands for. The company focuses more on finding matching opportunities between inventors and listed companies. Compared to their competition, such as Start Engine or Republic, EquityNet does not conduct any due diligence process. Because it considers itself as a matchmaking platform where inventors can find companies that serve their financial goals.
All listed companies on the platform must operate under regulation Reg D and Reg A+, its part of their listing process.
Instead of not applying due diligence processes, EquityNet provided business analysis services. This service helps inventors to get detailed information about particular companies they are interested in. The information includes its founding year, business plan, revenue, and future performance expectation.
The investors must ask the platform for company documents before providing further information.
Conclusion
EquityNet is a matchmaking platform, where startups can raise money either as an equity debt or financing debt. EquityNet does not take any fees from investors, either listed companies. However, it takes monthly subscription fees, plus services fees such as a business analysis report.
The platform does not offer any facilities or transactions, all investments are conducted directly offline. Nevertheless, EquityNet over the past 16 years has helped thousands of entrepreneurs to raise funds and grow their business, rising over $600 million in equity debt.