LocalStake is an Indianapolis-based equity funding platform with the main focus on local businesses.

Investments are made into local businesses and projects, to make local communities better places to operate.

On LocalStake, local investors can pool their money together in small increments to make an even bigger impact.

You may think of how Localstake will be able to stand in this competitive industry with key players like StartEngine and Wefunder. But the only factor which gives a competitive advantage to LocalStake compared to big giants is “transparency”.

Therefore we prepared a detailed review of LocalStake includes types of investment does LocalStake offers, how you can invest, why should you invest, how much returns should you expect, and all other relevant stuff regarding LocalStake.



Investment Type

Venture, Startups


Fintech, Cyber, AI, MedTech, and BidData

Minimum Investment



Open to all Investors

Investor Fees


Due Diligence Process


Securities Offered

●      Preferred Equity

●      Revenue share loans

●      Convertible debt

●      Traditional debt

Investor Resources

Company documents, blogs, One to one interaction with employees


●      Support to local businesses

●      No upfront fees

●      Low amount of investment required (as low as $100)

●      Some opportunities are only open for accelerated investors

●      Individual businesses have an opportunity to offer non-monetary perks


●      Generally, small businesses are extremely risky

●      Localstake does not disclose its track record in the recent past

●      Localstake does not offer securities against default of business

●      Limited investment opportunities

●      No secondary markets

Types of Investments LocalStake offers

LocalStake is one of the companies in the market which offers services that facilitates both investors and entrepreneurs.

Localstake mainly focuses on small businesses and gives a platform to get the money they require to grow and expand their business.

They mainly offer four types of investments –

What do you get when investing with LocalStake?

If you are an investor and want to invest in a non-listed startup you can invest through four investment options mentioned above in the small companies and startups and if the startup grows or the company went for a public listing you will get the difference of profits made on investments.

Small businesses and startups are considered extremely risky investments you can invest to diversify your portfolio. If the company grows you can get extraordinary returns on your investment because small companies have the most to grow.

How does the company make money?

Localstake act as an intermediary between investors and entrepreneurs –

Potential Returns and Cashflow

Return Potential returns on your investment are based on the company you invest in and the type of securities you invest in.

In the case of Revenue share loans, it will be based on the time taken by the company to generate required sales.

The most important factor is how the company performs in long run. If the company performs well and increases its revenue and ability to generate healthy profits you can get outstanding returns on your investments.

If liquidity is your main concern then Localstake is not the option you should go with as it generally takes 2 to 3 years to convert your investments in liquid cash.

You may consider stocks, debentures, and other investment instruments for higher liquidity.

The Breadth of offerings on LocalStake

The Deal flow of the company

LocakStake carefully selected local businesses who need capital between $50K to $500K ($250K on an average) post their campaign on the site; potential investors review these campaigns; they fund them if they feel the business will make an impact in local community life.

On average, local businesses borrow over $250K through Localstake’s platform each year -about $6M total since inception- which is then re-invested back into various local communities across Canada.

Regulatory Framework

As a registered broker-dealer Localstake is liable to have a background check on the businesses and their management which they want to list on their platform under Regulation CF.

How much I can Invest?

It depends upon the type of status you have.

Accelerated investor

If you are an accelerated investor then there is no limit to investing through LocalStake.

Non-accelerated Investor

If under Regulation crowdfunding you are considered as a non-accelerated investor you can invest up to $2,200 if your net worth or income does not stand more than $1,07,000.

If your income or net worth comes out to be more than $1,07,000 you will be able to invest 10% of the respective one (whichever is greater).


LocalStake is a crowdfunding platform with higher transparency than its competitors and helps to get funds to the startups from the interested investors.

But as a long term investor, I feel hesitant to invest in these startups with LocalStake –

In addition to that the funds you invest will not be FDIC or SIPC insured.

At last, I just want to mention investing in startups is a high-risk and low liquidity game. A beginner should not prefer it as an initial investment.

An experienced investor with a great portfolio can diversify their portfolio by investing in startups to earn huge returns.