Overview:
Mainvest is a reliable platform for investment where brick and mortar businesses meet potential investors. They are redefining the whole process of small business financing.
The policies and terms and conditions of Mainvest are quite friendly both for investors and for business owners. You don’t need to worry even if you don’t have much capital for investment. Through Mainvest you can become an investor-only with $100 and generate lump sum net profit. Both debt and equity options of investment are available in Mainvest. From the business owner’s perspective, it brings a lot more convenience. You can keep in touch with them and let them know about your growth. You can repay them any amount at any time with just a few clicks. In this review, you’ll be able to know how you can invest in Mainvest. Which sectors they are covering. As an investor or an investment seeker what concerns you’ll face.
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Service | |
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Founded |
March 2018 |
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Investment type |
restaurants, cinemas, farms, and even cannabis facilities. |
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Sectors |
Médicine, Entertainment, Cannabis and Marijuana industry, Food, Brewery |
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Minimum investment |
$100 |
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Audience |
All Investors and businessmen |
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Investors fees |
No |
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Due diligence process |
Pre-diligence |
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Securities offered |
SSL (Secure Sockets Layer) |
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Investors resources |
Company documentation, blogs and research |
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Pros | · Constant support for your business · No fees · Low limit of minimum investment · Permission of offering non-monetary perks for individual businesses · 97% on board business are in a stable position. · Open for non-accredited investors |
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Cons | · Lending is risky for small business · A track record of just three years · Mainvest won’t be responsible if your business doesn’t go well. · No secondary market available for your investment. |
Types of investment services Mainvest provides:
Before we get on to the types of investment services offered by Mainvest let’s first take a look at some latest numbers of this organization. Here are those.
- 400+ investment opportunities
- More than $12M of investments done by potential investors
- More than 97% of board businesses are progressing with repayments
Investment types:
Debt security:
As an investor, you’ll get a return of your payment with interest within a specific period.
Revenue sharing:
The business will have to pay an exact 5% of its revenue for four years from the date of investment. As an investor decide the maximum amount which you can receive and the repayment due date of the original investment.
EaRN or Equity-alternative Revenue notes:
It’s a long-term offer as compared to revenue sharing and has more potential. The business will have to pay back a percentage of revenue until a certain amount and after that have to pay a relatively low percentage of revenue until defined maturity date.
Equity-based securities:
Just like a traditional stock in any company the investor will have a share both in the progress and downfall. The investor will also share any profit distribution.
Preferred equity:
This is almost the same as that of equity-based security. The only difference is that the investor will receive before stakeholders of regular equity securities. Apart from all these types convertible securities are also there. These start as one type and can be changed to another type.
Key features of Mainvest:
Unlike most investment firms Mainvest has equal opportunities for individuals. You will get a fair chance to invest in any opportunity displayed on Mainvest even if you’re not a venture. There was a time when early-stage business and startup investments were only reserved for multibillion-dollar fundings. Mainvest has broken that stigma by allowing anyone to acquire and be a part of small business investments.
Availability of complete data to analyze businesses:
Mainvest database has a complete set of data for each business. Both investors and businesses have access to their SEC filings, balance sheets, financial projections and income statements. Data analysis is the most significant thing while determining if any particular opportunity has sufficient potential or not. Is it worth investing or not. That’s something that not many investment platforms have.
Super easy to start:
There aren’t any barriers to entry in Mainvest. They welcome you with a warm heart. The whole procedure is easy and silky smooth. You need to sign up and login into your Mainvest account. Money will be transferred through the website and you will also receive your payments from there. A dashboard will be provided to you through which you can check your investments and every other activity as well.
What you will get if you invest in Mainvest?
At present Mainvest is offering only one type of debt security which is Revenue Sharing Note. Although it’s an unsecured loan the repaying in this is done based on revenue or the real-time performance of the business. Investors may be paid back in less time if the progress of the business outperforms revenue generation expectations. In Mainvest terminologies such investments are called as RSNs or Revenue Sharing Notes. In case of any business is offering 1.5x investment multiple and willing to share 5% of its revenue. It means that this business will pay a 5% share of their total revenue to investors quarterly until a 50% total return reaches 1.5x of the initial investment. Variables like percentage of revenue sharing, loan length and total return vary from business to business.
How does Mainvest make money?
Mainvest has a unique business model. It doesn’t charge any fee from investors however it charges 6% of the amount raised from the business.
Potential returns and cashflow:
In revenue share investments the borrower will pay an already decided proportion of their revenue quarterly until a specified multiple of the original investment amount is achieved. It may be 1.5 or 1.25 depending on the type of security. Such as in Revenue Sharing Notes any investor will receive 5% of the sales until the amount reaches 1.5x of their original investment but not for more than 5 years. If the investor hasn’t received the 1.5x till then, the full amount comes due. Mainvest has a very smart revenue sharing model that’s why a lot of businesses facing the unpredictable flow of cash find it very attractive. It is slightly tricky as compared to investments apples-to-apples. However, the thumb rule to get an estimated IRR equivalent is by taking the multiple raise it to 1 and divide it by the terms in years then subtract one. As an example, if the multiple is 1.5 and the terms of the year are 5 then it will work like this. 1.5^(1/5)-1 = 8.5%. This is far from the advertised returns of 50% or more than that. As an investor, you should be sure to understand the time horizons involved in it. If the multiple is completely paid before the term duration then the effective rate of return will be higher.
The breadth of offerings on Mainvest:
Mainvest offers investment offerings in every sector. The prime focus is on entertainment, medicine, food, brewery, cannabis, and marijuana industries.
Regulatory framework and due diligence:
As far as credibility and certification are concerned Mainvest is an SEC-registered Title III funding portal. This feature means that this platform is subject to a range of rules and obligations regarding investor due diligence and investor education. All of the developers offering Reg CF investments on Mainvest will have been through background checks of key owners and officers. Clear links are provided to the relevant SEC filings made by the issuer. Potential investors can also access an online channel for asking questions of the issuer.
Conclusion:
As an investor, you always feel tentative and concerned while investing your money in any investment platform. You don’t have much knowledge about the business in which you’re going to invest. Will it work for you or not? Mainvest has an understanding of all these concerns. Full business analysis data is available on the website from which you can check everything about the opportunity in which you’re going to invest. They’ve answered all possible queries in their FAQs section. The other plus is that Mainvest charge nothing from the investor and you can invest a minimum amount of $100. The numbers and growth of Mainvest are also a big reason to invest in this organization. Moreover, the website is interface is super easy to operate proceed.