Benzinga readers often prefer CrowdStreet or EquityMultiple as their top choices for crowdfunding platforms. If you’re interested in investing in crowdfunding but don’t know where to start, it can be overwhelming to choose the right platform for your investment goals. Crowdfunding allows multiple investors to pool their funds and participate in investment opportunities that were previously inaccessible. It also provides startups and entrepreneurs with an alternative to venture capital or large banks for fundraising. However, not all crowdfunding platforms are the same, so it’s important to do your research before investing.
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’s a crowdfunding platform out there for you. Read on to discover the top crowdfunding platforms for investors and learn how you can profit from this high-growth sector.
Quick Look: Best Crowdfunding Platforms
1. CrowdStreet: Best for Accredited Investors
CrowdStreet is an equity crowdfunding platform that focuses on real estate offerings. It caters to accredited investors and offers a range of investment options, including managed funds and stand-alone real estate investments. The platform allows experienced investors to customize their own real estate portfolio.
Pros:
– User-friendly platform
– Diverse offerings in various markets
– Strong track record of delivering investor returns
– Excellent investor resources
– Many offerings eligible for inclusion in self-directed IRAs
Cons:
– Only open to accredited investors
– High minimum investment of $25,000 for some investors
– Many offerings have long hold periods with limited liquidation options
2. EquityMultiple: Best for a Diverse Range of Offerings
EquityMultiple is an alternative investment platform that simplifies real estate investing using technology. It offers a variety of investment options, including short-term and long-term growth, and allows investors to select specific real estate opportunities without directly purchasing properties.
Pros:
– Fast returns (many offerings pay in less than 12 months)
– Access to commercial real estate investments
– Excellent client support
– Pro-investor platform
Cons:
– Only open to accredited investors
– Higher minimum investment of $5,000 compared to other platforms
– Fewer offerings than competing platforms
3. Streitwise: Best for Small Account Real Estate Investing
Streitwise is a real estate crowdfunding platform suitable for investors looking to build a smaller real estate portfolio. It offers offerings for both accredited and non-accredited investors and allows investors outside the U.S. to participate. Streitwise pays quarterly dividends and has low and transparent fees.
Pros:
– Offerings for accredited and non-accredited investors
– Open to international investors
– Scheduled quarterly dividends
– Low and transparent fees
Cons:
– 2% annual investment fee is higher than some competing platforms
– Redemption fees can be high if investors need to liquidate shares
– Fewer offerings than other platforms
4. StartEngine: Best for Investment Diversification
StartEngine is an equity crowdfunding platform ideal for investors interested in pre-IPO startup investments. It offers a wide range of crowdfunded offerings in various business sectors, and notable investor Kevin “Mr. Wonderful” O’Leary is a prominent backer.
Pros:
– Diverse offerings in multiple sectors
– Potential for high upside with startup investments
Cons:
– Startup investing is highly speculative and high risk
– Many offerings have long hold periods
– Limited or no secondary market for most offerings
5. RealtyMogul: Best for Newer Accredited Investors
RealtyMogul’s crowdfunding platform is suitable for non-accredited or smaller investors who want access to institutional quality real estate offerings. It also provides an opportunity for real estate investors seeking passive income.
Pros:
– Available to accredited and non-accredited investors
– Impressive diversity of offerings
– Lower buy-ins for institutional quality assets
Cons:
– Investor fees can be high (approaching or exceeding 2%)
– Many appealing offerings have high buy-ins ($50,000+) and are only available to accredited investors
– Newer platform lacks the track record of some competitors
6. Mainvest: Best for Investing in Small Businesses
Mainvest is an investment platform that allows investors to generate passive income while crowdfunding small to medium-sized local businesses across the country. Investors’ capital is pooled and lent to small businesses, and investors receive income based on loan interest.
Pros:
– Open to non-accredited investors
– Low buy-ins starting at $100
– Accepts individual retirement account (IRA) contributions
Cons:
– High risk profile of loans
– Economic pressures on small businesses can affect investor returns
– No mobile app
7. GoFundMe
GoFundMe is a fundraising platform suitable for individuals or investors who want to financially support small businesses or causes. It is not an equity crowdfunding platform and does not focus on investor returns.
