A new way to invest in early-stage companies
More options to diversify your portfolio
Some of the most valuable companies aren’t listed on the stock market, and the number of companies getting listed is decreasing each year. So, lots of people are being kept out of all the value that’s being created by businesses. According to an article in Bloomberg View, this is part of a long-term trend with many possible causes.
With Netcapital, you can invest in companies that aren’t on the stock market (yet). More than that, you can diversify your alternative investment portfolio by investing lower dollar amounts in more companies—something that’s difficult to do on your own. Keep in mind that most investors shouldn’t allocate more than a small portion of their total portfolio to early-stage companies. Learn about the risks of this type of investing.
Minimums as low as $99
The laws changed earlier this year, so now you don’t need to be super-rich or a professional investor to invest in startups, though there are limits on how much you may invest in a year. We’ll help you figure out your limit when you invest in a company. Netcapital doesn’t charge investors any fees at all, though we do charge companies a standard 4.9% of the total amount if an offering is successful.
Browse offerings at your leisure
We’re working with a number of companies every day to add more offerings to our web site. Check back regularly or create an account to receive our email alerts.
Fast, organized group due diligence
We publish the documents you need to evaluate a company on its merits. Review the company’s pitch, team, risks, financial statements, offering statement, and other disclosures. Ask questions of the founders. Discuss the deal with other potential investors in our public forum. You’re not on your own, even if it’s up to you to decide if a particular investment is right for you. We also cover the basics: reviewing each offering before it’s posted and conducting background checks on many of the people involved.
When you’re ready, invest easily
Our legal documents are fairly standardized to make your review easier. Just click the invest button and share some basic financial information so we can record the sale. If you’ve invested with us before, we’ll speed you through the process, confirming what you've already told us and collecting only the information that’s changed.
Offerings only close if they reach their minimum
Offerings have a minimum, a maximum, and a deadline. They need to reach their minimum dollar amount to close. You can make a commitment to invest in an offering as soon as it appears on our web site. You can cancel that commitment until 48 hours before the deadline—after that, it's final. If the offering doesn't reach its minimum, all funds will be returned to your account.
Some Companies Conduct Rolling or Multiple Closes
Some issuers may choose to conduct rolling or multiple closings during the period between meeting their offering minimum and maximum and before the offering deadline. Issuers that may conduct rolling closes will disclose this intention and the terms of the rolling close in their offering statement. If a Netcapital issuer reaches its target offering amount prior to the deadline, they may conduct an initial closing of the offering early if they provide notice about the new offering deadline at least five business days prior to the new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Netcapital notifies investors when the issuer meets its target offering amount. Thereafter, the issuer may conduct additional closings until the offering deadline.
Investing money is just one way to participate
Join a community of people committed to making companies stronger. In addition to making financial investments, you can support companies by providing feedback, asking entrepreneurs good questions, connecting companies to your professional network, and offering your opinions and expertise.