Early Stage Life tracks over 1,000,000 investors and over 3,800,000 people who hold key positions in these companies. They’ve ranked the top 101 Business Development investors in the United States.
Early Stage Life selected the organizations listed in this article based on:
In a Nutshell: Retail investors have traditionally lacked access to opportunities with early-stage companies with the greatest growth potential, and startups have traditionally had difficulty accessing capital. Netcapital solves both problems by connecting investors and firms on a common platform. Netcapital provides innovative tools and insights to manage portfolios and set up offerings that help streamline the investment marketplace.
Fintech Energy tracks over 200,000 FinTech startups and over 1,000,000 people who hold key positions in these companies. They use this directory of startups to highlight top employees, founders, and organizations they think deserve more appreciation. They selected the organizations based on Track record, Executive leadership, Market share, Innovation, and ESG rating.
View Fintech Energy's articleVR headsets let you see with your eyes and hands, but how you move is still bounded & restricted. In today’s landscape, common experiences include:
Existing Virtual Reality technology like treadmills, slide mills, trackers have all fallen short of allowing natural, true movement.
A 24 year old tech enthusiast decided to change the way we move in VR by designing and building a natural movement, omnidirectional platform in his garage. After years of drawing up practical solutions for problems that still exist in the VR space, he wanted to start his life-long journey into the VR industry by fixing one of its most complicated problems.
Unlocked Reality is focused on providing users the ability to free the body to follow where the mind wanders.
“What Unlocked Reality is building is something that really opens the gateway to the metaverse. Their use of maglev technology gives users this effortless, seamless but still realistic experience of walking and moving around a digital space.”
- Lori-Lee Elliott, CEO of Future sight AR (YouTube)
The metaverse is a quickly expanding technology and market, and it's missing a way to naturally move around in it. The world is already quickly adopting AR and VR tech to improve efficiency and build utility, in preparation for the next generation of tech. There is a huge shift happening right now. A large majority of mainstream companies such as Facebook, Apple, Epic Games, and many more have said they are working on metaverse projects (XR Today).
In 2020, the global VR headset market size was valued at $7.81 Billion USD. From 2021 to 2028, it is expected to grow at a compound annual growth rate (CAGR) of 28.2%, according to Grand View Research. Thus, there is a huge demand for products that support VR, XR, AR, and the metaverse. VR adoption stats for 2020 showed that there were 57.4 million VR users in the US and 90.9 million AR users, according to Finances Online (Statista).
This is very appealing for investors, especially because the global augmented reality (AR), virtual reality (VR), and mixed reality (MR) market is forecast to reach 30.7 billion U.S. dollars in 2021, rising to close to 300 billion U.S. dollars by 2024. (Statista)
As Lori-Lee Elliott, CEO of Future Sight AR, said, “What’s key to remember is that VR is not just a gaming technology. It’s used across verticals including in the military for mission planning and training, in the construction industry for doing site orientation and training on how to do hazardous tasks, and across enterprises at large” (YouTube).
Our large long-term target market of enterprise is looking for VR products that provide high-fidelity solutions.
Our primary focus is to target enterprise expansive verticals such as healthcare, physical rehab, and therapy, remote events, along with several other markets making massive efforts to use technology like ours. With a unique product and deep enterprise relationships from those who we believe would immediately benefit from our solution, we are maneuvering into a wide-open, blue ocean market. As we grow, we want to expand into the vast number of benefited enterprise verticals by creating even higher fidelity products. With a unique solution, we plan to also target consumer verticals.
Our patent pending design aims to provide freedom in movement. What if you could walk naturally in any direction while staying in one place? Unlocked Reality’s platform aims to transform locomotion in a virtual environment.
The ability of the platform to recognize a user's unique gait pattern and predict their movement through machine learning is a gamechanger. I believe this will help customize the virtual reality therapy experience for each patient's functional ability
- Veena Somareddy, CEO/Co-Founder of Neuro Rehab VR (YouTube)
There are two different methods we could use to achieve this effect:
Dynamic friction reduction is achieved by controlling the users’ interaction with the ground or platform surface by physically changing their exposure to either a high or a low friction surface (dependent on the method) at specific times during a walking cycle in order to prevent the user from displacing themselves. Using the platform (and shoes), we are working towards providing users the ability to move untethered as the friction keeps them in one place. To keep in step with the user, our methodology is driven by machine learning to tailor the system to each user’s unique gait pattern.
Currently, we are planning on building individual-sized platforms, but our methodologies could be scalable to platforms of any size, from personal to multiuser.
Our vision at Unlocked Reality is to build a family of products that will be the standard for fully immersive VR and make virtual reality movement natural & fluid.
To learn more about us, please visit netcapital.com/companies/unlocked-reality
Traction is another word for momentum. In other words, how fast is a company growing? How well are they achieving their goals as a business?
As an investor, you’re likely on the lookout for traction in your prospective investments. For companies that have already built and launched their products, there are a few indicators of momentum that you can look to, including:
A company’s sales pipeline refers to prospective clients or customers they’ve engaged with, with the ultimate goal of making them a paying customer. Hubspot Research found that there’s a positive relationship between the number of opportunities in a company’s monthly pipeline and revenue achievement. For companies that sell services to other businesses, a healthy sales pipeline can be a sign of interest and future customers.
The number of active customers/users is a key measurement of traction, even if a company has yet to determine their revenue model or charge for their product. In fact, the number of users or customers may help a company’s team determine their business model as well as when they’ll be able to begin generating revenue.
The number of customers/users a company has is a good metric for growth, however it’s also important to note what happens after the company acquires a customer. Customer retention rate is especially helpful for understanding if a company’s product or service keeps their customers engaged.
In the second part of this blog, we’ll take a look at 3 metrics you can use to gauge traction for companies that have yet to launch their product. Be sure to stay tuned for updates!
Interested in learning more about investing in innovative private companies? Take a look at our current offerings.
Netcapital CEO Jason Frishman, in an interview with SNN Network, describes how the company has created opportunity for average investors to invest in early stage private companies.
In our previous blog, we discussed how public and private companies are different when it comes to investors buying equity. Another major difference between public and private companies is in how companies report, file, and interact with the SEC.
Any business, big or small, that wants to sell securities and raise capital must be aware of federal securities laws. Even if a company sells securities to only one person, the sale must be registered with the SEC or conducted under an exemption from registration.
The U.S. Securities and Exchange Commission (SEC) is in charge of regulating the selling, trading, and buying of securities, such as stocks. The SEC’s mission is to protect investors, maintain fair, orderly and efficient markets and facilitate access to capital. Companies that want to be publicly traded file registration statements with the SEC as part of the process of going public. Private companies raise capital under various rules that exempt them from filing a registration statement.
You might have recently heard about prominent startups like Airbnb or Bumble “going public”. Companies go public for a variety of reasons, including:
However, there are important cost and regulatory concerns about becoming a public company, including:
As a result, more companies are choosing to stay private for longer, according to Forbes. However, private companies are still in need of funding, and everyday investors should be able to invest in exciting, innovative solutions. In our next blog, we’ll be discussing how Netcapital helps private companies raise money.
Interested in learning more about how Netcapital is democratizing the private capital markets? Take a look at our FAQs
Disclaimer: All information contained in this blog post should not be interpreted as financial or investment advice. Netcapital does not guarantee any return on an investment in any securities. Netcapital Systems LLC is neither a funding portal nor a broker dealer.
Netcapital empowers people to invest in private market companies. But what exactly is a private company? Why is being able to invest in one important? In our new blog series on public versus private companies, we’ll be breaking down the major differences between the two and explaining how Netcapital is bridging the gap between investors and the private market.
There are two types of businesses: private and public. One of the biggest differences between public and private companies is who can buy equity in the company and how.
Anyone can buy stock in public companies because their securities are bought, sold, and traded through over-the-counter markets or stock exchanges. However, before 2016, private companies had limited options for raising capital and pursued financing through venture capital firms, institutional investors, and accredited investors, which are high net worth individuals. Because of this limitation, the majority of investors were excluded from private investment opportunities.
For the past four years, the SEC has allowed private companies the option of accepting investments from non-accredited investors through platforms like Netcapital.
Buying equity in the online private market is an opportunity for both sides of the equation. For investors, investing is a unique way to support businesses they care about while expanding their portfolio. At the same time, founders raising capital no longer have to “know the right people”, instead, anyone can invest in their private business.
If you’re interested in investing in private companies, take a look at our current offerings or sign up for updates.
Disclaimer: All information contained in this blog post should not be interpreted as financial or investment advice. Netcapital does not guarantee any return on an investment in any securities. Netcapital Systems LLC is neither a funding portal nor a broker dealer.
Written by Northstar Technologies team
Northstar Technologies transforms the most advanced building materials into everyday living and working spaces. The results are surprising, yet easily appreciated. We believe functionality, safety and durability should not come with compromises to the environment or your well-being.
Northstar Technologies is reinventing the construction industry through the benefits of Fiber Reinforced Polymer (FRP) composite materials. Through diligent engineering and a desire to challenge long-standing construction practices, Northstar can provide the end-user a structure that looks familiar on the outside, but on the inside, contains a blueprint for next generation living.
Either at work or home, imagine your environment protected from the impact of a Category 5 hurricane, EF5 tornado, small arms ballistic ammunition and even a 30-minute fire rating, allowing you, and the ones you care about, enough time to evacuate to safety. Every Northstar structure comes standard with these incredible features.
Northstar Technology does not stop there! We believe the time has come that sustainability needs to be more than just a concept. With Northstar patented FRP systems and methods, we make sustainability a reality. The FRP materials are thinner, lighter and stronger than conventional construction materials. This allows for additional interior space that can be utilized for higher rated insulation. Combined with the non-thermal transfer that is inherent with all FRP materials, energy costs are substantially reduced as well as the maintenance cost that accrue over the lifetime of the structure.
Northstar Technology was founded to bring all of our FRP composite systems to the global construction market. The Northstar team has worked hard to bring the benefits of using FRP materials at a price that is comparable to conventional concrete block construction. We manufacture your project within a controlled environment, ensuring quality control is completed with the highest standards. Certified under the Florida Product Approval Testing & Standards ensures our customers will have the confidence they need to smartly invest in a product that can be passed down to generations to come.
SAN FRANCISCO (December 23, 2020) – MYXR Inc., an engagement software and augmented reality syndication company that provides a suite of products and solutions across multiple vertical industries, announced a private market equity offering on the Netcapital funding portal.
The company is offering $250,000 to investors as it is about to release its two main software platforms, Engage 2.0 and Experience Platform 3.0, scheduled for roll out in 2021. NetCapital was chosen for this raise because of its commitment to compliance, ease of use by investors, and availability of liquidity to their investors.
MYXR, based in San Francisco, works internationally with companies, entertainment groups, governments, non-profits, schools, professional sports groups and leading brands to enhance the experience and engagement of their clients or constituents through its software and augmented reality (AR) products.
“We're passionate to inspire, empower, and entertain with our platforms - for our users and partners around the world,” said Hans Koch, Chairman, and CEO of MYXR.”With the new digital landscape today, we are seeing demand globally for our platforms, and after years of work, we are excited to bring them to market in 2021.”
MYXR’s platform is proving to be particularly useful during the COVID-19 pandemic. Using gamification technology, Engage 2.0c is designed to reward users for actions taken to benefit others. So, for example, the platform can be used to reward checking on the health conditions of others, donate food or blood to those in need. Users will earn points redeemable with partner brands and local partners.
The company, formed in 2017 and post revenue, was recently rebuilt with a global mindset. MYXR designs its products with the user in mind, seeking their input as the product is refined throughout its development. “Our business thesis is to understand the user first, and then build products for them to deliver ROI to all the stakeholders of the company,” Koch said.
Information on the offering can be found at https://netcapital.com/companies/myxr
2020 began uncertainly for early-stage companies. The pandemic significantly impacted most industries and venture capital funding slowed at the start of the year. However, many investors and businesses turned to the online private markets, and continued to do so throughout 2020.
The online private markets refer to funding portals like Netcapital, which facilitate investments in early-stage private companies. These are companies that haven’t filed with the SEC to be public and don’t have shares trading on public exchanges.
Before 2016, only accredited investors, or high-net-worth individuals, had the opportunity to invest in early-stage startups. Now, anyone can invest in early-stage companies through the online private markets.
According to KingsCrowd, a data analytics platform that previously raised on Netcapital, the online private markets grew rapidly this year. Before December, investors eager to fund innovative ideas committed a total of $177 million in funding to companies raising capital via online private investments.
After an initial drop in funding from January to February, the total amount of money raised this year via online private investments outpaced the amount raised last year by 89%.
2020 also brought significant positive changes to industry regulations. In May, the SEC made it easier for small businesses impacted by Covid-19 to seek funding online from investors. The SEC followed with major rule changes in November that among other things, increased the cap for Regulation Crowdfunding raises and extended the Covid-19 exemptions.
This year has been marked by major upheaval, but entrepreneurs and their supporters have risen to the challenge, solving new problems and adapting to the unpredictable. We’re thrilled to be a part of this ecosystem, and look forward to continuing to empower entrepreneurs and investors in the online private market.
Interested in supporting big ideas? Create an account today
T2M has created the go-to accessory for a superior mobile gaming experience, for both professional and casual gaming. Our Rotor Riot controller eliminates game lagging and prevents mis-taps, ensuring uninterrupted gameplay.
There are 2.7 billion mobile gamers in the world, growing this year’s market faster than expected. The 2020 gaming market is now worth $175Bn (+19.6%) with mobile games outpacing the overall growth, jumping to $86.3Bn (+25.6%) (Newzoo).
T2M is uniquely positioned to take advantage of the $1B esports market through our ownership of T2M Sports. T2M Sports is working with one of the largest esports promoters to create the first ever mobile gaming tournament. The company also anticipates collaborations with ESL, Epic, F1, and Apple.
T2M’s Rotor Riot controllers are currently available in-store and online with numerous retailers, including: 500+ Apple Stores worldwide and online, the top 900 Target stores and the top 800 Best Buy stores. T2M’s Rotor Riot controller is also the #1 selling standard controller on Amazon.
The T2M management team has years of experience in the gaming product space, with expertise in consumer electronics retail as well as global experience in both mechanical and design engineering.
T2M’s products are mass market, non-platform specific, and are of better value compared to competitors such as Razer, Steel Series, and Xbox. Additionally, our iOS Rotor Riot controller is Apple Certified MFi (Made for iPhone) and is compatible with iPods, iPads, and iPhones.
Crowdfund Insider, in an interview with Jason Frishman, updates readers on Netcapital’s business and the opportunities created by the recent move by the SEC to raise the Reg CF funding cap.
With this year’s cold and flu season starting in the middle of a global pandemic, everyone is asking the same question: how can I stay healthy? We’re offering a solution: Vymune.
Vymune is our patented, scientifically proven antiviral.
A few things to know about Vymune:
Vymune is an all-natural broad-spectrum antiviral composed of amino acids, bioflavonoids, and co-factors. Whether you’ve come down with the flu or another common virus, it works quickly to suppress symptoms by activating your immune system. It also provides superior immune support to protect and defend your health and is safe for everyone, including the elderly, children, pregnant women, and immuno-suppressed individuals.
Vymune will be sold as convenient, non-prescription melt-away tablets. Our product has a high margin, with a unit cost of $6 and a planned selling price of $20 per unit. We’ll initially target consumers through Amazon before moving to brick and mortar retailers throughout the United States.
We get this question a lot! We’re collaborating with Oglivy, an award-winning global marketing agency, to develop a custom product rollout for Vymune. We expect a December launch in time for Flu season.
Investments in early-stage companies can take many forms. It all depends on what type of security a company is offering. A security represents ownership of or a financial relationship with a company. Here, we’ve outlined the basics of 3 types of securities all investors should know.
It’s hard to put a price on an idea. But when an early-stage company decides to raise capital, that’s often what they have to do. One of the benefits of a convertible note, according to venture capital firm Quake Capital, is that it delays valuing a company. This is because investments via convertible notes are a form of debt, where investors are paid back later in equity instead of cash. Usually this happens during a later round of funding, when the company has a valuation. The convertible note is converted into equity with a discount to the company’s value.
In recent years, an alternative to convertible notes has been gaining popularity: SAFEs or a “Simple Agreement for Future Equity”. SAFEs were created by well-known incubator Y combinator as a less complicated substitute for convertible notes, according to Funder’s Club. The main difference between the two is that a SAFE is not a form of debt.
Stocks or shares are perhaps the most straightforward and well-known type of security. When you buy a share of a company, you’re buying a piece of that company. However, it is important to note that there are differences between preferred and common shares. One key difference is that preferred shareholders have preference over common shareholders if the company is ever liquidated, meaning they would be paid out first.
Before you invest, you should be sure to double check the type of security the company is offering. Being an informed investor is important. While this blog post is a good place to start, there’s always more to learn! Create an account for updates or take a look at our FAQs for more information.
Written by GenesisAI CEO Archil Cheishvili
Currently, there are fundamental problems with AI that hold AI innovation back. There is no communication between AIs; there is no way for AIs to exchange data, trade services, learn from each other, or expand their own capabilities.
Furthermore, 99% of companies in need of AI services cannot get AI work done because these organizations cannot afford their own team of experts, nor do they have the technical capabilities to correctly determine from which open-source APIs to grab AI code.
GenesisAI helps companies in need of AI services connect with companies who would like to monetize their AIs. We match unused resources (in-house developed AIs and open-source Github AI code) with companies in need of these resources. The connector of these two parties will unlock trillions of dollars in market value.
GenesisAI’s platform not only connects AI services with companies in need of AI technology but it also enables AIs to connect with each other, trade services, exchange data and be used together to create more complex AI. Our platform solves the most important problems in the field of AI by allowing AIs to interact and learn from each other.
GenesisAI has 4 main goals:
We have gathered a team of recognized experts, thought-leaders, and entrepreneurs to solve foundational problems in the field of AI.
It’s time to take back the reins from large oligopolies who currently control the vast majority of AIs. The time has come to make AI better and accessible to all. This is a chance for us to change the world together.
Written by WaterWorks CEO Lon Johnson
WaterWorks seeks to advance potential water solutions by introducing investors to opportunities in technology companies and projects through our online investing platform: waterworksfund.com
Watch Party’s story starts with Mark. Mark watches a lot of TV, which is (surprise!) how he came up with this idea. We’re constantly surprised by the shows he shares with us, and the linkage, or lack-there-of, between them. They don’t fall neatly into any one genre.
Mark truly loves television, and so does the rest of our team. We understand that identifying with a TV character makes you feel seen, or a little less misunderstood. We know the feeling you get when your favorite show ends, or your favorite character is killed off. It feels like you lost a friend. The disappointment you feel when your favorite show gets cancelled? We know it well too. And we’re not embarrassed to admit our familiarity with the message Netflix sends when you’re on a TV bender.
We found ourselves experiencing the same pain points, and asking the same questions. Why is it so hard to find a new show to watch that I would actually like? Why do I get so pigeon holed in Netflix’s algorithm that their suggestions are useless? Why can’t I easily find the shows my friends are watching? Why do I always get stuck in group chats where there’s no respect for spoiler alerts? I’ve been paying for Showtime for months to watch this one show, why didn’t I know it was also on Netflix?
Why isn’t there an app for all of this? Why don’t we build one?
While we can’t clean up those empty Ben and Jerry’s pints for you when your favorite show ends, we can connect you with your friends and the shows they watch so you can find your next show to rave about. That way you won’t have to spend your 3rd night in a row scrolling through Netflix, finding nothing, then going to bed frustrated. Does that sound like a personal problem? That’s because for us, it is. That’s why we’re the right guys (and gal) for the job. So, what’s the hold up? Let us help you find your next favorite show.
In any investment opportunity, a good understanding of the company you’re investing in is essential. At the heart of every company, whether it’s an established public company or an emerging start-up, is a business model.
Investopedia defines a business model as “a company’s plan for making a profit”. That plan can encompass many things: products, services, target markets, market strategy — the list goes on.
If you’re interested in investing in a company, here are a few questions to ask yourself to better understand the company’s business model:
If the startup is a B2B company, meaning that their product or service is for businesses, you should consider if they’ve laid out a pathway to reach companies in their target industry. If the startup is B2C, meaning that their product or service is for customers, you could consider if the company is solving a problem you’ve had and if you would use their solution over other ones in the market.
It may be helpful to use yourself and people you know as yardsticks to measure how exciting or useful a startup might be. Keep in mind that if you’re excited about a company’s solution then there’s a chance that potential customers may be too.
Curious about investment opportunities on Netcapital? You can check out our active offerings here.
You can find us on Twitter, LinkedIn, Facebook, and Instagram.
Disclaimer: All information contained in this blog post should not be interpreted as financial or investment advice. Netcapital does not guarantee any return on an investment in any securities.
BostInno profiles Netcapital in an interview with Jason Frishman:
FinTron was created with a simple goal - to accelerate the financial stability of my generation, the mobile generation (Y and Z), by transforming how we budget, bank, and invest. While a senior at Sacred Heart University, I studied business, finance, and programming. Finance had always been intuitive to me, but investing was intimidating for many of my friends and colleagues, and personal finance was difficult to grasp. I launched FinTron because I knew there was a way to make investing and banking less intimidating and expensive for people my age.
Fast forward, and 18 months later, we have raised over $550,000. FinTron now has a full-time staff of six and a rotating intern cohort of 5 - 15 students. We’ve created an innovative and straightforward interface that will offer free ATM withdrawals worldwide, interest-bearing checking accounts, unlimited trading in 600+ fractional securities, recurring investments in three popular index funds, and a master budgeting tool, among other features, for just $2 a month. We also built a simulated stock trading game to help people of all ages learn to invest and compete for cash prizes before investing their own money.
The mobile generation remains a hard target market for most major financial institutions. 40% of millennials have never had investment exposure, and unchecked discretionary spending has left 46% of the mobile generation with $0 in their savings accounts. We built FinTron to fix this.
First, I built a young tech/product team to develop a product for young people. After creating a great product, driven by a social mission, we recruited some of the most experienced financiers and C-Suite level executives in the industry to guide us through the regulatory environment and collaborate with us on everything from digital marketing to product strategy. Our BOD and C-Suite directors include Executives from Deutsche Bank, Kraft Heinz, General Mills, and UBS. We’ve even partnered with APEX Clearing Corporation, one of the most popular FinTech clearing firms in the United States, the former clearing firm of Robinhood and current clearing firm of Stash, SoFi, and FirsTrade.
Whether you’ve just started building your investment portfolio or you’re a seasoned angel investor, there are a few things you need to know before you invest in private companies online. Today we’re answering three common questions investors have about investing in online private market offerings.
There’s a broad range of securities that private companies can offer — common stock, convertible notes, SAFEs, preferred stock. The type of security offered differs by the online investment platform and issuing company, so be sure to check before you invest. Companies on Netcapital typically offer common stock.
For non-accredited investors, keeping track of investments is especially important. This is because your annual funding portal investment limit includes investments made across all funding portals. If you choose to only invest through one portal, managing your investments may be simpler since everything will be in one place.
If you decide to invest on multiple investment platforms, you can still track your investments through services like KingsCrowd, a ratings and analytics platform for online private markets. KingsCrowd offers a tool that lets you create and track your investment portfolio.
Online investment platforms work to facilitate investments — following up on your investment is up to you. You should be proactive about staying up to date with the latest developments and news on the companies you invest in. Follow their social media accounts, track the company on KingsCrowd, sign up to join their email list, and keep an eye out on industry news and trends. If a company’s online raise is ongoing, you should also check their offering page for updated information.
While these questions are a good starting point for learning about online private markets, there’s always more to learn! Create an account for updates or take a look at our FAQs for more information.
Dome Audio Inc. is a tech company, patent holder, and producer of a disruptive proprietary headphone, specifically, bluetooth, bone conduction, surround sound headphone, with interchangeable Noise Isolation Dome Covers, notably, a fashion accessory.
Dome is East Coast-based, established in January 2018. Its founder and IP developer, Ben White, is a veteran of the music industry. His decades as a professional musician, songwriter, and producer and engineer have afforded him invaluable insight into audio and sound fidelity.
His partner Tim Wright, who is the Chief Strategy Officer, is an NFL Super Bowl Champion and business owner of The Wright Cut. He is a graduate of Rutgers University and has more than ten years of entrepreneurial experience.
Dome D4 Headphones is a proprietary design in its third iteration prototype and currently in the manufacturing evaluation and pre-production phase.
Dome's business model is centered around three pivotal concepts:
Dome Audio could be viewed as a "Super Boutique Tech Company," who doesn't claim to have the "best sound" in headphones, but instead the most innovative, versatile, fashionable, and functional "audio-wear" headphones in the headphone space. And yes, the audio fidelity is as bonafide as it is unique!
Consumer demand will be strategically stimulated via "Branding Themes," i.e., campaigns premiering Dome headphones and "limited edition" Dome Covers, as well as other brand (collaborative partners) campaigns.
Dome's patented technology offers consumers options, via its proprietary "open ear" full-fidelity audio experience and its interchangeable "fashion wear" Dome Covers, not found amongst any headphone competitors in the marketplace.
The Nasdaq website ran an article touting Netcapital as a platform for investors to buy shares in private market companies and highlighted five companies on the platform — Shockwave Motors, WaterWorks, Backers Inc., Yahyn and Spring Rock Holdings LLC.
How does the SnapShyft Labor Marketplace compare to the multitude of third-party staffing solutions? Here are some examples of how we build trust:
Fully Screened — Principal among these is the extensive screening and diligence process professionals go through before gaining approval to use the platform. This process includes thorough criminal background checks and verifications, reference checks, industry certifications, et al. Once approved, professionals must abide by the terms and Community Guidelines to remain active members of the community.
Transparency — We do not apply a percentage markup to hourly rates. Instead, we charge businesses a flat success fee for any successfully worked shifts. This means the rate a company pays per hour is exactly what the professionals receive in their bank accounts. To date, workers are earning an average of 50% more per hour than the national industry rates; and this excludes any earned tips.
Vertical/Sector Focus — SnapShyft is hyper-focused on the foodservice/hospitality and food manufacturing sectors. This allows us to be industry exclusive, leveraging our expertise and the vast ecosystem of workers in this space, allowing workers to leverage their skillsets on-the-fly to generate additional income and pay their bills; while providing a consistent & reliable solution to the businesses.
No Bias/No Discrimination — We built a blind match system; in other words, we don't allow businesses to actively pick and choose between available interested professionals that wish to work a shift. Through diligent research, we have found that such "selection" leads to severe discrimination and bias; from the outset, we chose to ensure diversity and inclusivity.
Execution is Everything — SnapShyft has a fulfillment rate of +94% (compared to 34% industry average); 3X the fulfillment means we can deliver peace of mind for the businesses in need — Execution is everything!
Due diligence is a relatively nebulous term. According to TechCrunch, performing due diligence on a company largely depends on a company’s stage, the industry sector, the opportunity itself, and of course, who is doing the vetting.
For companies trading in public stock exchanges, such as NASDAQ and the New York Stock Exchange, due diligence includes monitored disclosures and coordination with regulatory authorities such as the Securities and Exchange Commission (SEC).
In the world of venture capital (VC), due diligence is considered to be more of a black box — every VC firm conducts its own due diligence, which means there is a wide-range of methods. These methods usually include looking at financial statements and determining market fit. Ultimately, VCs conduct due diligence with a goal in mind: determining if they want to invest or not.
Investing on Netcapital’s platform enables you to act as your own venture capital firm — whether or not an investment is good and aligns with your investment strategy is up to you. Due diligence is an important step in any investment, and whether you’re an experienced angel or a first-time investor, Netcapital provides you with a level playing field to make that step easier and transparent. This process includes a 144 point checklist, a background check on the company leadership and a review of financial documents.
As an investor on Netcapital, you should conduct your own due diligence. Here are a few ways to get started:
Being an informed investor is crucial, and due diligence is a large part of that. Netcapital is committed to providing a secure transaction platform and access to necessary information so that you can stay informed while making your own early-stage investment decisions.
To learn more about private market investment opportunities, follow Netcapital on social media.
You can find us on Twitter, LinkedIn, Facebook, and Instagram.
InvestorPlace profiles Netcapital, calling it “One of the leading equity crowdfunding platforms.”
As more private market investment opportunities become available online through platforms like Netcapital, you may be asking yourself, “How do I decide what to invest in?”. Ultimately, the answer to that question will be based on your needs and interests. If you’re not sure where to start, Netcapital is posting a series of blog posts on factors you should consider before investing. Last time, we covered risk. Today, we’re discussing the founding team.
LEARN MORE: Curious about investment opportunities on Netcapital? You can check out our active offerings here.
Founders are often the visionaries behind the company, the engine that keeps the whole operation moving forward. As the face and heart of the company, the leadership team can be an important element of the success of an early-stage startup. So if you find an offering you’re interested in, you may want to consider who their team is.
Here are a few questions you could consider when you’re looking at a company’s leadership team:
On Netcapital’s platform, you can easily find a company’s founding team towards the bottom of their offering page or by navigating to the “team” section from the drop down menu under “pitch”. Reading all of the leadership team’s profiles will allow you to better understand their experience and background. If you want more information, try Googling the team members or following them on LinkedIn. You can also use the Q&A section of a company’s Netcapital offering page to ask the founders questions. Additionally, Demo Days are a great interactive way to see the people behind the company you’re interested in.
Founding a startup company can be a long winding road for some and a direct path forward for others. A good understanding of a company’s leadership team can help you gauge how they’ll navigate their own entrepreneurial journey.
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Disclaimer: All information contained in this blog post should not be interpreted as financial or investment advice. Netcapital does not guarantee any return on an investment in any securities.
Venture capital (VC), like most industries, is rapidly changing in response to Covid-19. Following years of record deals and large investments, VC firms are switching gears to a more defensive and slower-paced strategy, according to Pitchbook. The results of this are already becoming clear - in the first three months of the year, global VC funding was down 30%. This decline in private market funding is the second steepest in a decade and is expected to continue throughout this year, according to CB Insights.
Many VCs that are still providing funding are sticking with what they know and continuing to work with startups already in their portfolio. “VCs will need to focus on portfolio companies, maintain reserves and increase rigor around diligence and post-investment execution,” writes Kareem Aly, a principal at Felicis Ventures, in a post for Crunchbase.
While VCs are adapting to a changing landscape, startups still need funding. Pitchbook estimates that at least 7,200 companies will be seeking funding soon based on the timing of their last round of funding. Additionally, many startups are in need of support following Covid-19 related challenges.
Private market investment platforms such as Netcapital have recently been further empowered to potentially fill some of the void left by VCs. In early May, the SEC temporarily changed the rules that allow startups to host equity offerings online. The changes were meant to expedite the process for online listings for small, established companies directly or indirectly affected by Covid-19.
Small businesses, including early-stage startups, are the foundation of our economy, generating roughly 44% of U.S. economic activity, creating two thirds of net new jobs, and fostering innovation. Funding for these companies is evolving, but remains essential. Following the temporary SEC rule changes and proposed new rules allowing bigger raises, private market investment opportunities may become a larger part of what sustains small businesses and startups.
Interested in learning more about Netcapital and private market investment opportunities?
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Great News. Netcapital has given you more options and expanded the available payment methods you can use to fund your investment commitments! You can now choose to pay for your investments on Netcapital with the convenience and familiarity of using your credit or debit card. With the addition of credit/debit cards, investors can pick from one of 4 ways to invest: by credit/debit card, ACH transfer, wire transfer or transfer from your Netcapital wallet account.
To fund your investment commitment using your credit/debit card, simply select this option and include your card details as part of the investment check out process at www.netcapital.com.
For more detailed information about using credit/debit cards, please click here.
As more private market investment opportunities become available online through platforms like Netcapital, you may be asking yourself, “How do I decide what to invest in?”. Ultimately, the answer to that question will be based on your needs and interests. But if you’re not sure where to start, Netcapital is posting a series of blog posts on factors you should consider before investing. Today, we’re discussing risk.
LEARN MORE: Curious about investment opportunities on Netcapital? You can check out our active offerings here!
Every investment opportunity has some degree of risk. In the case of startup companies, early-stage investments can potentially yield high rewards, but there’s a high risk of loss as well. Companies with billion dollar valuations, known colloquially as “unicorns” are called that for a reason: they’re relatively rare. Startups don’t always succeed, so consider outlining a budget for your early-stage investment portfolio before you invest. When budgeting, you should take into consideration your legal investment limit for online offerings, which is determined by your annual income and/or your net worth. You can calculate your investment limit by going to Netcapital’s educational materials and risks page.
Although each deal on its own carries high risk, as a whole, investing in early-stage startups can potentially provide favorable returns. Diversification, or investing in multiple opportunities, can minimize the chances of an unexpected market event weakening your whole portfolio. For example, having a diverse portfolio helped some investors weather the 2008-2009 market following the financial crisis, according to Fidelity Investments. After outlining your initial budget, it may be advantageous to consider spreading out your investments. For example, if your budget is $5,000, you could choose to invest all $5,000 in the first offering that catches your eye. Or you could choose to invest $500 in 10 companies, or even $250 in 20 companies.
Early-stage investment opportunities are exciting - you have the chance to get involved in cutting-edge technologies or support innovators who are hoping to shake up the world. And when you’re realistic and purposeful about your investing strategy, that excitement transforms into an opportunity to invest in startups that you’re passionate about, without breaking the bank.
Disclaimer: All information contained in this blog post should not be interpreted as financial or investment advice. Netcapital does not guarantee any return on an investment in any securities.
The entrepreneurial journey can be particularly long and difficult if you are a minority founder, and this is especially true for Black founders. Netcapital recognizes this and recently highlighted five Black founders currently raising on the platform through a virtual demo day.
WATCH: Invest in Black Founders - a Netcapital Demo Day on Netcapital’s YouTube channel.
Netcapital had all-time high attendance at the event. The five presenting founders included leaders from Charles & Company, Deuce Drone, Dome Audio, ecoText , and Watch Party.
Startups are fast-growing businesses that need to raise capital in order to launch and scale. Traditional ways of raising capital such as pitching to venture capital firms (VCs) and institutional investors are historically less accessible to minority founders. Although several VCs have now committed to raising funds specifically for minority founders, these funds may take time to make an impact.
However, due to SEC rule changes in recent years, anyone can invest in startups through offerings on fundraising platforms such as Netcapital. You can support Black-founded companies by buying shares for as little as $100, or less in some cases. Investing can be a long-term commitment to supporting and interacting with a business in a way that has a greater impact than a one-time purchase.
Racial injustice is front and center in the news right now, but when the media coverage stops and the protests slow down, the commitment to supporting Black founders and Black business leaders must continue. Check in on the companies you follow, buy from, and invest in. Become a regular customer and their biggest cheerleader. There’s always a way to help make a difference, and that can start with you, your dollar, and your follow button.
Interested in learning more about Netcapital and private market investment opportunities? Follow Netcapital onTwitter, LinkedIn, Facebook, and Instagram.
Crunchbase News published a commentary by Jason Frishman praising the SEC proposal to raise the annual cap on funds raised under Reg CF to $5 million, from the current $1.07 million
The objective of KYC guidelines is to prevent businesses from being used by criminal elements for money laundering. Related procedures also enable businesses to better understand their customers and their financial dealings. This helps them manage their risks in a well-judged manner. Today, KYC principles apply to banks as well as different online businesses.
Pursuant to the USA Patriot Act of 2001, the Secretary of the Treasury was required to finalize regulations before October 26, 2002 making KYC mandatory for all US banks.
The know your customer or know your client (KYC) guidelines in financial services require that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. The procedures fit within the broader scope of a bank's Anti-Money Laundering (AML) policy. KYC processes are also employed by companies of all sizes for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant, and are actually who they claim to be. Banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. Initially, these regulations were imposed only on the financial institutions but now the non-financial industry, fintech, virtual assets dealers, and even the non-profit organizations are liable to oblige.
On May 4th, the SEC announced that it is providing temporary, conditional relief for established smaller companies affected by COVID-19 that may look to meet their urgent funding needs through a Regulation Crowdfunding offering.
In addition to meeting the other eligibility requirements to make an offering under Regulation Crowdfunding, your company cannot have been organized and cannot have been operating less than six months prior to the commencement of the offering; and if your company has sold securities in a Regulation Crowdfunding offering in the past, it must have complied with the requirements in section 4A(b) of the Securities Act and the related rules.
If your company is eligible, these amendments will let you:
These actions by the SEC will expedite the offering process for eligible companies by providing relief from certain rules with respect to the timing of a company's offering and the financial statements required. To take advantage of the temporary rules, a company must meet enhanced eligibility requirements and provide clear, prominent disclosure to investors about its reliance on the relief. The relief will apply to offerings launched between the effective date of the temporary rules and Aug. 31, 2020.
The temporary rules provide flexibility for issuers that meet certain eligibility criteria to assess interest in a Regulation Crowdfunding offering prior to preparation of full offering materials, and then once launched, to close such an offering and have access to funds sooner than would be possible in the absence of the temporary relief. The temporary rules also provide an exemption from certain financial statement review requirements for issuers offering more than $107,000 but not more than $250,000 in securities in reliance on Regulation Crowdfunding within a 12-month period.
"In the current environment, many established small businesses are facing challenges accessing urgently needed capital in a timely and cost-effective manner," said SEC Chairman Jay Clayton.
The table below summarizes the flexibility for issuers to make greater use of Regulation Crowdfunding to meet their fundraising goals during this period.
Netcapital is here to assist you during this difficult and uncertain time and help you realize your capital raising needs. Please contact us at team@netcapital.com and one of our business development teammates will promptly respond to your inquiries. Thank you.
The following table summarizes the current rules and what’s changed with these temporary amendments:
| Requirement | Existing Regulation Crowdfunding | Temporary Amendment |
|---|---|---|
| Eligibility | The exemption is not available to:
| To rely on the temporary rules, issuers must meet the existing eligibility criteria PLUS:
|
| Offers Permitted | After filing of offering statement (including financial statements) | After filing of offering statement, but financial statements may be initially omitted (if not otherwise available) |
| Investment Commitments Accepted | After filing of offering statement (including financial statements) | After filing of offering statement that includes financial statements or amended offering statement that includes financial statements |
| Financial statements required when issuer is offering more than $107,000 and not more than $250,000 in a 12-month period | Financial statements of the issuer reviewed by a public accountant that is independent of the issuer | Financial statements of the issuer and certain information from the issuer’s Federal income tax returns, both certified by the principal executive officer |
| Sales permitted | After the information in an offering statement is publicly available for at least 21 days | As soon as an issuer has received binding investment commitments covering the target offering amount (note: commitments are not binding until 48 hours after they are given) |
| Early closing permitted | Once target amount is reached if:
| As soon as binding commitments are received reaching target amount if:
|
| Cancellations of investment commitments permitted | For any reason until 48 hours prior to the deadline identified in the issuer’s offering materials. Thereafter, an investor is not able to cancel any investment commitments made within the final 48 hours of the offering (except in the event of a material change to the offering). | For any reason for 48 hours from the time of the investor’s investment commitment (or such later period as the issuer may designate). After such 48 hour period, an investment commitment may not be cancelled unless there is a material change to the offering. |
Jason Frishman makes the case that, with public markets in turmoil over the Covid-19 virus, investors should consider the opportunity to invest in private market securities to build wealth over the long term.
There’s a remarkable new trend in toys—the increasing popularity of toddler learning toys. The smart toy industry is booming. Displacing traditional console-based toys, smart toys are expected to grow by 69% annually over the next five years. Why this growth-spurt? In-app purchases, which are tied to the growing popularity of smartphone-connected toys.
Thinker-Tinker’s interactive products transform mindless screen time into active playtime. We are bringing multi-platform EDU-tainment experiences to families. We are a company built around interactive learning experiences. Our flagship product, Octobo, is an award-winning educational multi-sensory smart plush robot that enables development in an interactive environment.
Led by Yuting Su, we specialize in a new pattern of play. Following her two Masters and the birth of her son, she focused her background in technology and interactive media towards toddler educational toys. With our plush robot, our company has been selected as a Techcrunch Top Pick, and finalist for Last Gadget Standing at CES and SXSW Innovation Awards. We are also working on an interactive music game for kids with Universal DreamWorks!
The best developmental activities your child can learn are through play. Play is crucial to a healthy brain development. Studies show that some of the best brain and body boosting activities for toddlers are gross-motor skills, fine-motor skills, social, sensory, and music. According to Romper, Octobo combines all of the technology and interaction of a tech toy with the comforting softness of a stuffed animal and can work for any kid in the family with activities for varying developmental stages.
Bracelin, editor of the Las Vegas Review-Journal, discussed Octobo’s interactivity.
“Our kids are going to be on screens a lot, so how do we make that learning and how to make that something more active than just watching Youtube. Octobo is interesting in how it is a single toy that operates on many different levels.”
We invite you to join us in creating the future of kids tech beyond Octobo. The world is getting smarter and so should play. Join the team at the forefront of innovative creations!
Hey Everyone,
This is John Fanning Jr, CEO of Zelgor Inc. I’ve received a lot of great questions and wanted to answer some of the most frequently asked about our Universe.
What is the market opportunity for mobile games?
The mobile games industry makes up $86.5B of the $150B+ global games market. One successful game can drive a company to multi-billion dollar valuations. We’ve already seen it with companies like Supercell (Clash of Clans) and King.com (Candy Crush). Games like Pokémon GO have generated as much as $2.5M in revenue in a single day.
How will Zelgor make money?
Our games are free to play, while users can pay for virtual items like costumes and spaceships for their Noobs. Fortnite has been quite successful using this method, bringing in as much as $2.4B in one year. We also plan to leverage in-game sponsorships, creative ads, and merchandising.
What does your partnership with Disruptor Beam mean for Zelgor?
Disruptor Beam is best known for taking media franchises like Star Trek and Game of Thrones and turning them into highly successful mobile games. As one of the first companies to partner with Disruptor Beam, we'll be using their engine to develop Noobs in Space quickly in a way that is both efficient and scalable.
When will Noobs in Space be available in the App Store?
We have planned for 4-5 months of development time after our offering closes, leading to a launch in test markets. We began ramping up development in March, and for those who want to play right away, sign up to be a tester on our website zelgor.com.
If you want to help the Noobs take over the Universe, invest today at netapital.com/companies/zelgor.
Crunchbase News published an article by Netcapital CEO Jason Frishman outlining why "it's time for capital raising to enter the digital era".
Crowdfund Insider reports on KingsCrowd’s capital raise and quotes Jason Frishman on the importance of research tools for private market investors.
We know how small business works, we know that there is pain there, and we know that other companies are not serving their needs.
An investor once asked: “why is Raveler targeting small businesses, rather than large corporate chains who can spend more money on software?” It’s a valid question- the food business is hard, and large corporations have more money to throw at the operational issues that bog them down. However, we are committed to serving smaller businesses because it is a cornerstone of our central business thesis.
The small food business is what we know best. Our unfair advantage as a company is the fact that both co-founders have spent over a decade in the trenches of small food business. We know how to talk to people about their operations, we know the right questions to ask, and we know how to solve their problems. In short, we can sell to small businesses.
There is a lot of complexity in the food business, and it’s hard to manage. Inventory of perishable materials, FDA compliance, and production scheduling take up a lot of time. Currently, best practice is to use sticky notes and spreadsheets. Although there are plenty of lightweight solutions for POS, Ecommerce, and bookkeeping, operations/manufacturing software is where credit card processing was before Stripe, and where web design was before Squarespace.
Our platform connects the dots and increases efficiency. One customer reports that Raveler saves them eight hours a week, which has increased their production capacity by 50% without adding more staff. It is amazing how much more can get done every day when you’re not constantly chasing papers. That efficiency means all the more to small businesses, which are always strapped for time.
Because everyone else is thinking about big chains, there is a $40Billion market that has yet to be addressed. We have the best team to bring that solution to market, and we are honored and excited to do so.
Featuring a freemium revenue model, BitMovio is a blockchain-enabled, gamified video entertainment platform built for the Fortnite generation.
To help achieve its mission to democratize the entertainment content distribution and financing model, BitMovio, Inc. is raising growth capital through an offering launching today on Netcapital.
"Beyond subscription (SVOD) and advertising-supported (AVOD) video streaming services, we believe a 3rd lane will emerge - Freemium Video Streaming. This will be a massive opportunity - perhaps even larger than SVOD and AVOD combined - to introduce proven, highly-profitable gamification techniques of the kind perfected by Epic Games in Fortnite into video streaming," said Jerry Kowal, Chief Content Officer and Cofounder of BitMovio.
Netcapital CEO Jason Frishman sat down with Robert Powell of TheStreet.com to discuss how retirement investors can invest in private companies. Mr. Frishman discusses the Regulation Crowdfunding offerings that are performed by Netcapital Funding Portal Inc. and the secondary transfer feature that is provided by Netcapital Systems LLC. Watch the video or listen to the podcast below.
Boston Globe: Netcapital CEO Jason Frishman and the company are featured in an article by tech columnist Scott Kirsner on the growing business of investment portals such as Netcapital raising capital to fund startup companies.
We are pleased to announce that Netcapital is partnering with MassChallenge, a global network of startup accelerators, to offer a discount on our capital raising services to current and alumni companies in the MassChallenge Boston program.
MassChallenge Boston supports early-stage startups across all industries through a four-month accelerator program. One hundred companies are currently participating in its Boston Accelerator program.
Boston is a global leader in innovation, and we are excited to partner with a premier accelerator in MassChallenge to help foster that innovation. The technology on our platform should prove very valuable to these startups as they seek alternative routes to financing.
As an in-kind partner, we will offer discounted services to all of the companies actively participating in the MassChallenge program, as well as over 2,300 MassChallenge alumni startups worldwide, that elect to use our platform to raise capital from investors. MassChallenge operates programs in Boston, Rhode Island, Texas, Israel, Switzerland, and Mexico.
Entrepreneurs interested in learning more about Netcapital should contact us at hello@netcapital.com.
Crowdfund Insider: Specialty metals manufacturer Braidy Industries raises $2.5 million on the Netcapital platform, broadening its investor base among main street investors in its home state of Kentucky.
Financial Advisor magazine: Netcapital CEO Jason Frishman writes guest expert commentary piece on the opportunity for investors and their advisors to take advantage of early stage growth opportunities in the private markets through investment portals such as Netcapital.
Yahoo Finance TV: Netcapital CEO Jason Frishman is featured guest on Start-up Spotlight, a panel discussion segment, addressing the opportunities in private market investing.
Crowdfund Insider: Phoenix PharmaLabs successfully completes $1.1 million equity capital raise on Netcapital platform to help fund its non-addictive opioid treatment for pain.
Business Wire: Advanced Aesthetic Technologies, the leader in aesthetic gel implant technology for facial cosmetic surgery, is poised to enter U.S. market after successful launches in 33 countries in Europe, Asia, Middle East and South America.
New England Cable News: Netcapital CEO Jason Frishman, and Virzoom CEO Eric Janszen, who raised capital for his company on Netcapital, appear on This Week in Business to discuss the capital raising process for startup companies.
PR Newswire: Netcapital announces the formation of a strategic partnership with Techstars, the worldwide accelerator network that helps entrepreneurs succeed.
CNBC: Netcapital CEO Jason Frishman is featured on Mad Money with Jim Cramer, discussing the opportunity for investors to gain access to startup companies through portals such as Netcapital.
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