Becoming an investor isn't as tricky as most individuals picture it, nor is it meant solely for high-profile individuals. If you're looking for a way to make profits at a high rate, then investing may be the smartest choice. You can choose from a variety of options if you're looking to invest.
Crowdfunding is an option with many investor categories and investment levels.
An individual seeking to make profits is considered a retail investor. Over the years, retail investors have been undermined because they contribute much less than industry giants. However, since 2020, the total equity of retail investors has seen a trajectory from 10%-15% to as high as 25%.
As of May 2022, retail investors have bought stocks worth $76 million. The new generation of retail investors is acquiring larger market holdings to become long-term investors.
This development isn't only good news for retail investors but also for startups seeking funding. Retail investors are beginning to contribute immensely to startups. Retail investors compete for world-leading startups with the potential to survive market constraints in the long term.
Here are a few startups that have collectively raised over $150 million from retail investors through crowdfunding:
Minimalists can finally own their much-desired home. Boxabl is a rapidly growing home construction startup. Its mission is to create affordable and sustainable buildings. It brought a home-in-a-box project to life. To reduce the time and cost that go into home construction, Boxabl prioritizes affordable home ownership with stress-free mass factory production.
With Boxabl, factory production is feasible both for residential and commercial buildings. It has begun shipping houses to different parts of the U.S. Its star product, the Casita module, folds up and down at the destination build site. Its homes take less than a day to unfold and assemble, similar to a Lego pack.
The startup began making waves when Tesla and SpaceX founder Elon Musk bought a Casita. Boxabl raised close to $70 million from retail investors. This figure excludes high-profile investors like Musk.
Rumors have it that Musk is testing the Boxabl home as a residential building for Mars. D.R. Horton Inc. made a considerable investment with an agreement to supply resources to back the startup while ordering 100 units of homes. It also completed a U.S government project recently.
Because of the rigorous processes involved in booking a private jet, Jet Token aims to change the narrative by better satisfying user needs. The demand for private jets increased by 20% since the pandemic. The startup uses blockchain technology to make bookings and flights seamless for passengers.
Jet Token inspires passengers to easily book aircraft with an accessible mobile app. The startup has over 5,000 investors with retail investors topping the charts. In its recent Reg A offering, it raised $4.7 million from retail investors. It also secured a partnership with HondaJet Elite. It hopes to surpass its benchmark by 2025 with the help of supportive retail investors.
TradeAlgo is another marketing startup making retail investors pump in their money. It creates products and provides information, data and tools to its users. It also offers SaaS software business models to help users invest. Prospective clients have access to a free demo on how to use its products.
TradeAlgo’s mission is to make trading and investing more accessible for underrepresented users. Retail investors can leverage this platform by accessing financial algorithms and statistics related to the market. Over 500 retail investors crowdfunded the initiative and raised more than $1 million in its first Reg CF.
Home rental services have existed for a long time, but sometimes their services are below standard. Clients end up with a liability rather than an investment. Rentberry is the first global tech rental platform to create a decentralized home rental system that allows clients to save more on rental deposits.
In previous years, the startup has raised $13 million from big names like Zing Capital, Google and Beechwood Ventures.
The company has raised over $11.3 million from retail investors through its current Reg A offering. Rentberry encourages patent technology in renting homes to prevent frustration.
Inclusion is the Name of the Game
Enough pieces make a whole, and so do retail investors in startup funding. Without retail investors, most startups may not receive as many funds as they should. Startups shouldn't depend only on dominant institutional investors because they may be challenging to secure.
Retail investors see the hope and potential inherent in a startup, which is why they choose to bear the risk involved. More startups are likely to consider crowdfunding for efficient and stable growth as this sector grows.