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Category Archives for Crowdinvesting 101

Crowdfunding Intermediaries – Funding Portals vs. Broker-Dealers

There are two types of equity crowdfunding intermediaries – they are called funding portals and broker-dealers. Find out what the key differences are and why investors should know the difference between the two entities.

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Crowdfund Investing vs. Angel Investing – 5 Ways They Differ

Equity crowdfunding is sometimes referred to as “micro-angel investing.” While it may have a lot in common with angel investing, there are also many differences for the crowdfund investor to be aware of.

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Key Differences of Rewards vs. Equity vs. Debt Crowdfunding

Equity, debt, rewards, or donation-based crowdfunding are all different ways to raise money from the crowd. Learn the differences between each type of crowdfunding.

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LLC vs C Corporation Investments – Tax Implications of Business Type

A very important but often overlooked aspect of investing in the private markets is how the type of business – LLC vs. C Corporation – can impact taxes. We discuss some of the tax considerations that investors should be aware of when investing in each business entity.

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IRR vs Exit Multiple Calculators

IRR and Exit Math in Reg CF Investing

Internal Rate of Return (IRR) and Exit (or Return) Multiples are key elements when starting out in equity crowdfunding. Learn what they are, why they are important, and how to calculate them.

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Risks of Equity Crowdfund Investing – Part 2

As an asset class, equity crowdfunding offers new investment opportunities, but it also comes with new risks. Learn about the seven types of risk specific to the Reg CF asset class.

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Risks of Equity Crowdfund Investing – Part 1

In Part 1 of understanding risks in equity crowdfund investing, we will learn about risk-reward tradeoffs and dive into the human psychology that impacts our investment decisions.

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hourglass equity crowdfund screening time

How Much Time to Spend on Due Diligence

Today, we look to provide some perspective on the question “how much time should I spend on due diligence for equity crowdfunding?” We analyze historical data from Angels and VCs, and pose questions that every investor should ask.

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Monte Carlo Analysis of WeFunder Results – Q4-2018

Interested in some actual analysis of real equity crowdfunding data to date? We constructed a Monte Carlo Simulation to run over 140,000 investment scenarios based on the Q4-2018 WeFunder Reg D results. We’ll dive into the results and potential implications in terms of portfolio size and expected returns in today’s post.

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What Financial Returns to Expect from Equity Crowdfunding

With the high risk of failure in equity crowdfunding, what are the returns that investors can expect? We will use historical data from Angels and VCs and current results to start to assess potential investment returns.

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