Best Startup Investing Platforms
The best websites to invest in startups below each have their own unique approach to investing and connecting startups with resources. Read carefully through each one to determine the right match for your specific interests and investments.
By raising over $100 million for over 150 startup companies, SeedInvest has made a name for itself in the startup investing community. They offer a wide variety of investment opportunities for accredited and non-accredited investors alike.
The platform has over 250,000 investors in its network, but they have a rigorous application process, so people don’t invest in startups that are undeserving.
Only 1% of applicants are actually accepted, and startups must have at least two full-time team members.
SeedInvest does have a preference for tech-based companies or consumer-focused companies.
StartEngine provides a design team that helps startups secure investments and gives entrepreneurs their own manager account and drag-and-drop tools.
All startups do need to be based in the US, so it's a great chance to find an American company to invest in.
There aren't any listing fees either, so it's a more popular spot to invest in startups because they don’t have to pay high costs.
An equity-based platform, OurCrowd helps invest in startups by working with global entrepreneurs.
They have a very simple five-step process for startups to follow:
- The first step is getting screened by the company and accepted by meeting the immediate requirements.
- Then, startups meet with OurCrowd as part of the second step in the process to further define goals and strategies.
- Step three is where OurCrowd performs its due diligence and looks over the company to make sure all claims are legitimate.
- Startups will be presented before the investment committee in step four, where the committee will make its final decision.
- Step five is where investors can invest in startups and start creating relationships.
FundersClub fully invests in startups they accept even if there are only 2% of them accepted a year.
FundersClub prefers startups that have a massive upside and potential for growth. In return for using their platform, startups must forego a percentage of the profits they make from any funding.
Being accepted means startups get access to the founder community where other entrepreneurs can communicate about online and in-person events.
The FundersClub also has private team startups that have already gone through the trials and tribulations of founding a startup and selling it.
Indiegogo started in 2007 as a way for people to raise money for causes and has now become a platform to fund all types of projects, including startups.
Startups can launch a campaign on Indiegogo and receive funding from backers in return for rewards.
The more funds raised, the more resources Indiegogo offers to help promote the campaign.
Startups can get creative with the rewards they offer, but some popular ones include early access to the product, discounts, or custom experiences.
6. Investor Hunt
Investor Hunt is a little different from the other platforms on this list as it's geared more towards connecting startups with resources.
There is also a blog that offers helpful resources for startups and a forum where entrepreneurs can ask questions and get advice from others in the community. Startups can actually search the huge database before they even get accepted to see if the right type of investor is out there for their business.
Republic, an AngelList-owned company, takes the retention out of investing and lets everyday people pay as little as $10 to invest in a startup.
The general public is able to look for startups, so it isn't limited to angel investors or venture capitalists.
Once a startup hits the $3,000 mark, Republic will start to take a cut from the raised funds.
As one of the longest-running investment platforms online, Wefunder claims to have helped the most founders create successful businesses.
Wefunder is different from a lot of other platforms because they offer convertible notes, which means that the money invested can be turned into equity later on.
This is a great option for startups that might not be ready to give up equity yet but still need funding.
There are no upfront fees, but Wefunder does take a 7.5% cut after the deal has been made with an investor.
AngelList is one of the largest investment platforms online and has a global reach.
Investors are able to browse through startups, filter them by location or industry, and read reviews from other investors.
Startups create a profile on AngelList and can start raising money as soon as they're approved.
Frequently Asked Questions
Is it smart to invest in startups?
As long as you choose the right startup, it can be very profitable to fund a startup in exchange for equity in the company. Be sure to take the current market into consideration and do your research before committing any funds to a particular startup.
How do investors get paid back?
An investor will pay funds in exchange for a percentage of ownership in the company. Once the startup "exits," meaning it's either acquired by another company or goes public, the investor will cash out their shares.
How much money do you need to invest in startups?
Depending on the platform, you can invest as little as $10 into a startup.