My Journey with Equity Crowdfunding: I'm a Cool Kid, Y'all!
Learn how to invest in a startup without being accredited, without living in San Francisco, and without a warm introduction.
I became an investor in my very first company!
(Photo by Anna Shvets from Pexels)
I learned about Flower Turbines from my husband while he was researching sustainable companies in the Netherlands.
Windmills often have to be large and require a lot of space. As a result, they’re quite disruptive, and many people don’t want to live near them. But in many places, wind is significantly more reliable than sunshine.
So, to encourage the transition to renewable energy, Dr. Daniel Farb and his team designed a unique type of windmill. I know, it seems like a classic Dutch thing to do, but the company actually started in Israel and now has stateside offices in New York.
With the compact yet efficient wind turbine, more people and businesses can harness the power of wind for their energy consumption – a great alternative for solar panels!
Anyway, that’s all to say that I DID IT. I invested in my first startup!
And it was painless…mostly.
Step-by-Step Explanation of Becoming an Equity Crowdfund Investor
I’ll admit: I attempted to invest in them a few times before I successfully completed the transaction. I want to tell you about my process so that you can do it better and with confidence!
First, Flower Turbines is so popular that there was a wait list. But in order to join the wait list, I had to provide a stateside number. And because I live abroad, I don’t have a phone number. (But I file U.S. federal taxes, that’s for damn sure.) Here’s what the wait list screen currently looks like:
To work around the phone number issue, I created a profile with StartEngine and set up alerts for the company. And then I just waited for them to release more unclaimed shares.
And sure enough, they did. So I logged on, entered my billing address and my bank account information, but they also ask for my net worth.
That’s not a number I regularly keep on hand.
Not that it’s very large, but I was afraid to guesstimate. I’m making my first investment, after all!
For your reference, your net worth is the total dollar value of all your (significant) things. For me, all I really have are my bank account balances. I don’t own a car (RIP Blueberry), a house, a boat, or anything else.
Once I filled out all the information, it took 28 days for the money to be withdrawn from my account. And it took another 16 days to receive confirmation of my investment.
Takeaway: if you’re interested in investing in a company on a crowdfunding site, here’s what you need:
Proof of residency: companies may only accept investments from specific countries.
Bank account information: have your account number and routing number on hand, and make sure you have sufficient funds over the next 40 or so days.
Net worth: On reflection, I actually can’t remember if that was required when I finally clicked “submit.” But if you’re like me, it shouldn’t take too long to calculate!
This was just my personal experience with StartEngine. If you’ve used Republic or FundBLACKfounders, let me know in the comments!
Why Flower Turbines?
Now I own shares in (of?) Flower Turbines! According to the terms, I can’t sell the shares for at least 1 year.
But I don’t really plan on it.
I intend to sit on my shares for a while because I believe that Flower Turbines will be really successful in the coming years. Green energy has been on a slow ascent these past 40 years, but in light of COVID, the industry is about to sky rocket.
I want to see Flower Turbines lead the way in retail wind energy. I’m happy to give them money because I believe in the work they’re doing. And I strongly believe that we can’t achieve a greener future unless everyone – you, me, and your mom – makes a financial investment in at least one green energy initiative of your choice.
(At some point I’ll tell you about tokenization, but let’s get comfortable with each other first.)
And that’s what is so powerful about equity crowdfunding. If you find a startup that aligns with your beliefs, you can give them the boost they need in this incredibly competitive landscape.
Things I Found Informative and Interesting
Oh, BIG news: the SEC raised the maximum amount a startup can raise from $1.07 million to $5 million
Have some time? Breakinto.vc is a short, ultimate guide to becoming a VC investor
For those who aren’t based in the U.S. but want to contribute to equity crowdfunds, check out LeapFunder
The Cru, a structured accountability/mentorship/network program for women, raised $2 million in their series A
Final Thoughts
I definitely felt a rush of excitement when I saw the investment confirmation in my inbox. I felt like a million dollars. Actually, I felt like I had a million dollars and just made a wise investment decision.
But honestly, I’m not even thinking about the returns. I’m just beyond thrilled to make a meaningful contribution to a future where Flower Turbines are affordable, accessible, and reducing humanity’s impact on the planet.
I invested in Flower Turbines simply because I believe in their mission to make wind power more accessible. Who will you invest in?
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Oh, and I couldn’t possibly forget my nerdy surprise for you: a spreadsheet of startups that I follow!
(I told you it was nerdy.)
It’s a work in progress, but I wanted to share the information with you as soon as possible. It includes:
Industry
Funding round
Business description
Location
Website
Feel free to leave comments on the spreadsheet! I’d love to know what you think of the companies I’m following.
I also started a tab/spreadsheet of the VCs and investor platforms I recommend. There’s so much great information out there - I’m just aggregating it for you!
So was it as nerdy as you thought it would be? Do you know someone who would enjoy the nerdiness?
Disclaimer: this isn’t professional financial advice. Just my own experience. Talk to your accountant or financial advisor before making decisions if possible.
Correction: My brother Jonathan, in all his worldly wisdom, noticed I stated in an earlier version that the SEC raised the minimum amount, which…doesn’t make sense.