How to Start Investing in Small Businesses
Did you know that you can start investing in small businesses today? Up until a few years ago, this wasn’t an option for most people, but the JOBS Act of 2017 made it so unaccredited investors (those who don’t have a net worth of over $1 million or annual income greater than $200,000) can invest through crowdfunding.
So, if you’re on this blog post, you’re probably interested in getting started investing in small businesses, but maybe you’re not sure where to start. Well, it’s really as simple as creating an investor account with us and checking out live campaigns funding now, but here are a few more pointers to get you started.
*Disclaimer: this is not investment advice and should be used for educational purposes only. Investing is inherently risky and investors should be able to lose some or all of their investment.
It’s crowdfunding, but you get more than just a thank-you note back
You may have participated in rewards crowdfunding before if you’ve ever contributed to a Kickstarter campaign or something similar. Maybe you donated enough to get a t-shirt - good for you! However, what if you could support a small growing business and get that money back, plus interest? That’s what you do when you invest in a loan crowdfunding campaign. It’s essentially the same process as putting money into a Kickstarter, except over the loan’s terms you’ll receive quarterly repayments until you get your money back, and more.
Find a business close to you … or across the country!
On Honeycomb, we have businesses across the country in 22 states that have funded their growth. You can find a business right down the street from you or in a totally different state, but you can be assured that your investment is helping someone grow their business and make an impact on their community.
Choose an investment that makes an impact
If you’re looking into investing in a small business, it’s likely that in addition to wanting to make a smart money move, you also want to make a difference in your community. Whether you want to invest in a green, sustainable business, or you want to support minority-owned businesses, you can find an opportunity to do so.
The cool thing about investing in local businesses is that most of them wear their heart on their sleeve, and you can see the causes that are important to them, and if your values align with theirs, that’ll make your investment all the more meaningful.
Take it for a test run
To see how easy it is to invest in a Honeycomb campaign, take this demo for a spin and “invest” in Pittsburgh pizzeria Driftwood Oven!