Getting Started in Crowdfunding Investing

[Note: I am not an owner or employee of any of these firms, and no one asked me to do this.  I am providing this solely as information based on my recent personal experience using the Platforms]

For a bit over a year, federal law has permitted just about any John or Jane Doe to invest in Business Start-ups or expansions, an activity usually reserved for the wealthy or "accredited investors."  Today, often in increments as low as $100 to $500, individuals can get in on the ground floor of a new venture.  These investments may take the form of actual stock equity (which can not be easily traded or sold, and are not listed on a stock market); convertible notes (loans which convert to equity, or stock, if certain conditions are met); and revenue sharing, which acts as a loan paid back not over a specific time period, but as a function of the revenue received by the company.  The goal on these revenue sharing agreements is to pay back the investor anywhere from 1.2 times to 2.0 times their investment (although I have seen one shooting for 3x investment).

And of course, like any company, all investment is at risk and you could lose everything.  No one, of course, is hoping for that, but it is a possibility.

All of the platforms below are simply web-based platforms designed to 'match' potential investors with companies seeking to raise funds.  Once the investment is completed, the investor deals directly with the company they have invested in and the platform has no further intermediatory role between you.

Each Platform, with small exceptions, is structured, visually, in a fairly uniform format, so getting familiar with one makes the next one easier.  In no particular order, the five that I have found easiest to use are these:

1.  START ENGINE - This is the largest of the five I am including. s of this date, 68 active companies are listed, representing a broad variety of industries. They provide an excellent, clear tracking of the status of your investments during the process, and are active in sending emails announcing news and updates. If you need to cancel an investment, they are efficient and no-hassle. Each company has a very visible "Terms" button which explains clearly what kind of investment is being offered, with some minor exceptions. Unlike many platforms, they actually permit the use of credit cards (Use with Caution!) to make investments.

2. NEXTSEED - Next Seed is small (7 active companies), with a heavy emphasis on "mega-bars" and drinking/entertainment venues.  Of all the platforms, it provides the *clearest* indication as to the 'terms of the deal' and the hoped-for returns. The Chat function with the platform is efficient and helpful.

3. WEFUNDER - Another large platform, there are 45 companies currently raising funds. There are an excellent set of FAQs for new investors that should be read thoroughly. The site features many tabs to search for precisely the type of company you wish to invest in (tech, main street, software). On the down side, the terms of each deal are not big and bold: they are printed in fine type at the bottom of each company's icons in just a word or two. By clicking on a company icon, you can see the terms in more detail.

4. MICROVENTURES This is actually a partnership (not entirely explained) using First Democracy FV as a bridge between Microventures and Indiegogo, a respected company which adds some credence to the viability of the fundraising companies; there are 7 companies currently listed.  Some of the companies have very clear terms of the deal, while others take a little more digging.

5. FUNDANNA - Whereas many crowdsourcing platforms steer away from start-ups involved in the cannabis industry, Fundanna focuses on such companies. The 6 companies listed have *very clear* terms, and have done a good job explaining their business plans and approach to their businesses, with extensive information for the investor. One gets the impression that Fundanna is a small operation: the website has a few glitches, and is not entirely intuitive, and the chat function is not always on...but when responding to email, it is clear that they are giving highly personal responses rather than pat answers. One nice touch is that they actually accept old-fashioned checks in addition to bank withdrawals for payment. 

I have used all five of these of that platforms, and will continue to do so as I seek to diversify my investments, which currently include a race horse, a vertical farming operation, an organic dairy, a cannabis growing facility, a boxing club, a Brazilian liquor company, and a sports bar.

In addition, some states have set up Non-profit platforms (Such as MILKMONEY VT) to assist local in-state businesses, and which are often only open to in-state residents.

Happy Investing!  Be smart and be cautious, but know that you CAN get in on the ground floor of the "Next Big Thing!"

Gov. Scott - NO New Firearms Control in Vermont!

Dear Sen. Nitka,

I am a resident of Chester, and am writing to you regarding the proposals in the Senate regarding increased firearms regulation. I am extremely concerned for the ramifications of some of these proposals. PLEASE hear me out.

I am a retired teacher, who chose to move to Vermont - in spite of the financial burden on retirees compared to other states - precisely because of the life style here.  I am a fairly liberal gay man who, more than once, has found myself a target on the streets of New York and elsewhere.  To protect myself, I carry a firearm, because I am my own best line of defense when these incidents occur.

I used to live in Massachusetts.  In spite of currently being in the US Coast Guard Auxiliary out of Station Burlington, with Homeland Security Clearance, having NO criminal record of any kind, and having been fingerprinted with the FBI no fewer than 11 times (for Coast Guard work and during the adoption of 6 children and foster care of three others) - the background check and license I requested there TOOK EIGHT MONTHS to process (even though the law there said 60 day maximum).  No one should have to wait that long to exercise a Constitutional right to protect themselves!  The background check there was a total disaster. I moved to Vermont for several reasons, but paramount was the fact that it is the safest state in the union, and I don't have to beg for permission to exercise my right to self defense.

In a vacuum, Universal Background Checks seem to make sense, to weed out those with criminal records and mental health issues, and that seems to be driving this initiative, but there are terrible unintended consequences:

1) The majority of people with criminal records are non-violent offenders, most for drug offenses, and many with marijuana convictions - ironic, considering we have just legalized marijuana in Vermont!  A background check will not only flag these people, but will disproportionately affect minorities who are caught up in this system (and yes, I have an inter-racial family).  Progressives are appropriately trying to seal these types of convictions so that non-violent offenders can be re-integrated into society and get jobs - and yet this throws that entire effort into chaos.

2) As a teacher, I worked frequently with Veterans, many of whom return from overseas and are assisted with mental health counseling for PTSD.  These are men and women who know how to safely use firearms better than most - and yet, they are precisely the ones who will be caught up in mental health check.  Are we now going to require that physicians and counselors report the details of privileged patient-client information to a government database?

Similarly, the effort to raise the age for purchase to 21 is an insult to the people who we consider old enough to vote for you at age 18.  At 18, they can join the military and carry military-grade automatics, and they can be trusted as armed police officers in our Towns...but they would not be able to purchase a hunting firearm in a state with a long, proud history of hunting?!

I realize that in the wake of the tragedy in Florida, people are emotional and looking for "government to do something;"  and yet, this is precisely the time when legislators make poor choices.  The 'crisis of the moment" lead to the internment of Japanese-Americans in WWII, and it lead to the Patriot Act and FISA courts - both examples of terrible losses of Constitutional Rights as a result of an emotional reaction to tragedy.

I am asking you to OPPOSE any effort to restrict the firearms laws here in Vermont.

Thank you,

Thomas T Simmons

The Investment Series....

Many years ago, when I first began teaching, I made a decision that most of my fellow teachers did not understand: I opted out of the state Retirement System.  I gave up a guaranteed pension for life after 20+ years of service.  Instead, I chose an Optional Retirement plan, whereby I invested and controlled my own contributions.  Now that I've "retired," that decision is paying off.


Now, rather than waiting for a monthly check from the state, I have taken my stash of cash with me, to use as I see fit. And having spent the last 20 years teaching Economics & Business, and working with young entrepreneurs seeking to start their own businesses through the Grinspoon Entrepreneurship Initiative, I am now entering a new phase of "work:"  using my accumulated retirement funds to invest directly in new and growing businesses. 

We're not talking stocks here: we're taking making loans and buying equity in small family businesses that are not traded on the markets. It is probably one of the most exciting and rewarding things I have ever done.

After planning for this for the past year, I have eight deals in various stages of closing.  And so today, I reveal my first investment:

Green Mountain Organic Creamery is a 20,000 sq/ft dairy processing plant located in Hinesburg, Vermont. GMOC was founded by Cheryl and John “JD” Devos, organic dairy farmers from Addison County, Vermont. Cheryl and JD own and operate the 200 cow, Kimball Brook Farm, which is capable of producing 3,400,000 pounds of milk per year. GMOC purchases its organic milk primarily from the Farm at fair market value prices and then produces and distributes certified organic, Vermont milk and value-added milk products (flavored milk, cheese, butter, etc.) throughout Vermont, New England, and New York.