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Investing can be pretty intimidating to people who are new to it. Plus, there are barriers that you have to consider. It requires a certain amount to open an account; there are also fees and other charges you might not be aware of at first.
Luckily, the internet brings more platforms that you can use to start building your portfolio from a small amount of money. These platforms are less risky than trading on the market without any background.
Today we will be taking a look at one of these popular platforms- SeedInvest. Is it legit and worth your time? We will be answering these questions below, so be sure to stick around if you are interested in learning more.
Let’s get started with our SeedInvest Review.
What is SeedInvest?
SeedInvest is a regulated broker-dealer and a leading crowdfunded platform. They say they provide investors with access to “pre-vetted startup investment opportunities,” which means the people at SeedInvest have carefully done their due diligence on these startups.
Crowdfunding is when a new business venture uses a small number of funds from many different people to get their idea financed and on the market. This platform’s goal is to make startup investing easier for everyone. You can feel good knowing that you are helping someone fund their dream, plus you are going to potentially make money doing it.
SeedInvest allows investors to invest a minimum amount of $500. While that might still sound like quite a lot, other startup investment platforms require that you put in 50 times more than that. The SeedInvest site says this allows you to diversify your portfolio further.
SeedInvest Eligibility Requirements
The eligibility requirements are similar to those on other investment platforms. You will need to be at least 18 years of age and a United States citizen to participate in crowdfunding through SeedInvest.
When you sign up for an account, the platform will also want to know if you are an Accredited Investor or a Non-Accredited Investor. The good news is that you do not need to be an Accredited Investor to make investments through this platform.
You will also need to have a payment method to link to your account over the internet.
Other than that, you do not need a lot to start investing. Just keep in mind that investing in startups is usually seen as risky. However, the businesses listed on this platform have been heavily scrutinized by staff.
How Does SeedInvest Work?
Like other investing platforms, getting set up is easy. All you need to do to create your account is to follow the prompts on the screen. Once you have set up your account and linked your payment information, you can start checking out the startups.
All of the business startups on this platform have been checked out by SeedInvest employees, who have only allowed 1% of the applicants to pass through their vetting system. The staff only allows the most likely to succeed businesses on their platform.
SeedInvest is designed to connect investors and startups. Since they launched in 2013, they have allowed investors to build their portfolios and invest over $200 million in startup groups.
You will want to browse through the options the platform offers, and carefully consider what you think would be the best choice. Remember, you need to invest a minimum of $500, so you will want to do your research. The website states that machine and technology startups are the most viable businesses to be successful.
However, you will want to keep in mind that this is not a Robo-advisor platform like other options you can find on the internet. SeedInvest does not automatically manage your invested money. You will want to choose which startups look the best for you. Still, the platform has vetted all of the business ventures that come to them.
The site is full of useful information and can give you more insight into how the process works. They mention that it can take five to seven years to start seeing a return on your investment and that the startup game can be risky. Many people have had success with this platform, and many people have had their dreams funded.
SeedInvest Pricing & Fees
It will cost you to use this service. SeedInvest charges a 2% non-refundable processing fee, which can go up to $300 at most. You will be charged depending on the amount that is invested in a startup. So, while $500 is the minimum investment amount, you will need additional funds to cover that fee.
If the business venture does not reach its fundraising goal, your money will be refunded.
Currently, on Trustpilot, SeedInvest has a rating of 2.8 out of 5 stars. The site states that this is average, although only three people have left reviews. The written reviews do say that you should try another platform, however.
The Better Business Bureau does not track this platform, so we could not find a rating for them.
Pros & Cons
Here are some of the key pros and cons of SeedInvest that you might want to consider:
- Ease of Use. Your account is easy to set up, so you can get started investing right away. The website is also easy to use and self-explanatory.
- Allows Non-Accredited Investors. This site enables Non-Accredited Investors to make investments in startups and is one of the first platforms offering this service. This makes investing more accessible to a broader group of people.
- Connects You With Business Ventures. It can be tough to find startups searching for investors on your own, but SeedInvest can make those connections for you.
- Their Minimum is Expensive. Investing in startups is pricey, no matter what platform you choose. The minimum amount is still very high.
- Not the Best Customer Service. During our research, we found that customers had issues with unresponsive customer service. Many wrote about the experience online.
SeedInvest Alternatives & Competitors
There are other companies like SeedInvest that you may also consider:
These platforms are similar to SeedInvest in many ways. They all offer crowdfunding startup investments as well. If you are interested but unsure about SeedInvest, you should check out some of these alternatives.
Parting Thoughts: SeedInvest Review
The SeedInvest platform is easy to use and requires a lower startup investment amount than other groups. It gives you access to plenty of business ventures that you would not be able to find otherwise.
We recommend that you do more research if you are interested. Startup investment comes with risks, although the risk is lessened when using SeedInvest since they research their offered ventures thoroughly.
Browse The SeedInvest Site
Is SeedInvest the right platform for your needs?
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