Mainvest is an investment platform that allows everyday people to invest in local businesses. Previously, investing in companies before they go public was typically only open to wealthy, private investors. Mainvest is changing that by opening up this type of alternative investment to ordinary investors.
Through Mainvest, you can invest in brick-and-mortar companies in your community for as little as $100. The platform offers the opportunity to support local businesses while diversifying your investment portfolio. Advertised returns range from 8 to 10 percent annually.
The low minimum investment and potential for attractive returns make local investing accessible to nearly anyone. But does Mainvest top the charts of the best alternative investment platform? Here is a Mainvest review to determine that.
How Does Mainvest Work?
To get started with Mainvest, you first need to create an account. It’s free to join, and you only need basic info like your name, address, and a U.S. bank account. Once you’re signed up, you can browse the wide range of investments and invest in businesses that interest you, starting at just $100 per deal.
Mainvest makes money by charging the businesses a percentage of the total funds raised. This allows them to offer the platform to investors for free. As an investor, you have two options: debt or equity. Debt, like a loan, provides regular interest payments.
When it comes to fees, Mainvest keeps things simple for investors. No fees are charged to investors when they create an account with Mainvest. Other fees absent from this platform include administration and management fees. The only rule is that you need at least $100 to invest.
Instead, 6% of the money businesses raise must be paid to Mainvest by the business owners. This means the companies doing the fundraising on Mainvest’s platform pay Mainvest, not the investors. For investors, this is a major perk.
How to Start Investing with Mainvest
To get started, head to Mainvest.com and create your free account. You’ll need to provide basic personal information like your name, email address, and physical address. Verifying Your Identity Individual investors interested in using Mainvest to achieve their investment goals won’t have to jump through any hoops.
Once your account is set up, you can view current investment opportunities. Mainvest works with small businesses in your community to crowdfund things like commercial real estate investments, equipment financing, and working capital.
Browse the listings to find a business in your area that matches your interests or values. Each offer will explain the key details about the raise, the business, and your potential return. Research the company and its leadership to ensure it seems like a solid investment.
When you find an opportunity you want to support, you simply fund your investment through Mainvest. The investment minimum starts from as little as $100. Mainvest handles all the legal paperwork and transactions.
Selecting an Investment
Before making your initial investment into any business, thoroughly research all options available on the Mainvest platform. While Mainvest does conduct background checks on companies, you should still do your due diligence.
Review each business’s “Investment Opportunity” section, which outlines key details like the company description, use of investment funds, deal terms, and financials. Check out their “Data Room” for important documents like pitch decks, financial statements, business plans, etc. Read through company “Updates” and join the “Discussion” section to get insights from other potential investors.
If you’re looking for alternative tangible assets or ways to invest your money, Mainvest is an intriguing option. They offer two main investment types: equity investments and revenue-sharing notes.
Equity investments tie your rate of return directly to a business’s performance. If the company does well, the value of your investment can increase significantly. However, if the business struggles, you could lose some or all of your investment. Private equity investments tend to have higher risk levels and potentially higher rewards. They may require a long-term commitment to realize good to average returns.
Revenue-sharing notes are more like normal loans. You lend money to a business, and they pay you back your original investment amount plus interest. The business pays you a percentage of its revenue over time until the total repayment amount is reached. These notes tend to have lower risk tolerance since you’re guaranteed to get your money back plus interest.
Is Mainvest the Best Alternative Investment Platform?
As an alternative investment platform, Mainvest appeals to those looking outside traditional investments like the stock market or hedge fund. Their mission to help small businesses by connecting them with individual investors is admirable. However, Mainvest may not be the best option for investors, especially if you’re just starting with alternative investments.
To their credit, Mainvest provides educational resources and tools to help institutional investors evaluate investment opportunities. They aim to teach everyday investors how to properly assess risk factors and do due diligence.
Regardless of your investment skills and prowess, always do your due diligence. Conduct indepth research to understand the risk factors fully. To check out Mainvest, click here. Start your passive income journey today.