What is Mainvest?

Jeremy BiberdorfBy: Jeremy Biberdorf

April 18, 2023April 18, 2023


Mainvest is an innovative investment platform that focuses on providing individual investors with the opportunity to invest in private, brick-and-mortar businesses within their communities. This platform allows both accredited and non-accredited investors to support local businesses while potentially earning a return on their investments. In this article, we will explore the key features, offerings, and elements that set Mainvest apart from other investment platforms.

Learn More About Mainvest

Company Background: The Story Behind Mainvest

Founded in 2018, Mainvest aims to create a more inclusive investment ecosystem by offering alternative investments in small businesses that often face difficulty accessing traditional financing. Headquartered in Salem, Massachusetts, Mainvest enables investors to review business plans, vetting processes, and financial projections of local businesses, allowing them to make informed decisions about their investments.

Investment Opportunities and Offerings

Mainvest provides investors with access to various investment opportunities, including equity investments, debt investments, and revenue-sharing notes. The platform allows investors to diversify their portfolios beyond traditional assets like the stock market and real estate, offering exposure to alternative investments that can potentially generate attractive returns.

One of the unique features of Mainvest is its focus on non-accredited investors, who typically have limited access to private investment opportunities. The platform’s minimum investment requirement is generally around $100, making it accessible to a wide range of investors with varying financial resources.

Vetting Process and Business Plan Evaluation

Before listing an investment opportunity on its platform, Mainvest conducts a vetting process, which includes a limited background check, a review of the business plan, and an evaluation of financial projections. This ensures that the businesses listed on Mainvest meet a certain standard of quality and credibility.

Debt Investments and Revenue-Sharing Notes

Debt investments on Mainvest typically take the form of revenue-sharing notes, which are debt securities that provide investors with a share of a business’s revenue over a specified period. These investments have maturity dates, target returns, and a predefined rate of return based on the business’s performance.

Revenue-sharing notes offer investors the potential for attractive returns, with the rate of return tied to the success of the business. However, they also carry risks, as businesses may underperform or fail to generate sufficient revenue to repay investors.

Equity Investments and Secondary Market

In addition to debt investments, Mainvest also offers equity investments, allowing investors to acquire ownership stakes in private businesses. However, these investments are generally considered high-risk, as they depend on the business’s success and growth for potential returns.

Currently, Mainvest does not provide a secondary market for trading investments, which means that investors must hold their investments until maturity or until the business is sold or goes public. This makes investments on the platform relatively illiquid compared to traditional assets like stocks and bonds.

Fees for Investors and Risk Factors

Mainvest charges a 2% service fee for investors, which covers the costs of maintaining the platform, conducting due diligence, and providing customer support. There are no additional management fees or hidden costs for using the platform.

Investing in local businesses through Mainvest carries inherent risks, as small businesses often face challenges such as limited resources, competition, and market fluctuations. While the potential returns can be attractive, investors should carefully consider their risk tolerance and investment goals before committing to any investment on the platform.

Understanding the Impact of Investing in Local Businesses

Investing in local businesses through platforms like Mainvest can have a significant impact on communities, beyond the potential financial returns. In this section, we will explore the various ways in which investing in local businesses can benefit investors, businesses, and communities as a whole.

  • Strengthening the Local Economy: When you invest in a local business, you contribute to the growth and development of your community’s economy. As these businesses expand, they create jobs, increase consumer spending, and contribute to the local tax base. This can lead to a healthier, more vibrant community with a higher quality of life for residents.
  • Supporting Entrepreneurship and Innovation: Investing in local businesses helps to foster an environment that encourages entrepreneurship and innovation. By providing capital to entrepreneurs, you enable them to develop new products, services, and ideas that can improve the community and even create new industries. This can contribute to the overall economic growth and well-being of the area.
  • Building Community Ties and Relationships: Investing in local businesses allows you to develop stronger connections with the business owners and other community members. This can lead to increased collaboration and partnerships, as well as a greater sense of pride and belonging within the community. These connections can be valuable for both personal and professional growth.
  • Enhancing the Local Landscape: By investing in local businesses, you contribute to the preservation and enhancement of the unique character of your community. This can lead to a more attractive and diverse local landscape, which can attract tourists, new residents, and further investment.
  • Encouraging Responsible Business Practices: Investing in local businesses can also encourage responsible business practices, as you can directly influence the values and operations of the businesses you support. This can lead to businesses that prioritize sustainable practices, ethical sourcing, and community engagement, which can have positive effects on the environment and the overall quality of life in the community.

Customer Support and Financial Advisor Access

Mainvest provides customer support through email and phone to address any concerns or questions that investors may have. While Mainvest does not offer direct access to financial advisors, investors are encouraged to consult with their own financial advisors or conduct thorough research before making any investment decisions on the platform.

Mainvest: A Unique Platform for Local Investing

Mainvest offers a unique opportunity for individual investors to support local businesses while potentially earning a return on their investments. The platform’s focus on non-accredited investors, low minimum investment requirements, and extensive vetting process make it an attractive option for those looking to diversify their portfolios with alternative assets.

However, investors should be aware of the risks associated with investing in small businesses, as they can be susceptible to various challenges and uncertainties. As with any investment, it’s crucial to carefully consider your investment goals, risk tolerance, and personal financial situation before committing to any investment on the Mainvest platform.

If you’re interested in exploring local investment opportunities and supporting businesses within your community, Mainvest may be the right fit for you. To get started, simply create an account using your email address, review potential investments, and make an informed decision about which opportunities align with your investment goals and risk tolerance.

Click here to get started today!

Get Started With Mainvest

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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