Equity crowdfunding is how people (the “crowd”) can purchase shares (equity) in an early stage company not listed on a stock market.
Until just recently, due to the inherent risks of investing in this type of equity, only those with sufficient experience and or wealth have been able to invest.
Today, technology has made it possible for these kinds of investments to be widely marketed on equity crowdfunding platforms (websites) and governments in a few countries (UK, New Zealand) have made it legal for these platforms to market these investments to members of the public (anyone).
A different kind of equity for a different kind of crowd
AngelEquity offers a unique form of equity crowdfunding – different in two important ways:
- The kinds of investment opportunities
Only deals which have acquired personal investment from angel investors and have been through the rigorous assessment and preparation undertaken by formal angel groups are listed on AngelEquity.
- The kinds of investors
Only angel and wholesale investors can invest in AngelEquity deals.
Why Take This Approach?
All investors investing in early stage companies in New Zealand deserve to invest the way angels – the most experienced investors – do.
However, even with all the expertise and rigor angels apply to their investments in the attempt to mitigate risk angels will lose most or all of their money in at least 50% of the companies. The chance of any one investment making a significant return is less than 1 in 10.
This level of risk is the reason why selling these kinds of investments to members of the public is not allowed in most countries and the reason for AngelEquity to offer its deals to a limited number of people.
The law usually requires people offering financial products to provide information to investor’s to help them make informed decisions before they invest.
By providing a Wholesale Investor Certificate as a requirement of joining AngelEquity you acknowledge that these usual rules do not apply to you or the offers of financial products (including debt securities, equity securities, and derivatives) made to you.
As a result, you may not receive a complete or balanced set of information. You will also have fewer other legal protections for these investments.
Make sure you understand these consequences. Ask questions, read all documents carefully, and seek independent financial advice before committing.