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Tag Archives: Accredited

Chicago Real Estate Equity Crowdfunding Site Now Accepting $5,000 Investments from Accredited Investors

19 Mar

PeerRealty Opens $1,000,000 Investment Opportunity for Investors to Invest in the Illinois Riverside Plaza Shopping Center

 By Robert Hoskins

Chicago, IllinoisPeerRealty.com announced that it is now accepting investments from accredited investors interested in investing in the Riverside Plaza shopping center in Belvidere, Illinois. The $1 million offering is one of the largest real estate crowdfunding offerings in Illinois history.

PeerRealty Real Estate Equity Crowdfunding Platform in Chicago Illinois

PeerRealty Real Estate Equity Crowdfunding Platform in Chicago

“When I founded PeerRealty last year, I wanted to give ordinary investors the opportunity to participate in the types of large-scale commercial and residential real estate deals that had previously been reserved for institutional investors,” says PeerRealty CEO Jordan Fishfeld. “I also wanted to give Midwest real estate investors the chance to invest close to home, so I’m thrilled that we’re able to bring real estate crowdfunding opportunities to this largely untapped market.”

Investors had previously been able to make non-binding investment reservations while the due diligence process was being completed. Accredited investors now have the opportunity to participate in an equity investment in Riverside Plaza, a 62,538-square ft shopping center located in the heart of downtown Belvidere, Illinois, one hour northwest of Chicago.

The minimum investment in the offering is $5,000. The deal is sponsored by Crosstown Capital Partners, LLC, a Chicago-based real estate investment firm with over 20 years of experience investing in and managing commercial property.

PeerRealty.com is a streamlined, online portal that allows any accredited investor to participate in high-quality real estate deals. A strong team and advisers with institutional backgrounds review and select deals. The founding team has over 10 years of real estate investing experience, and includes M.B.A.’s from Northwestern University’s Kellogg School of Management, the University of Chicago Booth School of Business, and the University of Miami (FL). Exclusive PeerRealty sponsors include Elmdale Partners, Windy City RE, LLC and Heritage Realty Partners Inc.

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EarlyIQ Announces U.S. Investment Benchmark Study on $40 Billion Equity Crowdunding Industry

14 Mar

By Robert Hoskins

EarlyIQ, Inc. released the results of a new CrowdfundIQ Benchmark Study, which is the Crowdfunding industry’s first national study on potential US equity Crowdfunding investors. The Crowdfunding research study provides unique and quantifiable insight into the demographics, investment intent, planned investment frequency, and views of likely equity Crowdfunding investors in the United States.

CrowdfundIQ Benchmark Study on $40 Billion Equity Crowdfunding Investors

CrowdfundIQ Benchmark Study on $40 Billion Equity Crowdfunding Investors

Highlights from the study include:

  • Annual market size estimate at maturity likely reaches $20B-40B – similar to angel and venture capital markets.
  • Anticipated investment frequency is 2-3 investments annually, averaging just under $2,000 per investment, for investors with annual household income $75K+.
  • The likely investor profile is middle aged, upper middle income, urban/suburban dwelling and college educated, with almost 70% indicating a high likelihood to invest.
  • 58% of all respondents indicate high interest in early stage equity investments
  • #1 demand by likely investors is transparency by the management team.
  • Government review of issuing companies is not a requirement of likely investors with only 5% requiring.
  • Investment intent rises 4-times when a neutral 3rd party provides review of the management team.

“The most intriguing aspect of the study is the strong appetite for investment and the demand for transparency in the market,” noted Steve Yin, co-founder and CEO of EarlyIQ. “We’re also encouraged by the uniformity of interest across demographics. We believe it speaks to an American desire to support entrepreneurship,” Yin added.

The study was conducted in time sequence throughout 2012, both before and after the passage of the JOBS Act. The nationwide online survey was conducted with a random sample of 480 complete respondents in total with a minimum qualification of an annual income of $25K.

Early IQ, Inc is a San Diego, California based, hosted information and analytics company serving early stage capital markets including the Crowdfunding, peer lending, angel, accredited, private equity, and venture capital.

EquityNet Issues Equity Crowdfunding Research Report with Six Years of Data

14 Feb

By Robert HoskinsFront Page PR

EquityNet unveiled a free Equity Crowdfunding Industry Research Report containing statistics and trends based on U.S. businesses that used EquityNet from 2007 to 2012 to seek equity-based crowdfunding from accredited Reg D investors.

Presented in the form of an embeddable infographic, the report presents some of the first statistics available on the original form of equity crowdfunding that involves the use of funding platforms such as EquityNet by accredited investors.  It provides insight into how crowdfunding will appear under the deregulating provisions of the U.S. JOBS Act in which millions of non-accredited investors will be able to invest in privately-held businesses.

In introducing the report, Judd Hollas , EquityNet’s founder and CEO, said that the crowdfunding industry is hungry for “more data and less rhetoric.”  “We are in the unique position of having 6 years of granular data from our patented platform and prepared this report to provide a statistical industry perspective for investors, entrepreneurs, policymakers, service providers, and others in the crowdfunding ecosystem.  Although some high-level information has been available, the trends and statistics that emerge from this report present valuable new insights into the emerging crowdfunding industry.”

The new report contains business composition statistics and trends for many important attributes and even demonstrates the effects of the recession.  For example, the average amount of capital being sought by entrepreneurs has varied greatly since EquityNet launched its platform in 2007.  In 2008 the average capital sought was $2.5 million and dropped to an average of$800,000 by 2010.  The economic downturn also left its mark on companies’ average pre-investment valuation, which fell from$6 million in 2008 down to nearly $3 million by 2010.  Both of those metrics strengthened along with the economy by 2012.

Among other statistics presented and analyzed in the report are:

  • Consumer and business product/service companies account for over 40% of equity crowdfunding activity. These are industries that were previously underserved by traditional venture capital.
  • Around 50% of businesses that use equity crowdfunding seek less than $500,000 in investment capital.
  • Valuations vary widely in equity crowdfunding with around 40% of pre-money valuations being under $1,000,000.
  • Approximately 70% of businesses seeking equity crowdfunding had no revenue in the previous year, but 75% of those businesses expect to generate revenue in their current fiscal year, indicating that the majority are at the revenue-inflection point.
  • 15% of businesses seeking funding are currently profitable, and 90% of the remainder predict that they will be profitable in 3 years or less.
  • 30% of the businesses in the sample have patents or patent applications for proprietary technology.

Hollas noted that the sample analyzed for the report involved over 1,000 businesses and emphasized the significance to the industry of the first data-driven report based on 6 years of operation in the equity crowdfunding industry.

“We feel that these statistics provide the first-ever information that can be readily extrapolated to represent the entire crowdfunding industry.  Our report contains 15 data-packed charts, graphs, and related commentary.  We hope that entities in the crowdfunding ecosystem find our report helpful as we approach the anticipated early-2014 date for the SEC to finalize their regulation-making process that will give legs to the Title III of the JOBS Act of 2012.”

EquityNet prepared this crowdfunding report in response to the widespread interest in equity crowdfunding as provided in the Jumpstart Our Business Startups (JOBS) Act that President Obama signed into law in April 2012.  The JOBS Act relaxes regulations on fundraising for privately-held businesses and gives online funding platforms like EquityNet more flexibility in facilitating that fundraising.

The crowdfunding provisions of the Act are getting the most attention because they will allow entrepreneurs to solicit the general public for investment, an activity that was previously prohibited.  Proponents of the Act state that it will directly lead to more businesses starting and to increased employment – and that it will encourage business and technological innovation in the U.S.

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