INVESTOR MASTER CLASS

Lesson 4: How to Choose Companies to Invest In (1:53)

Overview

Having trouble choosing which company to invest in on Equivesto? Make sure to consider these questions before investing.

Transcript

Hi, I’m Riley from Equivesto and we’re talking about how to pick companies to invest in. 

When it comes to companies on the Equivesto platform, we have delegated lots of time to reviewing and vetting these companies to ensure that there is no funny business.  But it’s still super important that you review the information yourself as each company is different and is presenting a unique offer.  Check out multiple companies and decide which offerings are the most compatible with what you want.  

When you’re reviewing a company’s investment campaign, we recommend asking yourself these questions:

  • Do you connect with and support this company’s message?

  • What are their current goals, what do they plan to do with the raised capital, and do their projections make sense to you as an investor? 

  • Do you think their team’s experience, education, and personalities make them capable of achieving their desired outcome?

  • Are they currently making money now? What stage are they in? 

  • How do they make their money, and does that make sense to you?

  • What type of shares will you be receiving from them? 

  • When could you receive your potential payout? The average timeframe is within 3 to 7 years.

  • What are the specific risks associated with this company?  All companies on Equivesto are required to post their associated risks on their campaigns.  Think about the goals they have, the risks they face, and use your gut on this one.  

  • Most importantly, review the Offering Document which is present in every campaign.  This document legally summarizes the investment with this particular company. 

Now, it’s ultimately up to you to decide whether you want to invest.  But here’s one last important tidbit of information! Every company has a minimum and maximum raise goal.  The minimum is the amount listed on the offering that you see.  But of course, they can go beyond that! If they don’t raise the minimum amount, the money you initially invested will be refunded back to you into your account.  Also, if you choose to invest, you have a 48-hour backout window where you can change your mind and also have the money you invested refunded to you.

Feeling more confident? Great! You’re ready to move onto the next video.

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