Crowdinvesting: A Simple Solution for Crowdfunded Investments
Crowdinvesting vs. Crowdfunding
Equity crowdfunding, more commonly known as crowdinvesting, gives people the ability to invest small or large amounts of money in a private company in exchange for shares or a percentage of ownership. Gaining traction in 2009, crowdinvesting is a relatively new but rapidly growing concept.
Predating equity-related crowdfunding, crowdfunding has been a resource for startups and projects to raise funds from a collective effort by people who may see it as a donation. Crowdfunding emerged in the 1700s with the creation of Irish Loan Fund to provide loans to poor but creditworthy people from donations from wealthier citizens. More recently, we have seen the success of campaigns such as the Oculus VR headset and The Tile App Locator with their start on crowdfunding platforms such as Kickstarter and Indiegogo.
In 2012, Fundable became the first crowdinvesting platform to launch in conjunction with the JOBS Act. With the addition of Title III to the JOBS Act, this pivotal piece of legislation opened doors for every American to have the opportunity to invest in a startup. This became a major advantage for people interested in becoming part of the buying and selling of shares in the early stages of a new startup. Before Title III, buying shares in a private company was reserved for the few who could meet strict financial requirements.
Investing Made Easy
EnergyFunders is making crowdinvesting even easier with an intuitive online platform to invest directly in oil and gas. For the first time, investors have access to highly vetted, objectively reviewed projects that meet the standards of extensive checklists.
Currently, EnergyFunders projects are only available to accredited investors. Accredited investors can participate in a project with a buy-in through the platform. Buy-ins vary from case to case, with most of EnergyFunders’ available projects requiring a $5,000 minimum.
Transparency is one of EnergyFunders’ pillars of success. Investors can rest assured that they can examine all information about the project, including reviews, disclosure statements and relevant projections.
We have made the process to become an EnergyFunders accredited investor as simple as possible. Sign up in minutes.
Advantages of Oil and Gas Investing
Tax incentives are one of the main differentiators between oil and gas investing and other assets, as investors have the option of receiving substantial tax deductions.
Investors purchase working interest in the well and generate revenue based on their pro rata share in the project. From the start, investors have the option to own interest as either a general partner or as a limited partner.
Although EnergyFunders anticipates holding wells for five years, stakeholders can benefit from receiving payments on a monthly basis.
Protecting investors is a top priority for EnergyFunders. With all interests managed by a highly experienced team of oil and gas professionals, investors benefit from access to highly vetted projects with top-tier operators.
Investors in any industry must be aware of the possibility of losing money. In oil and gas investing the risks are higher (e.g., the nature of drilling immature fields means there is potential for a dry well); however, there are also great rewards.
Also, oil prices change rapidly, and falling prices could make a project unprofitable, resulting in the well being shut down. Therefore, keeping investment dollars in multiple well packages is key to lowering that overall risk. The EnergyFunders platform allows investors to stay abreast of these opportunities as they arise.
The key to investing in oil and gas is to only invest what you can afford to lose and to diversify your investments to spread out your potential risks and rewards.
To learn more about EnergyFunders and crowdinvesting, contact us.