Overview
Are you looking for an investment outside of the stock market? Do you want to invest in start-up companies? If so, NextSeed could be for you. NextSeed is yet another crowdfunding site. They offer investments to non-accredited investors with a focus on retail, real estate, and restaurant businesses located primarily in Texas and California. NextSeed was one of the first Title III Funding Portals to offer Reg CF investments to investors nationwide.
Investment Focus
NextSeed offers investments in the retail, restaurant, real estate, and niche business start-ups. They have found a niche by focusing on businesses in college towns. The investments are open to everyone. You actually only need $100 to get started. As of the writing of this article there are seven investment opportunities available to you on their site.
Investment Model
The investments offered are debt only. There are two methods of payout to investors. one is a traditional loan with regular monthly interest and principal payments. The second is a revenue share model. Under the latter, you will be a paid some predetermined percentage of monthly revenue until a predetermined multiple of your original investment is reached.
NextSeed Fees
NextSeed makes a profit by charging a 1% fee on all payments made to you the investor. They also charge 10% on the capital raised by the businesses that invest on their platform.
Website and Community
The website is user friendly with in-depth reviews of the various investment offerings. You can sign up for a newsletter alerting you to new investment opportunities, classes, and company sponsored events. There is even a forum where you can chat and trade information with other investors.
Risk
NextSeed is a Title III Funding Portal regulated by the SEC. You can be confident that the figures being disclosed, and the businesses being offered for investment have been thoroughly vetted. However, you can still lose money if the businesses fails to get off the ground. As with any investment type you should only invest as much as you are comfortable losing.
Conclusion
NextSeed is another crowdfunding site focusing on retail, restaurants, and real estate. Most investments are in Texas and California and are near college towns. Barrier to entry is low, as you only need $100 to invest. You receive payouts in two ways. Either through a monthly debt and principal payment or via a predetermined percentage of monthly revenue. NextSeed can offer an alternative investment class if you want to break out from traditional stock investments, but there are a limited number of investments currently being offered. Although NextSeed is regulated by the SEC, reliable information on start-ups can be hard to find. As always, invest only what you are comfortable losing.
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
