Group Capital Opportunities for Entrepreneurs
Equity Offerings: With equity-based crowd financing, investors receive a share of ownership in your company. The rate of return on their investments is linked to the future performance of your company. An agreement specifies the percentage of the company’s ownership the investor acquires as a result of the investment as well as other terms of the deal.
Debt Offerings: In this lending-based, crowd-finance model, you provide investors with a debt instrument that states the terms of future repayment, which typically include the investor’s principal, plus a fixed rate of interest, payable on a specified time schedule.
There are both secured and unsecured debt instruments. Debt instruments that are secured against a company’s assets usually provide a lower rate of interest than unsecured debt instruments, because they may be viewed as having less risk.
Group Offerings: Group Capital’s themed sector funds offer plentiful crowd financing opportunities designed to appeal to an investor’s particular areas of interest. These funds may include equity, debt, or royalty based investments. Each themed group is managed by a Registered Investment Advisor (RIA) and is counseled by a well-known sector expert known as a Group Capital “Group Guru.”
Group Capital’s groups include:
- Distressed Business Group
- Franchise Group
- Commercial Real Estate Investment Group
- Technology Start-Ups and Ramp-Ups
- Media Group
- Agricultural Group
- Sustainable Technology Investments
- Geographic-Based Investments (New York, Philadelphia, etc.)
- Minority Owned Business Group
- Biotechnology Group
- Financial Group
- Healthcare Group
- Natural Resources Group
- Socially Responsible Group
- Telecommunications Group
- Public-Private Partnership Group
- Emerging Markets Group
- Energy Group
- Restaurant Group
- Hospitality/Entertainment/Themed Restaurant Group’
Royalty Offerings: Royalty-based crowd financing provides an investor with an agreement that guarantees the investor a percentage or fixed amount of a revenue stream.
These investments may involve an interest in a company’s intellectual property or a more tangible product, such as an agricultural product or other commodity. An example of royalty-based crowd financing could involve investment in the development of a company’s new mobile app. When the product produces a revenue stream, investors would begin receiving payments.