Alternatives to Wall Street Investing

/ Investing / By

Small Businesses and Startups

  • Wefunder – A well established platform matching investors and businesses. Businesses are not pre-vetted, so you’ll need to do your own due diligence. If you want to invest with retirement savings, you can do so through Alto IRA.
  • SMBX, The Small Business Bond Marketplace – Offers bonds with a straightforward rate of return. While offerings are limited, I’ve found the platform easy to use. Pre-vetting of businesses is minimal, so do your own due diligence.
  • Republic – This platform has a process of highly vetting the businesses that they offer. They also have an “autopilot” function that you can set up to automatically invest in businesses meeting certain criteria.
  • StartEngine – An established platform offering businesses that are not pre-vetted, so do your own due diligence. 
  • Localstake – Focused on connecting small businesses with local investors. Businesses are not pre-vetted, so you’ll need to do your own due diligence.
  • Microventures – Offerings focus on startups that are pre-vetted.
  • SeedInvest – Prioritizes extensive due diligence and vetting for the business offerings available on the platform.

Impact Investing Funds

  • Calvert Community Investment Note – Investments are deployed in communities and small businesses through Community Development Financial Institutions (CDFIs). You receive a fixed rate of return. 100% of repayments of principal + interest have been made since it started in 1995.
  • CNote– Investments are distributed in communities and small businesses through Community Development Financial Institutions (CDFIs). You receive a fixed rate of return.

Peer-to-Peer Lending

  • Prosper – Make loans directly to other people. Diversified risk options are available, however, access to lending is not available in all states. 

Real Estate

  • Small Change – Platform allows for investment in real estate projects that are impact driven.
  • Fundrise – A well-established crowdfunding investing platform focused on multifamily and commercial real estate. Offers diversified portfolio options as well as automated investment options. For an additional fee, you can invest using retirement savings in a self-directed IRA.
  • DiversyFund – Offers investment options for vetted multifamily commercial real estate. Rather than investing in specific projects, you invest in a single Growth REIT (Real Estate Investment Trust) that is used for multiple projects, which offers some diversification.
  • GROUNDFLOOR – Real estate investment platform prioritizing very low starting account minimums and shorter term investments. Offerings are focused on fix and flip residential properties.
  • Roofstock – Supports investors who are looking to buy and own single family rental properties.

Food and Farming

  • Credibles – Platform to connect local food ventures with customers. You prepay and receive credits to use like a gift card. Many companies offer a financial incentive, for example, $110 worth of credit for a $100 prepayment.
  • Steward – Invest in sustainable farm projects using this online platform.

Music and Royalties

Video Games

  • Fig – Offers investment in independent creators of video games. Recently joined with Republic (see above).

Art

  • Masterworks – Platform for buying and selling shares of blue chip art.

North Carolina

  • NCGrind – Lists investment opportunities from other platforms that are located in North Carolina. Focused on supporting local investing and partners with Crowdfund NC.
  • Localstake NC – Lists NC opportunities available on the Localstake platform (see above).
  • Slow Money NC – Connects interested investors to small businesses focused on sustainable food and farming. Does not have an online platform for transactions. Pre-vetting of businesses is minimal, so you’ll need to do your own due diligence.