Kevin O'Leary Says 'Crowdfunding Is The Best Way to Raise Capital' As Retail Startup Investing Market Crosses $2 Billion Raised

Kevin O’Leary, the "Shark Tank" star known as Mr. Wonderful, has built an impressive portfolio of startup investments while advocating for a democratized approach to investing through crowdfunding. 

With investments in 85 companies and 12 successful exits, O'Leary’s track record speaks volumes about his acumen in entrepreneurship, and you can invest in startups along with him without being an accredited investor or venture capitalist. 

Before Regulation Crowdfunding (Reg CF) and Regulation A+, startup investing opportunities were largely limited to accredited investors and venture capitalists. But the new regulatory frameworks have reshaped the investment landscape, allowing retail investors to directly invest in startups and own shares of promising companies.

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With more than $2 billion pumped into the retail startup investing market since its creation in 2016, the industry has seen massive success.

O’Leary’s alignment with crowdfunding is evident through his strategic advisory role at leading crowdfunding platform StartEngine and his vocal support for the concept on social media platforms. 

"In this digital world, crowdfunding has become one of the best ways for young companies to raise capital," O'Leary posted on LinkedIn. 

Investors don't have to be wealthy to participate in crowdfunding — they can take advantage of investing in startups with as little as $100.

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"I have a relationship with StartEngine, one of the largest crowdfunding platforms in the world," O'Leary said on the  Pomp Podcast. "So when a company has 100,000 customers that have tried, this product is still private. We can go to the customers and say, ‘Look, you love our product, you love our service. Now, we’re going public, you can buy our shares, you can buy them online. You can put $200 to $2,000 or $20,000 into the company that you’ve been supporting now for five years.'"

O’Leary’s investment track record underscores the potential of crowdfunding for retail investors. For instance, Honeyfund, after securing a revenue share deal with O’Leary on "Shark Tank," launched multiple crowdfunding campaigns, raising significant capital from over 3,200 investors. Similarly, Beanstox, cofounded by O’Leary, raised about $3 million on StartEngine, demonstrating the efficacy of crowdfunding in fueling startup growth.

However, with over 300 companies seeking funding at any given time, identifying and researching promising investment opportunities can be daunting. This is where platforms like Hubtas come into play. Offering nearly 40 filters on its search screens, including indicators like “VC backed” and “Past Exit,” Hubtas simplifies the process of discovering startups that align with investors' criteria.

Investors can easily identify key risks of a company while getting an overall "Quant Score." 

O’Leary’s endorsement of crowdfunding as the preferred method for raising capital reflects a broader shift toward democratizing access to investment opportunities. For investors, crowdfunding presents a unique avenue to participate in the growth of startups and diversify their portfolios, provided they conduct thorough due diligence and leverage tools like Hubtas to navigate the expansive landscape of startup investments.

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