Localstake launches local crowdfunding marketplaces and crowdfunding investor education

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Localstake announced today the launch of its locally-focused crowdfunding marketplaces aimed at connecting small businesses seeking capital with local investors. It also launched Localstake Academy, its investor education platform to help teach investors about investing in private businesses.

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Local investors contribute capital, but also become customers and advocates, ultimately helping grow sales of the businesses they invest in. Local investing brings a tangible connection to your investment

Founded in 2011, Localstake set out to make investing in private businesses available to more everyday investors. “We see private business investing as an attractive asset class that has not been available to most investors. It’s an investment that can provide the alternative exposure from the stock market that many investors are demanding,” said Brandon Smith, one of three on the founding team at Localstake. 

The crowdfunding investment opportunities on Localstake come from businesses seeking to raise up to $1,000,000 in capital from local investors.  Businesses are able to raise capital by issuing equity, loan, and revenue share securities. Localstake is currently accepting applications to raise capital from businesses in all industries at all stages of growth and development.  Investors will be able to invest in businesses at investment minimums as low as $500.

At the core of Localstake is connecting small businesses with investors on a local level. “We originally wanted to focus on local opportunities because of the added protection it brings to prospective investors. We quickly saw many other benefits,” said Kevin Hitchen, another founding member.  

“It’s easier for investors to research and understand the market and business when it is located in their community. Local investors contribute capital, but also become customers and advocates, ultimately helping grow sales of the businesses they invest in. Local investing brings a tangible connection to your investment," said Hitchen.

Localstake is organized into statewide marketplaces. Each investor is connected to their home marketplace and the opportunities they see come from the state in which they live. The goal is to create ecosystems in each state, not just connecting businesses with capital, but with service providers, advisors, and government organizations. These can play a role in helping make the businesses successful in the long run. Investors form a productive, long-term relationship with the businesses as well, staying engaged through Localstake’s investor relations platform.

“Having backgrounds in investment banking and investment management really gives us a unique perspective on the opportunities available through crowdfunding,” said Ryan Flynn, the third founder. Localstake Academy, an interactive investor education platform, walks investors through mock investment opportunities, teaching them about the unique characteristics and risks inherent to private business investing.  Lesson topics include performing due diligence, valuing a business, and understanding a term sheet, among many others.     

“As we look at this from an investor’s perspective, education is an important component of introducing this asset class to everyday investors.  The goal of Localstake Academy is to provide individuals with the knowledge they need to make educated investment decisions when adding private business investing to their portfolio,” said Flynn.

Localstake operates locally focused crowdfunding marketplaces that connect small businesses looking for capital with local investors and community partners.  Launched in 2011, Localstake’s tools for investors and businesses make the capital raising process more efficient, engaging, and social. You can find out more at http://www.localstake.com.

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