Frequently asked questions
Who can invest in these companies?
In 2016, Congress passed the JOBS Act, which allows private companies to solicit fundraising from the public. In most cases, anyone can invest in the companies listed on Crowdonomics, subject to SEC limits based on income and net worth.
How do I make money?
Realizing a return on your investment takes different forms based on the investment type. Revenue shares, loans, and convertible notes usually get a return by receiving repayment on the debt, whereas SAFEs, convertible notes, and common/preferred stock require an "exit" of some type - the company being bought or listing shares publicly on a stock exchange.
What do the different investment types mean?
Every deal has its own unique contract, so be sure to read each prior to investing! That said, here are some general guidelines as to what the investment types mean: