While they don’t offer equity investments, Chicago-based Bolstr does offer something more interesting (and more flexible for the borrower) than just a vanilla loan, which is a revenue share agreement with the borrower, who agrees to share a percentage of revenues (from 1-6%) until a specified multiple of the original investment is reached. Loans are also secured with both a personal guarantee from the borrower, and a security interest in the business itself.
In addition to individual investments, you can choose an automated investment feature, though it requires an initial commitment to at least 10 loans, so at least $50,000 .Bolstr positions themselves as a “borrower-first” lender, and their website reflects that, with plenty of info on how they stack up against both traditional lenders like banks and the SBA, as well as more modern merchant lenders like OnDeck and Kabbage.
- Website: https://bolstr.com
- Investment Types: Startups/Business Financing
- Security Types: Debt
- Minimum Investment: 5000
- Must be accredited
You may be able to invest in Bolstr using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.
Bolstr in the news
Small Business Success Story: Magnolia Brewing Co. Raises $150,000 With Bolstr - NerdWallet
With financing through Bolstr, small-business owners do not give up any equity in their businesses.Read More
Bolstr Lets Founders Crowdfund New Investment--Without Giving Up Equity | Inc.com
A startup is offering crowdfunded loans in small businesses with solid financials as it appeals to first-time investors.Read More