This Crowdfund Mainstreet Review will help you learn more about Crowdfund Mainstreet's investment offerings, including how the alternative investments on Crowdfund Mainstreet are structured, and what your potential returns might be. You can read more about the criteria we use to review investment platforms here.
CrowdFund Mainstreet is a Reg CF investment portal, offering different types of “campaigns” to invest in. Based in Oakland, California, CrowdFund Mainstreet was founded by two attorneys who say they were seeking to bring sustainable startups to the investment crowdfunding market.
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Types of investments Crowdfund Mainstreet offers
CrowdFund Mainstreet offers primarily equity investments in startups and growth-stage companies. Earlier-stage startups are generally riskier, though may offer the potential for a greater return in the long-run (that is, if they return anything at all). CrowdFund Mainstreet’s offerings vary from energy companies to coffee companies to book publishers; however, all investment opportunities are intended to have some sort of clear positive social impact.
What do you get when investing with Crowdfund Mainstreet?
With Reg CF investments, individual investors receive a security directly from the company. Details vary by offering, but CrowdFund Mainstreet companies typically issue common stock, convertible notes, or SAFEs. The specific security an investor receives depends on the specific offering.
How does Crowdfund Mainstreet make money?
Crowdfund Mainstreet does not charge any fees directly to investors. They charge issuers 6% of the total amount raised in the campaign (plus other administrative fees like escrow providers), and/or they are issued some of the securities from the offering. Prospective investors should be aware that these fees reduce the amount of capital available to the startup for funding their operations.
Potential returns and cashflow
Investments on CrowdFund Mainstreet are high-risk investments based on the reason that you are investing in startups with little to no stability. There are usually no dividends or interest payments, and returns on investments are not guaranteed.
Breadth of offerings on Crowdfund Mainstreet
As of right now, there is only one active offering on CrowdFund Mainstreet. CrowdFund Mainstreet has run 10 campaigns to date, and all of them have reached their funding goal. Investments are tiered, and as with other Reg CF portals often offer different perks at each level, based on the amount invested.
Regulatory framework and due diligence expectations
CrowdFund Mainstreet is owned by MiTec, PBC, an SEC registered Title III Funding Portal, which means they are subject to a range of rules and obligations around investor education and due diligence. All companies offering investments on CrowdFund Mainstreet will have been a minimum of background checks of key officers and owners. Prospective investors also have access to online forums to talk with other investors, and an online channel for asking questions of the company raising funds (and viewing answers of prior questions from others).
This review was first published on 09 June 2022.