How to Make Money with Impact Crowdfunding

This post is originally posted here by Devin Thorpe

Your Guide to Profitable Investing in Support of Diverse Founders, Social Entrepreneurs and Community Builders

https://www.youtube.com/watch?v=GF33uPcoGEs

AI Summary

1. The host, Devin Thorpe, introduces his show "Superpowers for Good," where he provides education on making money with impact crowdfunding, investing for positive change, and matching market returns.

2. Devin emphasizes the importance of making money while having an impact, explaining that financial returns allow for continued investment and greater impact over time.

3. He provides an overview of the stock and bond markets, mentioning the average returns (10% for stocks and 6% for bonds) and the risks involved, including significant losses during downturns.

4. Devin delves into the concept of impact investing and how it can address issues such as climate change, global health, and poverty through investments in companies working in those areas.

5. The episode covers the regulated nature of impact crowdfunding, which is overseen by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), and the growth of this form of investing.

6. Thorpe mentions the Impact Cherub Club, a group he is involved with that focuses on investment crowdfunding for social good, encouraging listeners to join and invest collaboratively.

7. Six common investment types in impact crowdfunding are discussed: term loans, revenue-based financing, convertible notes, simple agreements for future equity (SAFEs), preferred stock, and common stock.

8. Three specific investment strategies are outlined: yield (focusing on interest and dividends), venture capital (seeking appreciation of investment), and hybrid (a mix of yield and venture capital approaches).

9. The importance of due diligence is highlighted as the critical difference maker in investment outcomes, with Devin providing five keys: understanding risks, assessing impact, evaluating the management team, considering deal terms, and looking at business prospects.

10. Finally, Devin explains how individuals can start small by investing as little as $10 in impact crowdfunding deals, specifically mentioning the platform "SMBX" as a place where small initial investments are possible.