09 October 2017 @ 8:00AM Equity Crowdfunding Investors
OnMarket allows me to invest in companies that I want to see succeed and make an impact on the world
I joined OnMarket in October 2015.
I joined because OnMarket provides me with greater access to IPOs and an advantage when initially screening investment opportunities and undertaking diligence. What I like about OnMarket is that you can efficiently assess the merits of a number of investment opportunities and decide if they fit the bill (i.e. for what is a relatively small gamble in the scheme of things, they demonstrate scope for an asymmetric return profile). The platform has a broad range of early stage growth companies that have the capacity to succeed and it gives me access to companies that aren’t readily available (if available, at all) on other platforms.
Through OnMarket I’ve invested in BuyMyPlace (BMP), China Dairy (CDC) and Powerhouse Ventures (PVL).
I also bid for H2Ocean Limited, before the IPO was cancelled.
My primary focus is wealth creation. I like to invest in companies that will generate value over the long term.
However, there is a caveat. Irrespective of the potential financial returns, I wouldn’t invest in a company whose services or products inflict negative consequences on society’s welfare. As an investor contributing capital to new business ideas and societal growth, I feel a duty and part responsibility for the direction in which our community moves.
Personally, the most important factor is the company’s leadership – “Do I back management to execute on a unique strategy?” I believe that if the company’s leaders have the right vision and a strong track record of delivering growth, there is a high chance the firm will succeed.
The next thing I look for is whether the industry that the company is entering has potential for growth. If a company enters a saturated market that has a number of incumbent companies providing similar solutions, chances of growth are minimal. So, I’d prefer to invest in companies that are entering a ‘new market’ with what is essentially a blank canvas, providing new ideas with a runway to succeed.
This leads into the next thing that I look for when investing. I prefer to invest in companies early. Very early. If the company’s vision is appealing and they have strong management, there is no reason not to invest during the company’s ‘conceptual’ stage.
Another factor that I consider is if the company will bring positive change to our society. Although, financial gains are my primary motivator, a company that represents change peaks my interest.
ECF is tremendously powerful and is a great way to make a positive impact on society. It is a form of investing that I believe would appeal to most millennials, myself included. Although the quality of the company’s vision is again the primary consideration, contributing to the momentum behind a crowd of likeminded investors creates a sense of participating in something big.