Founded in 2011, Localstake set out to make investing in private businesses available to more everyday investors. “We see private business investing as an attractive asset class that has not been available to most investors. It’s an investment that can provide the alternative exposure from the stock market that many investors are demanding,” said Brandon Smith, one of three on the founding team at Localstake.
The crowdfunding investment opportunities on Localstake come from businesses seeking to raise up to $1,000,000 in capital from local investors. Businesses are able to raise capital by issuing equity, loan, and revenue share securities. Localstake is currently accepting applications to raise capital from businesses in all industries at all stages of growth and development. Investors will be able to invest in businesses at investment minimums as low as $500.
At the core of Localstake is connecting small businesses with investors on a local level. “We originally wanted to focus on local opportunities because of the added protection it brings to prospective investors. We quickly saw many other benefits,” said Kevin Hitchen, another founding member.
“It’s easier for investors to research and understand the market and business when it is located in their community. Local investors contribute capital, but also become customers and advocates, ultimately helping grow sales of the businesses they invest in. Local investing brings a tangible connection to your investment,” said Hitchen.