There is a lot of excitement around startups and people asking how they can get in on the action. One option is to invest in a startup directly, through the Angel investor route. That’s a lot of work for a very uncertain return. The other option is to invest indirectly by using an app that invests in startups on your behalf.
In this post we look at the best investment apps you can use to grow your money and help create jobs.
OurCrowd
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OurCrowd is an equity crowdfunding platform investing in global startups. They have a community of over 30,000 investors worldwide.
For startups, they share a 5-step process. Startups will be screened in step one before meeting with OurCrowd in step two.
Step three involves due diligence meetings with the investment teams. Afterward, your startup will be presented to the investment committee where they will make their final decision in step four.
Once accepted, your startup will move on to step five to the fundraising stage. At this stage, you will have access to investors and you will be able to participate in events.
FundersClub
FundersClub claims to give startups an unfair advantage by using innovative software and their powerful, global network of 22,000 members.
Startups get access to a founder community where they can communicate with other entrepreneurs and get help through online and in-person events.
You will also have access to mentorship through FundersClub’s own team members. These members have been through every step of the startup cycle from launch to exit.
FundersClub receives a percentage of the profits of the investment. They are only charged if there is a positive outcome for the campaign.
Eligibility requirements are not limiting, however, they only accept 2% of applicants into their platform. They are looking for startups with early-stage companies with seed or Series A round being preferred. They want to see if your startup has the potential for enormous growth.
SeedInvest
SeedInvest’s startup investment platform gives startups access to 250,000 investors. So far, they have helped raise over $100 million for 150+ startups.
Accepted startups receive $0 retainer from SeedInvest. They will pay all upfront costs which startups will pay with a $10,000 flat fee at closing. Startups are only charged with successful campaigns. SeedInvest will eat the upfront costs if campaigns are unsuccessful.
Other fees include placement fees and equity fees. Again, these are only charged for successful campaigns.
SeedInvest has a rigorous application process and only accept 1% of startups that apply. Startups need to meet the minimum requirements before moving forward. Startups need to have a minimum viable product (MVP), proof of concept and at least two full-time team members.
They also have a strong preference for technology and consumer-based businesses. So, if your hardware startup meets that criteria, SeedInvest is a great opportunity.
Equity Crowdfunding by Indiegogo
Built by the popular crowdfunding platform Indigogo, Equity Crowdfunding by Indiegogo is made to help startups raise funding for their businesses, not just individual products.
Startups get the option of raising capital through flexible or fixed funding goals. Flexible funding lets startups keep all money that was raised, and fixed funding requires the goal to be met before startups get the money.
You’ll also receive tools to help with marketing, promotion, fulfillment support and campaign management through different devices.
Equity Crowdfunding by Indiegogo charges a 5% platform fee when crowdfunding, and the platform is free for startups pre-launch.
Indiegogo offers additional services for entrepreneurs, so they can be your one-stop shop. Explore their directory for creative services, marketing services, prototyping, retail distribution, and website development.
Being built by a reputable company, this platform will pair great with your hardware startup.
UPDATE: This platform does not exist anymore since March 2019.
StartEngine
StartEngine is an equity crowdfunding platform ready to help startups raise capital.
With a creative team to help you design your campaign, you can attract investors from their community of 200,00 people. You’ll also have access to an account manager and a drag-n-drop feature to create the perfect campaign page.
Startups set their own terms with their investors who can invest easily through credit cards, ACH, bank wires and cryptocurrency.
For hardware startups to be accepted to StartEngine, startups need to be based in the US. StartEngine will also review startups based on revenue, team, customer engagement, previous funding, marketing budget, and market growth to see if your startup will have a fair chance in crowdfunding.
StartEngine is a good choice for startups looking to crowdfund their raises. There’s no listing fees and only a 6% charge from StartEngine after campaign success.
Best investment app for high-end investment management: Round
Investment apps are increasingly turning to robo advisors. Although Round uses an automated questionnaire to generate its users’ portfolios, it works with fund managers like Guggenheim Partners, Doubleline, and Gabelli to provide individual investors with access to institution-grade investments.
Round’s institutional managers lean heavily on alternative assets and strategies, including asset-backed securities, real estate, and merger arbitrage. No matter the account value, Round charges a 0.5% management fee. In the event of a negative return, however, Round waives its monthly fee.
Best investment app for minimizing fees: Robinhood
For investors who want to do it themselves and pay as few fees as possible, Robinhood is one of the best investment apps. With no commissions and a $0 account minimum, Robinhood cuts out most of the costs typically associated with investing apps.
Unfortunately, Robinhood users do make some sacrifices. Robinhood doesn’t offer any retirement accounts or managed portfolios, meaning all investments made through the app are taxable and self-managed. It’s relatively bare-bones for an investing app, but it’s the best way to trade individually for free.
Best investment app for student investors: Acorns
Every investor has to start somewhere. To cater to the fledgling demographic, Acorns provides free management for college students. Unlike most investing apps, it also offers a “spare change” savings tool, which rounds up purchases users make at select retailers. The difference between the balance due and the next dollar is then invested in the user’s Acorns account.
But be warned: Acorns’ flat fees can be stiff for those with smaller account balances. For $1, $2, or $3 per month — depending on the user’s account balance — Acorns offers a passive portfolio of ETFs.
Best investment app for data dissectors: E*Trade
Through the Power E*Trade app, do-it-yourself investors can buy into a wide range of assets. E*Trade’s stocks, mutual funds, ETFs, futures, and options are backed by its best-in-class research library. There, E*Trade provides interactive charts and expert studies. Users of the investing app can dig deep into earnings, dividends, company news, and metrics like debt-to-equity ratio.
In exchange for that data, E*Trade does charge steeper commissions, at $6.95 per trade, than many providers on this list. Due to its educational tools and array of assets, this investing app is a smart pick at the poles: Beginning investors will appreciate the help building a risk-aligned portfolio, while veterans will like its professional-grade investment options.
Best investment app for banking features: Stash
Like Acorns, Stash is one of the best investing apps for beginners. Where Stash stands out is its account options: For a flat $3 monthly fee, users get brokerage, bank, and retirement accounts. At the $9-per-month level, they also receive two custodial accounts, monthly investment research, a stronger rewards structure, and an upgraded debit card.
Stash requires just $5 to open an account, and users can purchase fractional shares in stocks and ETFs. Unfortunately, though, Stash only offers about 150 stocks and 60 ETF options. To make their holdings more obvious to beginners, Stash renames ETFs with monikers, such as “Clean & Green” for the iShares Global Clean Energy ETF.
Best investment app for customer support: TD Ameritrade
Another brokerage competing in the investing app space, TD Ameritrade doesn’t require a minimum investment. It does, however, charge a comparatively expensive $6.95 per trade. Options cost even more, with a $0.75-per-contract upcharge.
Why would users pay TD Ameritrade’s fees? Because its asset options and customer support are second to none. Traders can choose between stocks, bonds, ETFs, mutual funds, futures, foreign currencies, ADRs, and more. If they need help, they get 24/7 phone, text, and instant messaging support. And if that’s not enough, they can stop into one of TD Ameritrade’s 364 branch locations.
Best investment app for parents: Stockpile
Founded by a CEO who wanted to give his nieces and nephews something more substantial than toys for the holidays, Stockpile lets investors buy blue-chip stocks and ETFs via gift cards. Although this investing app makes sense for parents who want to pique their kids’ interest in investing, beware its fee structure.
For a standard trade, Stockpile charges $0.99. Gift cards, however, cost $2.99 for the first stock and $0.99 after that. And if you buy the gift card with a credit or debit card, expect to pay an additional 3%. Although kids may not care, Stockpile users can’t see company balance sheets or portfolio performance projections.
Best investment app for overspenders: Clink
If you’d rather shop than save, Clink may be the best investment app for you. By linking your credit card and bank account to the app, you can invest a percentage of recreational purchases. Alternatively, you can schedule a fixed amount to be transferred into your Clink account on a monthly or daily basis.
Clink investors currently pay no fees, nor do they need a minimum deposit. Instead, Clink collects receives kickbacks from the ETF sponsors offered. ETFs are currently Clink’s only asset option, unfortunately, and they’re only available in bundles based on the user’s risk tolerance.
Best investment app for total automation: Wealthfront
Similar to Betterment and other robo advisors, Wealthfront invests in passive portfolios and charges a management fee of just 0.25%. Though the investing app requires a $500 account minimum, it does support daily tax-loss harvesting or realizing losses to offset taxes on capital gains. The value of tax-loss harvesting is limited for everyday investors, but it remains popular among robo-advisor apps.
To make the most of Wealthfront, though, your balance needs to fall in its sweet spot. Unlike many robo-advised apps, Wealthfront doesn’t deal in fractional shares. Serious investors should look elsewhere, too: Although it does offer extras like the Wealthfront Risk Parity Fund to six-figure accounts for an extra fee, there’s no human management option or bonus for large balances.
Conclusion
Startups have been on the rise, and so too have the opportunities for new types of startups to invest in. In fact, the sheer number of startups, young businesses and cryptocurrency projects were astronomical from late 2019 until early 2020 before the massive crypto crash. So, due to this enormous space, there are a lot of different startup investing platforms, investment apps and cryptocurrency exchanges that investors can use to get into the crypto space.