LocalstakeNC, the new crowdfunding platform launching today in North Carolina, is designed to help investors interested in backing startups as well as entrepreneurs looking to raise funding.
Triangle investor Mark Easley announced the launch of the new site on Tuesday.
It also offers ways for startups to raise funding.
Here are the four ways the platform can help people wanting to make in investment.
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Revenue Share Loans
Used by: Growing, post-revenue businesses looking to expand.
How it works: Investors loan funds and share in a percentage of cash received from every sale made by the business until they earn a maximum return.
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Preferred Equity
Used by: Startups and later stage businesses.
How it works: Investors receive a share of the ownership of the business by investing directly or through a pooled entity.
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Convertible Debt
Used by: Early stage businesses planning on raising equity financing again in the future.
How it works: Investors loan funds to the business which convert to equity at a discount to the price of the next round of equity financing.
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Traditional Loans
Used by: Businesses of all stages.
How it works: Investors loan funds to the business which are paid back based upon a predetermined schedule of principal and interest.