Share your Investment crowdfunding success stories 📈

Have you had a successful investment using an online investment crowdfunding platform? Share your story here!

  • What was the investment?
  • Why did you choose it?
  • What was the outcome?
  • What (if anything) would you do differently next time?
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One of my best performing investments so far was a litigation finance offering from LexShares. It was a commercial lawsuit, with a bee farmer suing a neighboring business for putting down chemicals that killed his bees. The case settled after about a year and a half, resulting in a 78.3% total return (after fees) on my initial investment.

I really like litigation finance as an asset class, though next time will probably look for one of LexShares’ funds that invests in multiple cases for some diversification.

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I have been very pleasantly surprised with the user-interface and ease of access and wide variety of investment sizes available at Royalty Exchange. Based on finding them on Yield Talk I wrote about them at the beginning of my journey looking into music royalties. I’ve bought 3 different royalty portfolios in the past two years. It will probably be another 5 years whether I know for sure they are winners or losers, but at least the transactions are transparent, full of data, plentiful, easy to access, etc. Its highly likely to be non-correlated with other investments I’ve done as well. I consider those parts to be successes.
Anybody else have experiences with them?

Welcome to the community @michael! Glad to hear you found an interesting new investment option through YieldTalk. Your post hit on one of the best things about alternatives like music royalties: they aren’t correlated with the stock market:

As an investor, I like that the performance of my European “soul, funk, jazz-fusion and dance” song catalogue will likely not correlate with other investments I own, like stocks that respond to interest rates, earnings and economic trends, or like my house, which responds to local real estate trends.

I’ve spent much of my career in and around book publishing, so I can appreciate the value (and the risk) in ongoing royalty streams, and I also really like that these are open to all investors, not just accredited ones.

Out of curiosity, have you started receiving payments on your investments? How is the reporting?

– Andrew

It seems Yieldstreet, similar to LexShares, is only for accredited investors. Is there something similar for unaccredited investors?

Welcome to the Community @raquel!

You are correct that currently both YieldStreet and LexShares are only open to accredited investors. I’m not aware of any platforms currently offering litigation finance investments to non-accredited investors.

That said, I can think of at least 3 reasons to be optimistic:

  1. Quite often, the first platforms within a particular asset class are aimed only at accredited investors. Then, over time, new ones enter with offerings open to everyone. It may just be a matter of time before the same thing happens with litigation finance
  2. The SEC made some changes recently to the definition of an accredited investor beyond just net worth and income, and all indications are that they will be expanding ways for investors to qualify as accredited, specifically through some form of dedicated exam. @brian1 is on the board of the CFPA, which I believe is advocating for an investor accreditation exam, and may be able to offer some additional detail.

All that said, there are more options now for non-accredited investors than ever before. And while there may not currently be any options for litigation finance investments, you can find a list of 60+ platforms that are open to non-accredited investors right here (just check the box on the left under “Accepts Non-Accredited Investors”).

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Thanks so much Andrew. I just discovered Yieldtalk less than a month ago. It has been extremely helpful as my partner and I work to build a platform targeting the African diaspora across the U.S. with investments into Africa-based asset classes.