Mainvest

Mainvest

5.0

(3 Reviews)

Lending

Mainvest

Mainvest

5.0

Lending

Invest in Main Street, not Wall Street. Put your money into real brick & mortar businesses that agree to share a percentage of their revenue each quarter in exchange for your investment.

Join investors

Highlights

Auto Track Available

4.5% - 12%

Asset Class Return1Y

#21 Rank

In Lending30d

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Invest from

$100

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Mainvest Review

autor

Christy Rakoczy96 days ago

Mainvest lets you invest in Main Street instead of Wall Street by simplifying the process of investing in vetted small businesses.

Receive $20 credit when you sign up and connect a bank account!

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Overview

Discover local businesses, review their business plans and financial statements, chat with the owners, and invest with as little as $100. With Mainvest you invest with revenue sharing notes. Businesses agree to share a percentage of their revenue each quarter in exchange for investment. Revenue is shared until investors receive their target return. If investors haven’t received this amount by the maturity date, the remaining amount is owed to them as a balloon payment.

Things to Know

  • You make money on

    Interest

  • Fees

    0%

  • Min Investment

    $100

  • Payout frequency

    Monthly

  • Term of investment

    60+ months

  • Target Return

    10% - 25%

  • Liquidity

    Hard

  • Open to

    All Investors

  • Mobile Application

    No

Top Perks

  • Make a difference in your community

  • Invest in real brick & mortar businesses

  • Revenue is shared until investors receive their target return

How you make money

Businesses agree to share a percentage of their revenue each quarter in exchange for investment. Revenue is shared until investors receive their investment multiple. If investors haven’t received this amount by the maturity date, the remaining amount is owed to them as a balloon payment.

How Mainvest makes money

Mainvest doesn’t charge investors any fees, but does charge issuers a percentage of the amount raised (typically 6%). Investors should understand this reduces the amount of capital the business actually receives for operations.

Is it safe?

Mainvest has received an A+ rating on the Better Business Bureau website, and has been the subject of zero consumer complaints on the site. To date, they have raised $3 million from 5 investment partners in a seed round of funding.

 

They are diligent in making sure that offerings on the platform do not raise investor protection concerns. Once an investment offering is reviewed by Mainvest staff, the next step is to go through what is called a "Bad Actor Check" or "BAC." The BAC is a limited background check, conducted through a reputable third party, of a business, its managers and officers, and any beneficial owner of more than 20% in the business. The BAC primarily focuses on regulatory disqualification provisions, which automatically bar an issuer from raising under Regulation Crowdfunding - a "Red Flag". The BAC can also shows other publicly filed information, such as liens or lawsuits, that could impact a business operations - a "Yellow Flag". Once an offering is launched, Mainvest continues to review any additional information as it becomes available, and reviews any negative information to determine if there is an investor protection concern or risk of fraud. While every offering contains risk, Mainvest's staff works diligently to make sure that each offering's risks are properly disclosed.

 

If investors haven't received their target return on investment by the maturity date, one of two things will happen: 

  1. Balloon payment: In this scenario, the business would pay their investors the amount remaining towards the target return on investment. For example, if you invest $100 in a business that is offering a target return on investment of 50% and you have only received $125 dollars of shared revenue by the maturity date, the business may provide you with a balloon payment of $25.
  2. Remain in default: If the business does not provide a balloon payment, they will remain in default. Interest will accrue and compound on the amount owed. Investors (or a representative they agree upon) could pursue legal action to force repayment or bankruptcy. Mainvest does not pursue legal action on behalf of investors. Investing in private businesses involves risk. It is possible that you would not receive payments from the business in this scenario.
  • Established

    2018

  • Country Available

    Worldwide

  • Assets Managed

    n/a

How You're Taxed

Income Tax

Income Tax

Profits earned from P2P Lending are taxed at ordinary income tax rates. This means that profits are added to your total income for the year.

You can receive income from P2P lending tax free if you invest using certain accounts.

Reviews

5.0
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Reviews (3)
R

Rob Audroué

Investing with Mainvest has felt more "real" and "authentic" than other platforms I've invested with.

N

Nicholas Ferguson

Great platform and great opportunities. I use mainvest as a way to diversify in addition to my traditional stocks and bonds.

T

Tim D.

Mainvest is an incredible platform to support small local businesses. Additionally, it's a good platform to gain unique exposure in more esoteric industries (i.e. breweries, etc.). The ease of use relative to similar platforms is second to none. They make it as easy as possible to view opportunities, to invest, and to view your existing portfolio.

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