OurCrowd Review

Basics

Platform Name: OurCrowd
Type of Plan: Equity
Application Process: Yes
Fees for Completed Campaign: 2% for 4 years on invested capital
Fees for Partial Campaign: No
Transaction Fees: 3%

Features

  • Build a startup portfolio with low minimum investments
  • Invest alongside experienced investors

Screenshots

Exclusivity and Investment in Israeli Start-ups Offered by OurCrowd

 

For angel investors of the future who are frustrated by the low level of quality in most equity crowdfunding sites, there are new and sophisticated options made possible by OurCrowd. Founder Jon Medved is no stranger to the regulations and possibilities of venture capitalism, and he’s aiming to open up a specific segment to the crowdfunding populace: Israeli start-ups. Israel is known for its high-tech companies and research and development centers, and ranks just under North America and China in is quality stock listings. Israel is also known for its multi-million dollar start-ups, such as Given Imaging and Trusteer, that get bought by larger companies in the United States or in Japan. You’ll have to have at least $10,000 and a significant net worth or annual cashflow to join this slightly exclusive club, but being part of the accredited in-crowd does have significant benefits.

To invest in startups, one must either be intrigued by the concept of new ideas, or remember what it was like to need funding for the next greatest idea. With much more money on the line than is usual in the crowdfunding world, you’d expect companies in the OurCrowd portfolio to appear in the headlines – and so they do. Surgical Theater was able to raise just under $600,000 in 2013 for its medical technology, which enables doctors with upcoming delicate operations to engage in practice rounds of surgeries and constructive feedback from other doctors. A one-year anniversary saw OurCrowd close out on funding for 33 Israeli companies, to the tune of $35 million. Over 35% of the companies opened up additional funding rounds for those wanting to invest in Israel, while nearly half of the companies were able to raise upwards of $1 million. OurCrowd is the place to go for those who believe that quality and quantity should have a good exclusive meeting ground.

Mentorship and accreditation are two concepts that set apart OurCrowd from those who have the desire to invest in startups, but don’t have the finances or experience to make it work. Instead of allowing companies to be funded and then throwing them out into the shark-infested waters of commerce to see if they sink or swim, OurCrowd provides a board member for mentorship and direction. Also, not only is each investment formed with a limited partnership – to prevent inexperieced investors from distracting potentially inexperienced startup leaders – but also OurCrowd does invest its own management funds while managing pre-negotiations and paperwork.

Nor is the financial gravitas centered around just one heavy hitter who’s contributed to 12 startups worth over $100 million. Alongside Jon Medved, Our Crowd team members include capital-building Geoff Levy, who previously helped build up Investec Bank Australia as its CEO, besides remaining Chairman of Monash Private Capital. On the website, Levy cautions investors to only offer up ‘the kind of money you can afford to lose’, since technological start-ups are still quite high-risk opportunities with potential for fantastic returns and equally fantastic could-have-been returns. If you have been wondering when it might be time to invest in Israel with an extra $10,000, now might be your chance.