Our Equity Crowdfunding Campaign Empowers Women and Minorities to Invest
Only 3% of Americans qualify to invest in startups that don’t offer crowdfunding -- fewer than 23% are women, less than 4 percent are black or Hispanic and only 8 percent are 40 years old or younger
We’re thrilled to let you all know that we’re raising money through equity crowdfunding on StartEngine so that we can allow more women and minorities to invest in our social media network and build wealth like the 1% have been doing for decades. As a reminder, MentalHappy, backed by Y Combinator (one of the most respected startup accelerators in the U.S.), provides people with a safe and secure platform to talk about the challenges they face in their daily lives, receive support from peers who understand these stressors, and learn practical tips and techniques to help members heal and improve their emotional fitness each day.
“I chose to raise funding for MentalHappy through equity crowdfunding for one reason: inclusion,” said our fearless founder and CEO Tamar Blue. “I built our social network on the foundation of inclusion because we believe happiness and mental clarity are a right, not a privilege and that no one should be denied access to emotional wellness support because of high costs, limited access or because they feel uncomfortable talking about the tough issues with the people around them. This same principle applies when deciding who we allow to invest in our startup.”
Founders who don’t raise money through crowdfunding severely limit who can invest in their company. They are only able to accept investments from institutional investors, like venture capital firms, and from angel investors. Angel investors are individuals who are deemed as accredited, meaning they make $200,000 a year as an individual ($300,000 as a couple) or have a net worth over $1 million. Most angel investors are white men, with only a small percentage of women and minorities falling into that category. In fact, a study conducted by the Angel Capital Association and Wharton Entrepreneurship, shows that angel investors are 78 percent male, 87 percent white and their average age is 58. Only 22 percent of angel investors are women, less than 4 percent are black or Hispanic and only 8 percent are 40 years old or younger.
With equity-based crowdfunding, members of the crowd become part-owners of the company that is raising funds. In other words, the company sells some or all of its shares to the members of the crowd. As equity owners of the company, the crowd realizes a return on its investment and receives a share of the profits in the form of a dividend or distribution. Prior to 2016, only three percent of Americans were legally allowed to invest in startups.
Traditionally, investors were required to have a net worth of $1 million or earn $200K per year and the investment minimums started in the 5 or 6 figures. People who meet these requirements are known as “qualified investors.” Equity crowdfunding makes it possible for anyone to invest.
Unlike popular crowdfunding platforms used by individuals to secure donations, startups raising money through regulation crowdfunding (Reg CF) must undergo thorough vetting and meet stringent requirements from the U.S. Securities and Exchange Commission (SEC).
These requirements include:
“In my mind, crowdfunding wasn’t optional,” said Tamar. “Lack of inclusion is a leading cause of stress, anxiety and feelings of hopelessness – all of which MentalHappy is dedicated to helping people overcome. I am part of the solution and cannot be part of the problem. I decided to raise capital for MentalHappy through equity crowdfunding because it’s the only option available to founders like me who want to empower women, minorities and young people to take control of their wealth by giving them access to investment opportunities.”
Click here to view our original press release on PRWeb.
For more information on MentalHappy and its equity crowdfunding campaign, please visit: https://startengine.mentalhappy.com/crowdfunding.