It’s almost 2021, and never have we been so ready to “turn over a new leaf” and rethink some things.
Vicinity Capital is helping local-loving Greenvillians rethink retirement savings and investing. Before you doze off though, “rethink” also means making this whole investing thing a lot more interesting.
With as little as $100, Greenvillians can ditch the dumpster fire of 2020 while potentially fanning the flames of growth in both our community + their bank accounts.
Investing differently doesn’t mean rolling your life savings into a single company. With Vicinity, you can start small and still diversify some investment dollars (see how smart you’ll sound?) across multiple local companies with different types of investments.
Instead of reacting to whatever next year brings, with local investing, you can get back in the driver’s seat, building a better Upstate, one microinvestment at a time.
The skinny on debt + equity:
- Cash Flow: A common type of investment on Vicinity Capital is a Revenue Sharing note. This focuses on sharing in the cash flow of the business through quarterly payments based on their revenue. This is a debt investment with a set payback amount. See examples here and here.
- Upside: Investments for equity (or future equity) generally focus more on the upside of an investment. Your potential return is based on a successful “exit” (like an acquisition or IPO).
Tips for analyzing risk when investing:
- Read the risks to learn what challenges your investment may face (with Reg CF, issuers are legally required to publish known risks on their campaign page).
- Identify your personal motivations for investing, and understand how those motivations align with the businesses you’re interested in investing in.
- Make calculated decisions – once you understand the risks, compare them to the possible reward + decide if it’s still worth it.
- Diversity your investments to help protect your portfolio if a deal goes bad, even when investing locally.