Crowdfunding has grown significantly in the last few years, especially in the United States and Europe. The equity crowdfunding market is valued around $1.7 billion annually with total value of deals invested per year to growth to reach $5 billion by 2022. Much of this growth can be attributed to developing countries adopting equity crowdfunding for their new businesses. Currently, developing countries, such as Africa and South America, have the highest percentage of individuals starting their own businesses with Nigeria having as high as 40% of total businesses. The problem for these startups is the lack of access to traditional banking. In turn, these startups have to get creative, which is why most will turn to equity crowdfunding as a way to raise capital. The World Bank has estimated that there is chance to reach up 334 million people in emerging economies through crowdfunding.
Read more5 Ways to Make Money With Investments In Agriculture
There are many reasons to invest in agriculture: it is a low-risk investment that keeps pace with inflation and increases in value over the long-term, it is a tangible asset that provides benefit to the community, and it can diversify a portfolio. But how exactly does an investment like this make money? Depending on the investment and the type of farm, investors can profit through several different ways. We’ve covered five of the most common ways agriculture generates returns below.
Read moreWhat is a PPM and why should I read it?
In many cases, private equity companies want to increase their level of growth without taking on debt or going public. If, for example, a company decides to scale up its operations, it can look to a private equity offering as a way to finance the expansion. When this happens, the business first decides how much capital it needs to raise and at what entry price. The company begins by working with a securities attorney to structure the offering. This is very different from an initial public offering (IPO), where anyone in the public can purchase equity (stock) in the company. A securities offering exempt from registration with the Securities and Exchange commission (SEC) is sometimes referred to as a private placement.
Read moreDiversifying Through Private Loans Instead of Bonds
A question among most investors today is, “How can I better diversify my portfolio for yield while focusing on capital preservation?” Most money managers will suggest bonds; traditionally, bonds have been a great source for yield because they have a lower risk of default. However, bonds are not as attractive to investors today as they once were since yields are extremely low in the U.S. According to Aberdeen Standard, a traditional balanced investment portfolio of equities and fixed income would be forecasted to deliver a return of around 3% versus an average of 7% over the last 20 years. The simple answer of the question above of how to diversify a portfolio is to get innovative.
Read moreFollowing Food Demand - Investing in Protein
Doing a quick Google search of "best way to lose weight," the first suggestion that pops up is "eat a high-protein breakfast." With a few more searches on weight loss and dieting, high-protein seems to be a common phrase in many headlines, including Which High-Protein Diet Is Best: Atkins, Dukan, or Ketogenetic? These diet trends are constantly talked about in news articles and on social media, and they don't seem to be going away any time soon. Protein, in many forms, is in high demand from consumers, and now is the time to cash in on it.
Read moreHappy Animals, Smart Investment
A common misconception about animal agriculture is mistreatment. Those unfamiliar with how the animals are raised have often heard they're treated badly, cruelly, or unfairly, when it's really quite the opposite. Organizations like Global Animal Partnership (GAP) and Animal Agriculture Alliance, have come together with the purpose of continually improving farm animal welfare and producing animal products of the highest quality. These programs can also benefit investors who take advantage of the pricier meat that humane livestock ranchers produce.
Read moreEquity Crowdfunding in Agriculture - Connecting Women Around The World
The female farmer may be regarded as a rarity, but we know women play a larger role in agriculture production than many think. Worldwide, more than 564 million women participate in agriculture, and nearly half of the agricultural labor force in developing countries is female. In the same stride, 30% of U.S. farmers are women, yet the face of farming is typically that of a man. Women make a strong contribution to food security and nutrition, at both the household and community levels.
Unfortunately, in some parts of the world, female farmer production is limited by barriers to finance, inputs, and extension services, as well as land ownership and rights. A common problem for most farmers in developing countries is limited access to capital, like bank loans. A recent solution developed to fill that gap is equity crowdfunding.
Read moreDebt-Based Crowdfunding 101
Generally, crowdfunding capital raise is structured as either equity or debt. Equity is issued as stock, representing a form of ownership in a company with no defined maturity date. On the other hand, debt capital is raised in the form of a loan or promissory note to be paid back at some point in the future, usually with a fixed interest rate. Debt offerings on equity crowdfunding platforms tend to be open for a shorter duration. Let's discuss the basics of debt-based crowdfunding and why investors should consider using debt instruments to better position their portfolio against market volatility.
Read moreBeef Production: Grass-Finished Beef vs. Grain-Finished Beef
When you roll your cart up to the meat cooler at the grocery store, chances are you've seen a wide variety of beef. Aside from the different cuts, there are many labels about how the beef was produced. Even ground beef has a plethora of options to choose from: grass fed, organic, naturally-raised, and the list goes on. But what do these labels mean? Aren't all cows fed grass in the pasture? Yes, they are, but it's the feeding during the middle and end of their production that makes the difference.
Read moreTop 4 Myths About Indoor Fish Farming
When it comes to indoor fish farming, there are many misconceptions. From sustainability to taste, there's faulty understanding in the facts. We've debunked the top four myths about indoor fish farming.
Read more3 Ways to Measure Agriculture Investment Returns
Harvest Returns' opportunities are structured in a variety of ways that produce different return profiles. Here are three of the most common metrics used in evaluating an investment as with an explanation of their advantages and disadvantages.
Read more4 Reasons Why Millennial Women Should Begin Investing Early
According to Franklin Templeton Investments' survey of investors, 60% of Millennial women would delay retirement if they were unable to retire as planned due to insufficient funds. On average, working Americans expect to retire at age 66, reports U.S. News, but the actual average retirement age has hovered around 60 for the past decade or so. So why are young adults expecting to retire so late, and willing to relay that retirement even more, if there's something Millennials can do about it now? Here are four reasons why it's important for Millennial women to begin investing early.
Read moreUnderstanding the Coffee Investment Market
Coffee is one of the most traded and well-known agricultural commodities. Even though there are a variety of different coffee plant types, the two most prominent coffee varieties are Robusta and Arabica. About 75% of the world’s coffee production is Arabica and roughly 25% is Robusta.
Read moreAlternative Investments in Agriculture Fight a Bleak Bond Market
Fixed-income security has been a good way historically to diversify a portfolio and lower exposure to stock market volatility, but 2018 may prove to be the year to exercise caution and rethink one’s investment strategies.
Read moreWays to Diversify Your Agriculture Portfolio
If you are convinced that investment agriculture is a good way to diversify your overall portfolio — and we hope you are — then how do you properly allocate your investments across different types of deals to maximize your returns and safeguard your principal? Agriculture is a hugely diverse investment class, offering many ways to spread your risk among various projects.
Read more3 Reasons Indoor Farming Is The Future of Agriculture
World hunger and food security remain pressing issues in today's society. With a diminishing amount of farmable land and an increase in global population, indoor agriculture can help with the challenges that lie ahead. Indoor agriculture will play a key role in meeting the need for more food, and the technologies these facilities adopt will open up a wealth of capabilities, jobs, and alternative investment opportunities that redesign both urban and agricultural landscapes.
Read moreInvest in Aquaculture to Feed the World and Save the Oceans
High tech indoor aquaculture operations can increasingly meet the world's growing demand for fish-based protein in a profitable and sustainable manner.
Read moreHelp Feed the World: Impact Investing in Agriculture
Impact investing has become increasingly popular within the last decade. The growing impact investment market provides capital to address and help find a solution for the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education. These investments tackle global challenges that were previously supported by philanthropic donations, which are still important, but missing a monetary return component. Impact investing offers diverse and viable opportunities for investors to advance social and environmental solutions through investments that also produce financial returns.
Read moreInvesting in Novel Agriculture Production Systems
Soil-based agriculture has dominated food production for tens of thousands of years. In recent years, so-called "novel farming systems" have become more prevalent. Many of these farming methods -- often involving Controlled Environment Agriculture (CEA) -- are capital intensive to start-up. Funding for these projects can be hard to come by from traditional agriculture lending sources who do not understand how to underwrite them. But for investors who want to play a role in the future of global food production, CEA projects can offer higher risk-adjusted returns. According to AgFunder's 2017 "AgriFood Tech" report, investments in novel farming systems jumped 223% from the previous year. Some examples of novel farming systems are described below.
Read moreEgg Production Practices – There's an Egg for Everyone
Today's egg farmers have curved production with consumer demands. There are a plethora of production practices, hen breeds, egg quality and egg sizes that go into consideration when eggs are being produced before their trip to the grocery store for consumption. Egg farmers work hard to provide consumers with the highest-quality variety of eggs, no matter what kind of eggs they choose.
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