Crowdfunding ROI Calculator
Model equity and real estate crowdfunding returns including portfolio diversification, default/failure rates, and platform fee impacts.
Startup Equity Portfolio Return Modeler
Model expected returns from a diversified startup equity crowdfunding portfolio.
Real Estate Crowdfunding Return Calculator
Model returns from real estate crowdfunding including income distributions and appreciation.
Crowdfunding vs. Index Fund Comparison
Compare crowdfunding total return against a passive S&P 500 index fund over the same period.
Crowdfunding Investment: Democratized Access With Real Risks
The JOBS Act of 2012 and subsequent Regulation CF (2016) and Regulation A+ rules opened startup investing to non-accredited investors for the first time. Platforms like Republic, Wefunder, and StartEngine now allow investments of as little as $100 into early-stage companies. Meanwhile, real estate crowdfunding platforms (Fundrise, CrowdStreet, RealtyMogul) have enabled retail investors to access institutional-quality commercial real estate deals with minimums starting at $10–$25,000.
The Power Law of Startup Returns
Startup equity returns follow an extreme power law: a small percentage of investments return 10–100x while the majority return zero. A $50,000 portfolio of 25 startups ($2,000 each) might see 15 fail completely (lose $30,000), 8 return 1–2x (recover $20,000), and 2 achieve 8–15x returns ($32,000–$60,000). This distribution means the portfolio could return $52,000–$80,000 on a $50,000 investment — 4–60% total return over 7 years. Diversification (20+ investments) is essential to reliably capture the power law winners.