Rocket Dollar’s latest company partnership offers investors seeking short-term tax-deferred investment options the ability to create strong social impact among women-led businesses as well.
EnrichHER is an online crowdfunding platform that can provide up to $1 million in financing and operating capital to allow carefully-vetted women-founded businesses to grow and scale. EnrichHER is registered with the Securities and Exchange Commission as a funding portal and is a member of FINRA.
Investment Opportunities are Carefully Screened and Vetted
Roshawnna, EnrichHER’s chief executive officer, says the company receives more than 250 requests each week from women-founded businesses across the U.S. that want to be listed on the online crowdfunding platform.
The selection process is demanding, though. For starters, every company listed on EnrichHER’s online platform must generate more than $100,000 in annual revenues and have been in business longer than one year, says Zolnierz, EnrichHER’s director of client acquisition.
Additionally, EnrichHER uses machine-learning techniques that include an artificial intelligence-based scoring algorithm to assess traditional business and financial metrics, as well as the strength of each entrepreneur’s digital footprint. Only a select handful of companies that successfully meet certain criteria are offered to investors through the online platform.
Vetted companies are traditional revenue-generating companies that operate in a variety of sectors, including professional services, consumer products, and health and wellness. Once entrepreneurs pass the vetting process they work with the EnrichHER team to create a business story, executive profiles, and post key financial data online for easy investor review. Potential investors also can chat with entrepreneurs to answer any questions they may have through the EnrichHER platform.
“We focus only on revenue-generating companies,” Novellus says. “They have cash flow, so they can repay investors. We do not fund idea-stage companies; they have to have a track record of revenue and be a strong company that can pay back loans quickly.”
Crowdfunding Investments Range in Scale From $100 to $1 Million
EnrichHER launched its first funding campaign in March for an IT consultancy that needed to raise additional working capital to provide training for key staff members. The business received full funding in less than 24 hours.
“Our vision is to help women-led businesses in all types of industries enjoy the same success story,” Novellus says.
Rocket Dollar investors can benefit from additional investment opportunities in women-led companies that have been carefully screened for their ability to repay investor capital. It’s another way to create a diversified portfolio of tax-deferred income, especially for investors seeking short-term options.
Investments start earning returns within 30 days, with most loans repaid over the course of a year, though terms can run between six months and three years, Zolnierz says. Returns are targeted between 8 and 20 percent. Investors often recycle returns into additional investments on the EnrichHER platform, Zolnierz adds.
All investment dollars are held in escrow until the funding campaign closes, and upon completion, each investor starts earning returns within a month’s time. Payments are split between interest and principal during the course of the loan.
The majority of investors who’ve accessed crowdfunding opportunities through EnrichHER are socially conscious investors seeking short-term returns, Novellus says.
“Having a really diverse portfolio is very important, especially in today’s world where there’s a lot of uncertainty,” she says. “We have a really streamlined process to make sure that the companies that do go live on our platform are highly qualified. We are helping empower the next generation of female entrepreneurs by creating opportunities for investment and prosperity in their growing companies.”