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Join the SuperCrowd with Impact!

Watch the SuperCrowdHour Right Here Live at 1:00 PM Eastern

Unlocking the Secrets of Profitable Impact Investing Focusing on Yield

In a world increasingly focused on creating positive change, impact Crowdfunding has emerged as a powerful tool for aligning investments with values. Imagine building a portfolio that not only yields returns comparable to the stock market but also drives social good. That’s the promise of impact crowdfunding. In the upcoming SuperCrowdHour webinar, we’ll dive into the strategies, tools, and insights that can help you achieve this balance.

Watch the live webinar at 1:00 Eastern/10 AM Pacific in the embedded YouTube video player above, or click here to watch on YouTube, where you can submit questions as comments on the video that I’ll answer live. You can also submit questions by clicking here—before, during or after the event.

The Stock Market: A Benchmark for Returns

For decades, the stock market has delivered consistent, long-term returns of around 10 percent annually. The S&P 500, a benchmark comprising 500 of the largest companies, underscores this performance. However, short-term volatility is a given. Year-to-year swings can range from exhilarating highs to gut-wrenching lows.

Even the savviest investors struggle to predict market turns reliably. The Great Recession, for instance, saw the S&P drop by nearly 57 percent over 17 months, testing the mettle of even seasoned market participants. While index funds offer a straightforward way to achieve market returns, fees and emotional decision-making can erode gains.

In the SuperCrowdHour, we’ll explore how impact crowdfunding provides an alternative that marries consistent returns with meaningful impact.

What is Impact Crowdfunding?

At its core, impact crowdfunding is about using your investments to drive positive change while earning a financial return. It allows investors to support causes they care about—whether social justice, climate change, or community revitalization—through platforms that democratize access to capital.

Impact crowdfunding encompasses investments in minority founders, women entrepreneurs, LGBTQ innovators, and ventures with a clear social or environmental mission. Gail and I have personally invested in startups like Aptera, a company developing ultra-aerodynamic, solar-powered electric vehicles. This investment aligns with our focus on environmental sustainability while offering the potential for substantial financial returns.

The beauty of impact crowdfunding lies in its versatility. You can prioritize causes that resonate most deeply with you, whether advancing renewable energy, supporting underserved communities, or improving global health outcomes. The upcoming SuperCrowdHour will explore these themes, providing real-world examples and strategies.

Understanding Term Loans: A Cornerstone of Impact Investing

Term loans are the backbone of many impact crowdfunding strategies. Much like the loans used to Finance cars or homes, term loans in crowdfunding involve fixed interest rates, defined terms, and predictable payments. Typically ranging from two to five years, these loans offer interest rates between 9 and 15 percent, making them an attractive option for investors seeking cash-on-cash returns.

When you invest in a term loan, you’re buying a fraction of a larger loan extended to a business. For example, a $100 investment in a $100,000 loan might yield $2.13 in monthly payments over five years. While economic downturns can increase defaults, repayment rates have remained strong during recent years of Growth.

For those new to impact crowdfunding, term loans provide a straightforward entry point. They offer transparency and predictability, making them an excellent foundation for building a yield-focused portfolio.

Join the SuperCrowdHour webinar to gain a deeper understanding of how term loans work and why they’re a compelling option for impact investors.

Building a Portfolio That Matches or Exceeds Stock Market Returns

The key to successful impact investing lies in crafting a diversified portfolio. By focusing on term loans and adhering to a disciplined strategy, you can achieve returns comparable to the stock market while minimizing risk. There are two primary approaches to consider: the hobbyist and the maven.

Hobbyist Approach

If you’re seeking a low-commitment way to engage with impact crowdfunding, the hobbyist approach may be for you. By investing $100 monthly in term loans with average returns of 10 percent, you can build a self-sustaining portfolio within two to three years. As repayments accumulate, you can reinvest those funds without contributing additional earned income. This creates a self-funding hobby that combines financial growth with the joy of supporting meaningful causes.

Maven Mode

For those aiming to build significant wealth through impact investing, Maven Mode offers a path to expertise and substantial financial gains. Consistent monthly investments, coupled with compounding returns, can yield impressive results over the long term. For instance, investing $100 per month at an average return of 10 percent can grow to over $226,000 in 30 years, even though the total out-of-pocket investment is just $36,000.

Maven Mode requires diligence. Successful mavens scrutinize financial statements, evaluate business plans, and assess management teams with care. By honing these skills, you can identify high-quality investments that align with your values and financial goals.

Managing Risks in Impact Crowdfunding

Like any investment, impact crowdfunding comes with risks. Economic downturns may lead to higher default rates, and not all ventures will succeed. Diversification is essential to mitigate these risks. By spreading investments across different sectors, geographies, and business types, you can reduce exposure to individual failures.

Moreover, due diligence is critical. The upcoming SuperCrowdHour will provide practical tips for evaluating crowdfunding opportunities, from understanding financial metrics to assessing social impact.

The Promise of Impact Crowdfunding

Impact crowdfunding offers the best of both worlds: the potential for competitive financial returns and the satisfaction of driving positive change. Whether you’re supporting minority entrepreneurs, advancing renewable energy, or revitalizing communities, your investments can make a tangible difference.

The SuperCrowdHour webinar is your opportunity to dive deeper into this exciting investment frontier. With practical insights, real-world examples, and actionable strategies, the session will equip you to build a portfolio that reflects your values and meets your financial aspirations. Don’t miss this chance to unlock the secrets of profitable impact investing.

I hope to see you there!

Support Our Sponsors

Our generous sponsors make our work possible, serving impact investors, social entrepreneurs, community builders and diverse founders. Today’s advertisers include FundingHope, the American Independent Business Alliance, Digital Niche Agency and Crowdfunding Made Simple. Learn more about advertising with us here.

The SuperCrowdHour sponsors include Max-Impact Sponsor Digital Niche Agency, Impact Sponsors ProActive Realty Group and Crowdfund Holdings Innovators, Supporters Rotary, AMIBA, Ridgecrest Herbals, Move the Needle with Rob Kaplan, and co-Hosts Crowdfunding Professional Association and the National Coalition for Community Capital (NC3).

Max-Impact Members

The following Max-Impact Members provide valuable financial support:

Carol Fineagan, Independent Consultant | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Paul Lovejoy, Stakeholder Enterprise | Pearl Wright, Global Changemaker | Ralf Mandt, Next Pitch | Scott Thorpe, Philanthropist | Add Your Name Here

Upcoming SuperCrowd Event Calendar

If a location is not noted, the events below are virtual.

• SuperCrowdHour, January 15, 2025, at 1:00 PM Eastern. Devin Thorpe will be doing investor-focused training on building an investment strategy focused on investing in debt instruments to match or even exceed stock market returns. This is great for people serious about investing, whether you are starting with $100 or $100,000. Don’t miss it!

• Impact Cherub Club Meeting hosted by The Super Crowd, Inc., a public benefit corporation, on January 21, 2024, at 1:00 PM Eastern. Each month, the Club meets to review new offerings for investment consideration and to conduct due diligence on previously screened deals. To join the Impact Cherub Club, become an Impact Member of the SuperCrowd.

• SuperCrowdLA: we’re going to be live in Santa Monica, California, May 1-3. Plan to join us for a major, in-person event focused on scaling impact. Sponsored by Digital Niche Agency, ProActive Real Estate and others. This will be a can’t-miss event. More details to come soon!

Community Event Calendar

• Successful Funding with Karl Dakin, Tuesdays at 10:00 AM ET – Click on Events

• Community Capital Live, Havell Rodrigues, New Majority Capital, January 15, 2:00 PM Eastern.

• Motivated Money Method for Raising Funding Workshop, January 16, 11:00 AM – 3:00 PM Eastern.

• RootsCamp, A powerful and unique (un)conference in Baltimore for progressive organizers to reflect on the election and share lessons and strategies to build our future, January 23-25th.

• Community Capital Live, Bernel Hall, New Jersey Community Capital, January 29, 2:00 PM Eastern.

• Igniting Community Capital to Build Outdoor Recreation Communities, Crowdfund Better, Thursdays, March 20 & 27, April 3 & 10, 2025, at 1:00 PM ET.

• NC3 Changing the Paradigm: Mobilizing Community Investment Funds, March 7, 2025

• Asheville Neighborhood Economics, April 1-2, 2-25.

If you would like to submit an event for us to share with the 8,000+ members of the SuperCrowd, click here.

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Originally Published on https://www.superpowers4good.com/

Devin Thorpe Champion of Social Good

Devin is the CEO of The Super Crowd, Inc., a public benefit corporation helping diverse founders and social entrepreneurs raise capital via impact crowdfunding. He is also a bestselling author who calls himself a champion of social good. His most recent book, How to Make Money with Impact Crowdfunding, is an investment guide for everyone. He has produced about 1,500 episodes of his show featuring luminary change agents, including Bill Gates. His books—read over 1 million times—help people do more good. He has helped nonprofits raise millions of dollars via crowdfunding. He draws on his experience as an investment banker, CFO, treasurer and U.S. Senate staffer. He earned an MBA at Cornell. Frequently finding himself on airplanes, Devin is grateful to be middle-seat-sized.