How to Make Money with Impact Crowdfunding: Your Guide to Investing Profitably to Support Diverse Founders, Social Entrepreneurs and Community Builders

By Devin Thorpe

Unlock the secrets of making a difference while securing your financial future with "How to Make Money with Impact Crowdfunding." Whether you're a seasoned investor or just starting with as little as $10, this book offers a straightforward approach to using crowdfunding platforms to invest in projects that not only promise returns but also drive positive social change. Written by a former CFO and investment banking firm founder with over 25 years in finance, this guide demystifies the investment process, making it accessible to everyone. Dive into a world where your investments reflect your values and contribute to a better future. Start your journey towards impactful investing today!

Praise for How to Make Money with Impact Crowdfunding:
This is a fantastic overview not just of crowdfunding investing but full of sensible advice regarding investing in general. ~Sara Hanks, Founder and CEO of CrowdCheck

Devin Thorpe offers a guide to impact crowdfunding without being too wonky, yet should give a new investor enough background and confidence to invest wisely in this emerging and important investment opportunity. ~Stephen Shaff, Founder and CEO of Community-Vision Solutions

Discover the keys to impactful investing with How to Make Money with Impact Crowdfunding. A vital addition to the ecosystem, this book offers unparalleled insights for anyone looking to make a difference. ~Andrew Savikas, Strategic Advisor

Whether you are a seasoned investor seeking to diversify your portfolio with meaningful ventures or a newcomer eager to make your mark in the world of social impact crowdfunding, How to Make Money with Impact Crowdfunding offers the tools, insights, and inspiration needed to embark on this rewarding journey. Prepare to be challenged, enlightened, and empowered to make a difference with your investment choices. – Dorian Dickinson, Co-Founder & CEO of FundingHope, LLC.

Devin brings long-honed financial and investment expertise to How to Make Money with Impact Crowdfunding: Your Guide to Investing Profitably to Support Diverse Founders, Social Entrepreneurs and Community Builders, but more importantly, he brings his passion and unique energy. All of our communities need to learn and use impact crowdfunding in order to help build sustainable, equitable local economies, and this book will help all of us get there. ~Chris Miller, Chair of the National Coalition for Community Capital

If you're looking to dip your toes into the world of impact investing but find the thought of it daunting, How to Make Money with Impact Crowdfunding is for you. This book is tailored to those new to the investing landscape and provides an easy-to-understand introduction to impact investing.

Written in a style that breaks down complex jargon and concepts, this book ensures that even beginners can grasp the fundamentals of impact investing without feeling overwhelmed. Unlike other titles that might seem geared toward seasoned investors, this book is written for ordinary folks eager to make a positive difference through their investments.

The author has deliberately kept the book short and easy to read, understanding that your time is valuable. It's not about catering to the wealthy elite; it's a guide for people like you who want to align their investments with their values and make a meaningful impact in the world.~Jen Risley, Editor of The Main Street Journal

• Language: English
• Publisher: Devin Thorpe
• Release date: Apr 25, 2024
• ISBN: 9798224788880

Devin Thorpe

Devin D. Thorpe brings a broad perspective to financial planning, having owned and operated an investment-banking firm, which included an investment advisory business, a mortgage brokerage and having served in a variety of corporate finance positions.Presently, Devin serves as a business professor at South China University of Technology in Guangzhou, China on behalf of Brigham Young University’s Kennedy Center China Teachers program. Previously, he served as the Chief Financial Officer for the multinational company MonaVie, listed in Inc. Magazine’s 2009 Inc. 500 as the 18th fastest growing company in America and, at $834 million in revenue, the third largest company on the list. Prior experience includes two years working on the staff of the U.S. Senate Banking Committee during Utah Senator Jake Garn’s tenure. He also served briefly in Utah State Government, working at USTAR under Governor Jon Huntsman.He earned an MBA with focus in Finance and Accounting from Cornell University’s Johnson Graduate School of Management. He completed his undergraduate degree in finance at the University of Utah, where he later worked as an adjunct professor of finance. In 2006, Devin was recognized by the David Eccles School of Business at the University of Utah as a Distinguished Alum.

Book preview

Introduction

This book will help you learn to invest profitably by making small direct investments in companies raising capital via crowdfunding. We’ll focus on investments that make the world better and provide you with a financial return at the same time. If you’re focused more on wealth creation than wealth distribution, this book is for you.

You Are an Investor

You are an investor. This book is for you. I recognize that if I walk into a crowded Burger King to buy an Impossible Whopper and shout, Raise your hand if you’re an investor! not many (if any) people will raise their hands.

You may use various labels for yourself. Professionally, you may have a title–plumber, lawyer, teacher, doctor, astronaut, etc. Personally, you have a place in your family–child, parent, sibling, partner, aunt or uncle, grandparent, and so on. Other aspects of your identity, such as race, religion, ethnicity, gender identity, and other factors, bring more labels.

Investor may not be on the list, but you are almost certainly an investor.

About two-thirds of U.S. households own a home, according to Bankrate.com.¹ While that rate dropped after the Great Recession of 2008-2010, the rate now lines up neatly with long-term averages. If you own a home, you’ve made a genuinely massive investment. You are an investor.

About 55 percent of Americans who haven’t retired have a 401(k) or 403(b), the latter being the public employee alternative to the more familiar corporate 401(k), according to The Motley Fool.² About 22 percent of folks have a pension plan. More than a third, about 36 percent, have an IRA. Only about 25 percent have no retirement savings at all. In other words, approximately 75 percent of people are investing for retirement.

So, chances are excellent that you are an investor.

Start With $10

If you’re not yet an investor, don’t worry. One of the key things I’ll share in this book is how to start investing for impact via crowdfunding with just $10. This little-known secret will help you get started without risking more than you should on your first investments.

You won’t need a PhD in physics, an MBA or a law degree to start with $10. I’ll break it down so you can do it without sweating it.

Keep Reading

At the back of the book, I’ve included a formal biographical summary of my life and career. That isn’t helpful if you’re trying to decide whether to keep reading this book now, so let me tell you a bit about myself.

Most people know me as a champion of social good and the host of a streaming television show, Superpowers for Good. That doesn’t qualify me to write about investing.

Before I launched a second career with the primary goal of social impact, I had a 25-year finance career. At the end of that run, I was the chief financial officer or CFO for the third-largest company on the Inc. 500 list. The list is ranked primarily by growth rate, not scale, but the largest companies do get ranked. The company was also the 18th fastest-growing–a notable achievement for such a large company.

Previously, I founded and ran a boutique investment banking firm not-so-creatively called Thorpe Capital. Regulated by the Securities and Exchange Commission, the NASD and then FINRA, the firm played a role in growing the entrepreneurial economy of the Intermountain West. During that time, I served as the volunteer president and then chair of the MountainWest Capital Network. I spent about a decade serving as an officer or director.

While I ran Thorpe Capital, I obtained a suite of securities licenses that allowed me to operate as the firm’s principal and CFO, among other things. Long expired, I don’t claim authority under those licenses to act on your behalf or anyone else’s today. I have been an active investor for decades. Please understand that this book doesn’t represent a journalist’s recitation of researched facts but is instead the insights of a genuine market participant.

With that, let’s dive in.

Chapter 1: Why You Should Make Money with Impact Crowdfunding

If you’re like most of us, you’re not confused about why it is essential to make money. Everything from groceries to retirement requires it. Still, there are some less apparent reasons why making money with your impact crowdfunding is vital.

In 2019, I had the opportunity to meet Bill Gates and interview him in person. Later that year, I visited with him again briefly by phone. As you may have guessed, I rarely miss an opportunity to mention this.

For many years, Forbes listed Bill Gates as the wealthiest person on the planet. Today, Forbes lists him as number six, right behind Mark Zuckerberg and just ahead of Bill’s friend Warren Buffett.³

Bill has called on other billionaires to join him in taking a pledge to give away at least half of their wealth before they die. He recognizes that it means relatively little to leave their wealth to charity upon death but keep it to live lavishly until then. In 2022, he shared his plans on what was then called Twitter: I plan to give virtually all of my wealth to the foundation.⁴

He is arguably the world’s greatest living philanthropist.

Bill is also well known for seeking to maximize returns on his investments.

Think about that for a moment. He plans to give away virtually all of his money, yet he works hard to maximize investment returns both in the foundation and his private