Education Center For Investors

Why Invest in Local Businesses

Merrill Lynch ran a famous publication in the late 1940’s that explained why investing in public stocks and bonds was important:

“If people do not invest their funds in securities, American business and the American government will not have the capital they need for growth—for new products, new plants, new jobs. That capital can come from just one place: People. Not just a few people with great fortunes—there aren’t that many of them anymore—but from millions of people.”

Doesn’t this sound familiar? Millions of people funding businesses so they can create new products: sounds an awful lot like crowdfunding.

The main difference is that private businesses, like your local shops, can’t receive money through the public markets. Only large public companies and the government itself could get equity (stock) and debt (bond) investments from the general population.

Public stocks and bonds are at the core of most investment vehicles, be it 401(k)s, IRAs, mutual funds, index funds or ETFs. If you’re saving for retirement through your employer-provided 401(k) or using Vanguard, Charles Schwab, Fidelity, JP Morgan, Merill Lynch, E-Trade, TD Ameritrade, Betterment, Wealthfront, etc. they’re all generally based on a mix of publicly traded stocks and bonds.

That’s why what NextSeed does is new: giving you exclusive access to business investments that you had no way to know about or participate in until now.

We get excited when we eat a delicious meal at the new restaurant in town or find a new spot to gather with friends and family on the weekends. When we visit other cities and discover local flavors, we think “I wish this were in my city—I would go here all the time!”

Small businesses are the main engines driving our local economies and the biggest creators of jobs. Yet, the sources of financing available to them were limited. They couldn’t tap into the millions of people that could provide the capital for their growth, to add jobs and service their communities because they weren’t big public companies.

You can change that. It’s not 1940 anymore - we’ve gone through “too big to fail” and dealt with faceless conglomerates that can make or break a town if they abandon one of their offices or factories. If the investments of millions of people can fund companies like Apple and Tesla and our government, you can surely fuel growth in your own communities by partnering with passionate entrepreneurs.

You know the value of homegrown businesses and community support—now you have a way to keep your money circulating within the local economy, creating jobs in your cities and impacting your lives: all by investing in local businesses.

Next: Business survival