Before You Invest for Impact, Know What You’re Trying to Beat
Today’s SuperCrowdHour explores how Reg CF investors can think clearly about market returns, risk, benchmarks and impact.
Today at noon Eastern, 9 Pacific, I’m hosting our monthly SuperCrowdHour webinar on one of my favorite subjects: investing via Regulation Crowdfunding.
The easiest way to watch is right here at the top of this post. We’ll have the video player embedded so you can simply press play and join us.
You can also watch live on SuperCrowd.tv using your Roku or Amazon Fire TV device. The program will also air on the e360tv TV Network, available on Roku, Amazon Fire TV, LG, Samsung, iOS and Android devices.
However you watch, I hope you’ll participate. Even if you’re watching on television, you’re invited to submit questions. This session will be better if you bring your curiosity, your skepticism and your experience.
The focus today is simple but important: before we invest for impact, we need to know what we’re trying to beat.
When people first discover investment crowdfunding, especially impact crowdfunding, the enthusiasm can be intoxicating. Suddenly, ordinary investors can do something that used to be reserved for the wealthy and well-connected. We can invest directly in startups and small businesses. We can back founders we believe in. We can support climate solutions, health innovations, community businesses, women founders, diverse founders and mission-driven entrepreneurs.
That is thrilling.
But investing is still investing. The question is not only, “Do I believe in this founder?” or “Do I care about this impact?” The question also has to be, “What return would make this investment worthwhile, given the risk I’m taking?”
That means we need a benchmark.
For most of us, the stock market is the obvious place to begin. Over long periods of time, the S&P 500 has delivered returns in the neighborhood of 10 percent annually. That number is familiar. It is easy to remember. It is also powerful. At 10 percent, your money doubles roughly every seven years. Over three decades, that can turn $100 into about $1,600 or $10,000 into about $160,000.
That is the magic of compounding.
But there is a catch. The market’s long-term return is not the same thing as your personal return.
To earn the market return, you have to be invested in the market. You have to stay invested through the scary parts. You have to avoid panic selling near the bottom. You have to avoid piling in after the market has already soared. You have to keep fees low. You have to resist the emotional urge to believe that this time, you know better than everyone else.
That is harder than it sounds.
The stock market may average around 10 percent over long periods, but it doesn’t deliver 10 percent politely every year. Some years are thrilling. Some are painful. During the Great Recession, the S&P 500 lost more than half its value from peak to trough. I remember that period well. It did not feel like a spreadsheet exercise. It felt awful.
That matters because investors are human. We get excited. We get scared. We make mistakes. Even sophisticated investors sometimes buy high and sell low. Individual investors often do worse than the market because our timing is poor, our emotions are real, and our favorite stocks can become part of our identity.
Bonds give us another benchmark. High-quality corporate bonds have historically offered lower returns than stocks, often roughly half the stock market return over long periods. That lower return comes with lower volatility, though not zero risk. Bond prices move when interest rates move. Companies can fail. Even bondholders can lose money.
A blended portfolio — part stocks, part bonds — might reasonably create a long-term expectation somewhere around 7 to 8 percent before we adjust for fees, timing mistakes and real-world investor behavior.
So, what benchmark should we use for impact crowdfunding?
In my book, I often use 10 percent as a reference point. Not because every investment should be expected to produce exactly that return. Not because crowdfunding investments are guaranteed to match the stock market. They certainly are not. I use 10 percent because it is familiar, memorable and demanding.
It is also generous to the stock market. In practice, many investors don’t capture the full market return.
Still, when we invest in private startups and small businesses through Reg CF, we take risks that are different from public market risks. These investments are often illiquid. You may not be able to sell when you want. The business may fail. The path to a return may be uncertain. Even when things go well, the timing may be unpredictable.
That is why equity investments in crowdfunding should often target returns higher than 10 percent. The extra expected return is not greed. It is compensation for the additional risk, uncertainty and lack of liquidity.
At the same time, this is where impact investing becomes more interesting than ordinary investing.
Many of us are not investing via Reg CF only to maximize financial returns. We are also investing to help build the world we want to live in. We want to support businesses solving real problems. We want founders outside the traditional venture capital networks to have access to capital. We want local businesses, climate innovators, health entrepreneurs and community builders to have a shot.
That impact matters.
But impact does not eliminate the need for discipline. In fact, it makes discipline more important. If we want impact crowdfunding to grow, we need investors to have good experiences. We need people to understand the risks before they invest. We need them to diversify. We need them to avoid putting money they cannot afford to lose into a single startup. We need them to think in portfolios, not lottery tickets.
Today’s SuperCrowdHour is designed to help with exactly that.
We’ll talk about how to think about market returns. We’ll explore why beating the stock market by investing in the stock market is harder than it looks. We’ll discuss why Reg CF can be compelling, but also why it demands patience, humility and diversification. We’ll talk about how investors can set their own benchmarks and make decisions that reflect both their financial goals and their values.
This is not about pretending impact investments are magic. They are not.
It is about recognizing that ordinary investors now have access to opportunities that didn’t exist a generation ago. We can invest in businesses we care about. We can help entrepreneurs raise capital from their communities. We can use small checks to support big ideas.
And we can do it thoughtfully.
So, please join me today at noon Eastern, 9 Pacific. Watch right here in this post, or tune in on SuperCrowd.tv or the e360tv TV Network.
Bring your questions. Bring your caution. Bring your optimism.
If we do this well, impact crowdfunding can become more than an investment category. It can become a way for ordinary people to help finance extraordinary change.
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Max-Impact Members
(We’re grateful for every one of these community champions who make this work possible.)
Brian Christie, Brainsy | Cameron Neil, Lend For Good | Carol Fineagan, Independent Consultant | Hiten Sonpal, RISE Robotics | John Berlet, CORE Tax Deeds, LLC. | Justin Starbird, The Aebli Group | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Mark Grimes, Networked Enterprise Development | Matthew Mead, Hempitecture | Michael Pratt, Qnetic | Mike Babbit | Coledger Solutions | Mike Green, Envirosult | Nick Degnan, Unlimit Ventures | Dr. Nicole Paulk, Siren Biotechnology | Paul Lovejoy, Stakeholder Enterprise | Pearl Wright, Global Changemaker | Scott Thorpe, Philanthropist | Sharon Samjitsingh, Health Care Originals | Add Your Name Here
Upcoming SuperCrowd Event Calendar
Join the SuperCrowd Impact League! You can be recognized for making impact investments via Reg CF. See how your activity compares to your peers. It’s free. Win valuable prizes. Start now!
Devin Thorpe will lead SuperCrowdHour on June 17, 2026, at 12:00 PM Eastern. In this insightful session, “How to Benchmark Your Impact Crowdfunding Portfolio v. the Stock Market,” Devin will explore how impact investors can evaluate the performance of their regulated investment crowdfunding portfolios alongside traditional stock market benchmarks. Drawing on his experience as a former investment banker, impact investor, and crowdfunding advocate, he will break down practical methods for measuring returns, assessing risk, and understanding the broader value created through impact investing. Attendees will gain a clearer understanding of how private impact investments compare with public market performance, what metrics matter most, and how to build a more informed long-term investment strategy. Whether you’re an experienced impact investor or just beginning to build your crowdfunding portfolio, this SuperCrowdHour will provide valuable insights to help you evaluate both financial and social returns with greater confidence and clarity.
SuperCrowd Impact Member Networking Session: Impact (and, of course, Max-Impact) Members of the SuperCrowd are invited to a private networking session on July 14th at 8:00 PM ET/5:00 PM PT. Mark your calendar. We’ll send private emails to Impact Members with registration details. Upgrade to Impact Membership today!
SuperCrowd26 featuring PurposeBuilt100™: This August 25–27, founders, investors, and ecosystem leaders will gather for a three-day, broadcast-quality global experience focused on disciplined capital formation, regulated investment crowdfunding, and purpose-driven growth. We’re bringing together leading voices in impact investing, compliance, digital marketing, and circular economy innovation to deliver practical frameworks, real-world case studies, and actionable strategies. The event culminates in the PurposeBuilt100™ Showcase, recognizing 100 of the fastest-growing purpose-driven companies in the U.S. Register now to secure your seat and get all the details. August 25–27, streaming worldwide.
Share the application for the PurposeBuilt100™: Purpose-driven founders deserve recognition. The PurposeBuilt100™ application window is now open—celebrating the fastest-growing companies building profit with purpose. If you know a founder creating real impact and real growth, please share this opportunity. Applications are free and confidential. Explore the program and apply today: PurposeBuilt100.com.
Community Event Calendar
Successful Funding with Karl Dakin, Tuesdays at 10:00 AM ET - Click on Events.
On June 18th at 5pm ET, join Tampa Bay Innovation and Menlo Park Patents for the Q2 Pitch Showcase, a live gathering for founders, inventors, investors, and startup supporters. Watch selected entrepreneurs pitch bold ideas, network with the innovation community, and see winners earn valuable prizes, including patent, valuation, and investor-meeting opportunities in St. Petersburg, Florida.
Register Now! October 20th and 21st will be the Crowdfunding Professional Association Regulated Investment Crowdfunding Summit for 2026. This is the event of the year for everyone in the crowdfunding ecosystem.
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