Kingscrowd is the financial data platform for the online private market. To help investors to make informed startup investing decisions, Kingscrowd provides both quantitative and qualitative ratings for companies’ crowdfunding rounds. The quantitative ratings are powered by Kingscrowd’s AI-driven algorithm supported by a proprietary online private market database. The qualitative ratings are made by Kingscrowd’s investment team. As of mid-2023, we only designate “Top Deals,” which are the highest potential investment opportunities that our experts see. Each Top Deal also receives an investment from the Kingscrowd Capital fund, showcasing our confidence in these selections.
The Selection Process
Early and Growth Stage
Kingscrowd’s investment team reviews companies and their equity crowdfunding rounds weekly. The research for each company is based on raise pages, offering circulars, SEC filings (Form C, Form 1-A, etc), financial statements, founders’ LinkedIn profiles, independent market sizing, competitive landscape evaluation, and differentiator analysis. In addition, the investment team will reach out directly to founders for detailed conversations.
IPO Stage
Kingscrowd’s investment team also evaluates startups that are about to go public and are offering everyday investors the opportunity to invest at the initial public offering (IPO) price via platforms like Robinhood or SoFi.
Final Decisions
Analyst Report selections are based on the quality of five key metrics — price, team, market, differentiators, and performance — and the risk associated with an investment in a given startup or IPO opportunity. Additionally, we consider market interest and trends as well as analyst interest within our investment team. Finally, the investment team will give companies that receive coverage a specific designation to indicate Kingscrowd’s view of its potential as an investment.
For companies that are not selected for an Analyst Report, it could be due to lack of information about its product or service. In other occasions, some exceptional companies may not be covered due to Kingscrowd’s finite resources, just as the public markets only select a set of companies to receive analyst coverage. A company not receiving a report is not a statement about the deal’s quality or potential.
Analyst Report Designations
Top Deals
Top Deal: In general, a Top Deal typically excels in at least four out of the five metrics. For example, a Top Deal company solves a real problem with unique solutions and sustainable competitive advantages. A solid founding team, great traction, and exponential growth are also constituents of a Top Deal. Most importantly, a Top Deal can potentially generate substantial returns for its investors. Each Top Deal also receives an investment from the Kingscrowd Capital fund.
Past Analyst Report Designations
In 2023 and earlier, Kingscrowd used to designate different levels of analyst reports, such as Deals to Watch, Neutral Deals, and Underweight Deals. As of mid-2023, we have streamlined our designations and now only designate “Top Deals.” These are the highest potential investment opportunities that our experts see.
We may still write analyst reports on interesting, trending, or any other deals that we believe could be of value to our investors. However, by not receiving a “Top Deal” designation, we aren’t necessarily saying it’s good or bad – it just isn’t a Top Deal.
How to View and Search for Analyst Reports
An analyst report can be viewed, when available, on a company’s Kingscrowd raise page. It is located if you scroll down towards the bottom, underneath the “Investment Overview” and “Ratings” sections, but above the “Company Funding & Growth” section.
Sample Top Deal report for Namecoach on Wefunder.
How to Search for Deals with Analyst Reports
To search for all offerings that have Analyst Reports on Kingscrowd:
- Navigate to the Deal Explorer
- In the left-hand filters, select either “Top Deals” and/or “Analyst Report” for the filter(s).
- Note: these filters are only available for paid Kingscrowd Edge members.
Kingscrowd paid members can also filter for Top Deals and Analyst Reports on the Advanced Company Search page:
Conclusion
By creating detailed Analyst Reports, Kingscrowd provides investors with the ability to easily identify, understand, and compare investment opportunities. We aim to publish between four to five Analyst Reports each week for a total of 16 to 20 Reports each month.
Disclaimers:
Kingscrowd’s quantitative and qualitative ratings, including Analyst Reports and numerical ratings scores, are not investment advice or recommendations. Kingscrowd, Inc. is not a registered investment advisor or broker-dealer, and does not provide personalized investment guidance. Our ratings and research are intended solely to assist investors in conducting their own due diligence and making independent investment decisions.
Past performance is not indicative of future results. Investing in startups is inherently risky, and investors should consult with a licensed financial professional before making investment decisions.
Affiliation with CrowdCheck
Kingscrowd, Inc. is the parent company of Kingscrowd Advisory, Inc. (doing business as “CrowdCheck”), and is affiliated with the law firm CrowdCheck Law LLP. These entities provide legal, compliance, due diligence, and disclosure services to companies raising capital online.
As part of these services, CrowdCheck and/or CrowdCheck Law may represent issuer clients who are also rated or covered in Kingscrowd Analyst Reports or the Kingscrowd rating platform.
Kingscrowd maintains strict operational and informational separation between its independent investment research activities (ratings, analyst reports, Kingscrowd Capital fund operations) and CrowdCheck’s legal and advisory services.
CrowdCheck and CrowdCheck Law receive customary fees for services provided to their clients, and these fees are not influenced by nor do they influence Kingscrowd’s ratings or editorial coverage.
Kingscrowd does not receive compensation in exchange for favorable ratings or reports.
