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 patent-pending, AI-driven algorithm supported by a robust 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 return 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.
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.
Disclaimer: KingsCrowd’s quantitative and qualitative ratings should not be considered as investment recommendations. KingsCrowd is not a financial advisor. We provide information to aid investors who are making their own investment decisions. Analyst Reports speak as of the date of their issuance. KingsCrowd does not update Analyst Reports for events or developments subsequent to when the report was written.
