As the online private equity market rapidly grows, it becomes increasingly difficult for investors to keep up with the vast amount of deals across various platforms. Each platform has its own system for selecting companies. And with more than 20 unique platforms hosting active crowdfunding deals, it can be overwhelming for new investors to find and track exciting startups. Determining which platforms to focus on is crucial when starting out.
In this Chart of the Week, we set out to determine which platforms have hosted the most successful deals — meaning crowdfunding raises that were successfully funded. This data is representative of all 1,780 Regulation Crowdfunding deals that have closed from the beginning of 2018 to July 2021. To keep things simple, we chose to show the top 10 platforms that have the most closed deals — but we track more than 20 platforms in total.
Wefunder came in with the highest number of successful rounds at almost 500 raises. StartEngine and Republic followed closely behind with 383 and 268 closed deals respectively. These top three platforms far outperformed the remaining funding portals, accounting for nearly 65% of all successful raises. In all, there were 18 platforms that had fewer than 100 successfully closed rounds over the past three years.
There are likely many factors that result in Wefunder, StartEngine, and Republic being the top performers. These platforms are some of the most well-known in the equity crowdfunding space. They could have higher numbers of users than many of the other platforms KingsCrowd tracks. The name recognition could also result in more founders choosing to list their companies on one of these three platforms. Higher deal flow in general leads to having more winners overall, so the more companies that go to Wefunder, StartEngine, or Republic, the more successful rounds those platforms will host.
Note: all data used for the Chart of the Week comes from the KingsCrowd database and represents a snapshot of the crowdfunding market.
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About: Inez Sanjaya
Inez's background is in the startup ecosystem, which she is very passionate about. Inez has experience working in a startup, a Google-backed accelerator, and lastly in Plug and Play Tech Center. Prior to this, she was a part of VU Venture Partners doing deal sourcing and conducting due diligence. Inez graduated from the University of California Berkeley with an Economics degree.