If, like me, you spent countless hours watching the Olympic Games this summer, you probably had your favorite athletes. Typically, these favorites are those who have already won Olympic or World Championship medals—they’ve reached the top and should know how to win again. I approach startup investing with a similar mindset. If a founder has already successfully exited a startup, shouldn’t they have an easier time doing it again?
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It has been proven that serial entrepreneurs tend to launch more successful startups than first-time founders. Even better, those with previous exits often have higher chances of achieving even bigger exits in the future.
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We analyzed the current Reg CF and Reg A+ raises, focusing on founders with the most past exits, whether through acquisition or IPO.
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One founder stands out as the Michael Phelps of startup exits: Troy Helming, founder and CEO of EarthGrid. With six previous exits (and one failure), including two unicorns (companies valued at over $1 billion) in the clean energy space, his track record is unparalleled.
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Only three other companies—The Build Club, NPCx, and MyCoachingTree—have founders with three previous exits, impressive feats comparable to Simone Biles’ Olympic record in Paris.
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Additionally, eight more companies have founders with two previous exits, marking remarkable success.
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Overall, 9.4% of active equity crowdfunding (ECF) raises are led by founders with at least one previous exit, and 2.78% by founders with at least two previous exits, highlighting the quality of companies raising through ECF.
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Of course, investors shouldn’t blindly back entrepreneurs with past exits without thorough due diligence. However, a founder’s track record is a positive factor that should not be overlooked in ECF investing, as it offers insight into a founder’s potential without the need for direct communication.
