The equity crowdfunding space draws in all types of investors. Some are accredited investors investing thousands of dollars into each investment opportunity. Others are new investors just looking to get started with an investment of $100 or less. In today’s Chart of the Week, we explore the minimum investment amounts for funded startups since the beginning of equity crowdfunding in 2016.
- Nearly half of startups that raised a crowdfunding round (equity or debt) set minimum investment amounts at $100.
- Given investment crowdfunding’s mission of democratizing startup investing, it makes sense that most startups would make investing accessible at a low minimum investment amount.
- However, some startups may be under the impression that setting the minimum investment amount much higher will draw in more capital overall.
- This has certainly worked for startups like Koios Medical, who maxed out its raise with a $1,000 minimum investment requirement.
- However, setting a minimum investment amount this high can prevent smaller investors from supporting the company. In some cases, this can lead to an unsuccessful raise if the company doesn’t have enough tailwinds or an ineffective raise marketing strategy.
