In this week’s Kingscrowd Investment Roundtable, Brian Belley, Teddy Lyons, and Léa Bouhelier-Gautreau celebrate the 200th edition of the “Chart of the Week” by exploring the most popular investments among Kingscrowd users. They dive into major names like StartEngine, Monogram Orthopedics, and Rentberry, uncovering trends behind their popularity. The team also breaks down material updates to Elemeno Health, including new leadership, improved margins, and the nuances of liquidation preferences.
What is Kingscrowd’s latest “Chart of the Week” about?
Teddy Lyons: This week’s special 200th chart highlights the most popular equity crowdfunding raises among Kingscrowd users. Familiar names like StartEngine, Monogram Orthopedics, and Liquid Piston made the list, driven by repeat rounds and large Reg A+ raises.
Why are Reg A+ raises so prominent among the top investments?
Brian Belley: Reg A+ raises allow companies to raise significantly more—up to $75 million—and are often done by later-stage companies with higher budgets for marketing and compliance. This attracts larger numbers of investors.
What trends are seen in popular startups?
Léa Bouhelier-Gautreau: Most of these companies have raised multiple times, building credibility and momentum over several rounds. Success tends to compound across successive raises, drawing more investors.
What material changes were made to Elemeno Health?
Teddy Lyons: Elemeno Health brought in a new CEO, Tim Coulter, who has a proven track record in scaling health tech companies. Additionally, their gross margins improved from 21% to 62% under previous leadership, positioning them well for future growth.
How does the new funding impact Elemeno Health’s valuation?
Teddy Lyons: Existing VC investors contributed $1–$1.25M through a convertible note with a $15M valuation cap and a 2x liquidation preference. This protects VCs but ensures capital for scaling.
Why are liquidation preferences important to equity crowdfunding investors?
Léa Bouhelier-Gautreau: Liquidation preferences determine payout priority during exits. Preferred shares with liquidation preferences offer downside protection, ensuring investors recoup initial investments before common shareholders.
What should equity crowdfunding investors remember about startup investing?
Léa Bouhelier-Gautreau: Startup investments are high risk, illiquid, and may never provide returns. Always invest money you’re prepared to lose and understand deal terms like liquidation preferences.
