Industry Analysis - April 6, 2022

Startup Valuations Vary by Platform

In the online startup investing world, investors can peruse potential startup investments on dozens of different funding platforms. And each platform appears to take on a slightly different niche. Some platforms highlight community development projects, debt deals, and consumer packaged goods, while others feature tech innovation products and business-to-business software-as-a-service solutions. As the crowdfunding space grows, funding platforms will likely continue to make strides to further differentiate themselves from competitors. 

But do startup valuations differ by platform? This Chart of the Week looks at median startup valuations across five different platforms in 2021. 

In 2021, there were 1,229 successful raises. And the median startup valuation did fluctuate based on the platform. Wefunder and Republic saw the lowest median startup valuation of $10 million, with Netcapital boasting a slightly larger median startup valuation of $10.002 million. Startups on SeedInvest had a median valuation of $15 million. And StartEngine tops the charts with a median startup valuation of $18.05 million.

Given how young the Regulation Crowdfunding (Reg CF) space is and the recent emergence of platforms, these startup valuations are sizable. And they demonstrate Reg CF’s legitimacy. As more startups turn to Reg CF for their fundraising efforts, median valuations will likely continue to increase across platforms. Such growth should be exciting for founders and investors alike. Founders will have more opportunities to tap into a diverse crowd of investors who could become enthusiastic ambassadors for their brands. And investors will have more opportunities to invest early in promising companies.

About: Carolyn Price

Carolyn is passionate about mission investing within the startup ecosystem. Prior to KingsCrowd, she was a founding team member at Rentearn, a proptech startup that makes real estate investing more efficient and equitable for inexperienced investors. Carolyn also co-founded a fintech startup, which was accepted to and funded in MIT Sloan’s accelerator program, that makes long term investing simple for university students. Carolyn holds a degree in Economics and Political Science from Wellesley College. In her free time, she enjoys practicing yoga, stand up comedy, and surfing.

View more articles by Carolyn

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