KingsCrowd compares the average ratings of Reg CF and Reg A equity deals by industry since 2022. KingsCrowd’s proprietary algorithm rates equity crowdfunding deals from a scale of 1 to 5. The bars in grey reflect industries with less than 20 deals in the chosen time period. Small sample sizes can skew results.
- The average rating of deals in the Pet, Retail, and Alcohol industries is low. Indeed, these industries tend to have stagnating and crowded markets . They lack product innovation, which minimizes investor’s potential returns on most equity deals.
- Surprisingly, the Arts and Craft industry rates highly. However, the results are skewed by the small sample size. The only three deals in this industry all offer scalable marketplaces dedicated to different niches of customers.
- Deals from in Farming and Agriculture industry also perform well. Most of startups raising online in this industry are transforming it by using technology – like Advancing Eco Agriculture and Eden Grow System, or leveraging natural resources in a unique way – like Biodel AG and Garden for Wildlife.
- Overall, the industries that tend to rate above the 3.0 average offer scalable solutions – such as Cybersecurity, Marketing or Business Software, or expensive products that customer depend on – such as Energy, Transportation and Healthcare. The industries that tend to rate below the 3.0 average are usually highly competitive markets where innovation and differentiation are more difficult to achieve.