The Roundtable crew analyzes data on venture capital vs. crowdfunding trends, assessing Boxabl’s $3.4 billion valuation, whether it’s justified and understanding why it has two active raises. The team also reviews AptDeco’s current offering, a rising platform transforming the secondhand furniture market with $6.5M in revenue and top-tier partnerships.

Key Takeaways:

  • Venture Capital vs. Crowdfunding: We analyze data from 2018 to 2024, revealing that while both markets saw huge growth in 2021, crowdfunding has pulled back less and shows more consistent growth than traditional venture capital.
  • Boxabl’s Massive Valuation: With a $3.4 billion valuation, Boxabl has gained traction, but questions remain about its gross margins, product delivery, and the founders’ hefty compensation. Is Boxabl overvalued?
  • AptDeco’s Rise in the Furniture Resale Market: AptDeco is transforming the secondhand furniture market, with $6.5 million in revenue and partnerships with major brands. Learn why it’s a standout player in this growing space and how it solves key logistical challenges.

What is the comparison between venture capital and investment crowdfunding since 2018?

Brian: We analyzed capital raised in both venture capital (VC) and investment crowdfunding since 2018. While both markets surged in 2021 during the zero interest rate era, crowdfunding has pulled back less, showing more consistent growth compared to VC. Crowdfunding is now 4.5x its 2018 size, while VC is only 1.3x.

How has AI impacted venture capital investments?

Scott: AI has attracted a lot of capital, with multi-billion-dollar rounds in companies like OpenAI. However, many startups claim to be AI-driven but aren’t truly AI-focused. Investors need to be cautious as this trend may not deliver the expected returns in the long run.

What is Boxabl, and why has it garnered so much attention?

Teddy: Boxabl produces modular, foldable homes designed for easy transportation and installation. They’ve attracted significant attention due to government contracts and their frequent crowdfunding campaigns, raising at eye-popping valuations, currently at $3.4 billion.

Why is Boxabl’s current $3.4 billion valuation controversial?

Scott: While Boxabl has potential in the modular home space, its current valuation seems disconnected from its financial performance, particularly with negative gross margins and slow delivery on product orders. Additionally, the founders are drawing significant compensation, raising concerns about the value they’re offering investors.

What makes AptDeco an exciting investment opportunity?

Léa: AptDeco is revolutionizing the secondhand furniture market, offering an easy-to-use platform for buying and selling furniture. They’ve grown to $6.5 million in revenue, partnering with top brands like West Elm. Their scalable business model, which includes managing returns and outlets for major brands, positions them as a leader in this space.

What are the key challenges in the secondhand furniture market, and how is AptDeco addressing them?

Léa: The main challenge is logistics—furniture is hard to ship and store. AptDeco solves this by keeping the furniture with the sellers until it’s sold, minimizing storage costs, and using its own delivery system in certain areas to ensure a smooth experience.