Mark Zuckerberg spent some quality time on Capitol Hill today getting grilled by Congress. Part of the discussion centered on Facebook’s plan for their cryptocurrency, Libra. So you can thank Congress and the Financial Services Committee for the focus of this write-up, companies we categorize as Financial Products and Services.
These financial companies make up only a small amount of our sample, 59 companies, or 5% of the overall sample. The bulk of these offerings are listed on StartEngine (23) and Wefunder (12). Outside of this two horse race, SeedInvest and NetCapital (home of the KingsCrowd offering), are the only other two platforms with over 10% of the offerings.
When it comes to the success rate of these offerings, they succeed at a fairly substantial rate, with just under 70% of offerings reaching their investment minimum. The two main platforms for these offerings, StartEngine and Wefunder see success rates of 75%, while NetCapital offerings hit at a 100% success rate.
On average, these offerings are looking to raise at least $46,750, which is a little bit greater than the average across the universe of offerings. If we split out the offerings into only those 40 offerings who reach their goal, that minimum drops to $34,000 (which makes the average round minimum for unsuccessful offerings around $75K – a little on the high side). These successful offerings average nearly $230,000 in investments, or about 6.75x their minimum ask. The top two offerings in terms of dollars raised are Coinvest (on Republic), which maxed out at $1.07M, and Altcoin (Wefunder), which raised $920K. (I knew I could tie it all back to Facebook’s cryptocurrency). Five other offerings also crossed the $500K threshold.
And investors appear to buy into these offerings. On average, successful offerings bring in 261 unique investors, who make an average investment of $1,037. The offering that brought in the largest number of investors, 420 Real Estate, drew in 2,024 unique investors.
The Financial Products and Services offerings range from cryptocurrency to Reg CF platforms to firms who rate these very offerings. From the data, these offerings benefit from lower investment minimums, and riding the wave of cryptocurrency. There are currently 7 live offerings across 5 different offering platforms (with an average target of $14K!) – more than enough opportunity for you to get in on the ground floor of one of these financial services company. So do your due diligence and invest today.
Wall Street has Morningstar, S&P, and Bloomberg
The equity crowdfunding market has KingsCrowd.
About: Chris Lustrino
A Boston College Eagle for life, on a mission to democratize startup investing for all people at KingsCrowd, with a passion for Fintech, investing, social impact, doing well and doing good, and an avid runner, cyclist and writer.