In the spirit of the holiday upon us, I thought it would be fun to take a quick look back on what Reg CF crowdfunders might be thankful for so far this year.
Low Minimums
Offerings that met their target fundraise in our data (247 out of 358) had, on average, minimum offering goals of $39,500 (in line with what I have written about previously). The median minimum for these offerings is $25,000. 25% of these offerings are targeting only $10,000. On the flip side, unsuccessful offerings are trying to raise over $10,000 more on average.
Reg CF Investors
Offerings meeting their goals are attracting an average of 510 investors, who are investing $750 per investment. Ten percent of offerings are drawing over 1,000 unique investors, and individual investment amounts of over $1,000. Jetson AI topped the list, drawing in over 5,500 investors.
A Million Little Reasons
17 offerings hit the million-dollar threshold so far this year, with 10 offerings maxing out at the $1.07M limit.
StartEngine (most accommodating) and NextSeed (most success)
StartEngine has hosted nearly 30% of offerings we tracked this year, with a 62% success rate. NextSeed has hosted only 13 of the offerings in our data, but each and every one of them has hit their target investment goal.
Early Investment
Investors during the first few days of an offering going live invest just over $30,000 in Reg CF offerings across all offerings. For those offerings who ultimately meet their target, investors chip in just over $100,000. And if you remember the discussion from above about average round minimums, this investment is often enough to put these offerings over the top from the get-go.
Software…and Food
Software has been an attractive avenue for crowdfunding this year, with over 20% of the offerings in our sample targeting this industry. And it is only fitting that the next closest industry, on this day of eating way too much turkey, is Food and Drink.
October
It was a good month for offerings that launched in October 2019, with 40 offerings bringing in over $10M in commitments.
KingsCrowd
Let’s also be thankful for KingsCrowd and its Top Deal and Deal to Watch recommendations. And an anticipatory thanks is in order for its upcoming launch of its Ratings Platform, providing crowdfunding investors with a reliable source for equity crowdfunding investment advice and research.
Wall Street has Morningstar, S&P, and Bloomberg
The equity crowdfunding market has KingsCrowd.
About: John Aland
John is an Accounting PhD candidate at the University of Michigan’s Ross School of Business. His research interests include crowdfunding, disclosure, and debt contracting. Prior to Michigan, he worked as an auditor at KPMG in Philadelphia for seven years, leaving the firm as an audit manager. John has a BS in Accountancy from the University of Notre Dame. He can be reached at alandj@umich.edu.
