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The OurCrowd Equity Crowdfunding Report (2014)

The OurCrowd Equity Crowdfunding Report The equity crowdfunding market has recently experienced some serious growth, proving to be a truly disruptive model for investing in startups. Equity crowdfunding aggregates smaller amounts of capital from individual investors, who in return take an equity stake in the company. The next generation of Facebooks and Googles will be powered by investments from the crowd. As a top player in the global equity crowdfunding market, OurCrowd has conducted research and, based on our own experiences with the active investors in our community, have mapped out the size and growth of the booming equity crowdfunding market. About the investors The passage of the Jobs Act in 2012 officially heralded the opening of the equity crowdfunding revolution. However, while waiting for the SEC to sort out "Title III" accredited investor platforms have been operating under the cover of the SEC issued no action letters. Since September 23, 2013, these sites have been allowed to publicly solicit their investors. Today equity crowdfunding is still limited to accredited investors; however, based on our experiences and research, we believe the market is poised to more than triple in 2014. Equity crowdfunding is limited to accredited investors due to the risky nature of startup investing Accredited investor criteria in the US' Have to meet one of the following three criteria $1 million net worth $200,000 annual income $300,000 %24 joint annual income with spouse 500,000' # of active angels worldwide # of accredited investors in the US alone? 8.7 million 10% registered on ECF platforms 50,000- registrations Total % of active 5,000 (10% of registered angels) have invested through equity crowdfunding platforms angels invested in equity crowdfunding З% investors actively participating in startup investing That's roughly 1% 264,000 investors in the US Historical overview OurCrowd numbers7 Amount raised through equity crowdfunding to date Average individual investment portfolio size OurCrowd $393million $93,590 # of average companies in a portfolio Amount raised in 3.69 companies Q1 of 2014 $25,350 Average investment per company $90 million Active investors from 26 countries 100% 2013 Year in Review % increase from 2012 Total crowdfunding market valued at 50% $5.1 billion according to Massolution® Amount from equity crowdfunding in 2013 Only 4% of the total $204 million crowdfunding market % of successful 2014 Projections equity crowdfunding Projected amount in total crowdfunding 2014 campaigns in talks for follow 71% on rounds with institutional $10 billion" investors: This projection is based on the growth from the previous year and the anticipated legal changes due to the JOBS Act % of increase in quarterly sales for companies post equity crowdfunding: 351%" Amount of projected growth for equity crowdfunding in 2014: $700 million 11 % of companies that have raised above $1 million through equity crowdfunding: 7% of the total crowdfunding market 8.31%" 53% of OurCrowd companies have raised over $1 million Equity Crowdfunding Platforms 2$ Hundreds of equity crowdfunding platforms have recently emerged to take advantage of the liberalization of crowdfunding laws. Of the many, only a handful have successfully garnered investor interest. Major Platforms in the industry Top 10 equity crowdfunding platforms (like AngelList and OurCrowd) have invested $203million cumulativelyle # of startups invested in by those platforms: 460 2 platforms have raised between $10 million and $20 million for 64 companies Of those ten platforms" 6 platforms have raised over $20 million for 343 companies 2 platforms have raised between $1 million and $10 million for 55 companies These 10 platforms attracted nearly $100M for their own rounds of investment18 Equity crowdfunding hubs: Geo maps UK leads globally with 40 equity crowdfunding platforms19 US is a close second with 20 equity crowdfunding platforms20 # of countries that have equity crowdfunding platforms: 17" Other interesting facts? % of entrepreneurs raising capital through crowdfunding that have college degrees Average age of entrepreneur raising funds through crowdfunding Average number 39% of investors per deal of companies hired 2.2 new employees post crowdfunding 10.1 23 95% 35 1. 2. 3. SEC data for US investors and OurCrowd data, estimates 4. ibid 5. ibid 6. 7. based on OurCrowd's interaction with their registered, active angel investor community 8. 9. 10. 11. OurCrowd estimates 12. 13. ibid 14. 15. OurCrowd internal data 16. based on OurCrowd's research of the top 10 ECF platforms by AUM 17. Ibid 18. 19. 20. 21. 22. 23. OurCrowd

The OurCrowd Equity Crowdfunding Report (2014)

shared by tradestreaming on Apr 01
The crowd is getting bigger–and backing more startups than ever. Over the last few years, the crowdfunding industry has tripled in size. In addition to reward-based crowdfunding campaigns on platfor...




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