A Comprehensive Analysis of Angel Investing
Startups raising money through equity crowdfunding platforms for 2014.
Boston, MA January 28, 2015
Fund Wisdom, an equity analytics firm analyzing online equity offerings, today released its first annual Investment Insight report for 2014. The report details industry-wide online private equity offerings from top investment platforms including AngelList, SeedInvest, WeFunder, Onevest, Fundable, EquityNet, Return On Change, CrowdFunder, and EarlyShares for the last calendar year. FundWisdom found that 296 SEC Regulation D 506C or generally solicited offerings closed in the year with more than $278M invested. The average round size closed during the year was $1.06M.
"This past year singled a paradigm shift for seed stage equity offerings, as more were closed online than ever before," said Brian Thopsey, CEO and Founder of Fund Wisdom. "The record breaking twelve months for AngelList, Fundable, SeedInvest and other investment platforms, along with the imminent changes due with Title III of the jobs act, has equity crowdfunding poised to democratize private investment in startups and disrupt the landscape of venture-backed deals."
Based on its own data, publicly disclosed information and discussions with key constituents in the equity crowdfunding ecosystem, FundWisom believes top investment platforms are gearing up to increase offerings and additional services to startups raising funds online in 2015. Opportunities to invest in firms and entrepreneurs online are abundant, and the number will increase as investors' appetite for this alternative asset class continues to grow. In addition, Title III of the Jump-start Our Business Startups (JOBS) Act will increase the amount of investors and overall capital invested in equity online.
"2014 was an incredible year for Fundable startups," said Will Schroter, CEO of Fundable. "We were able to provide unprecedented resources, over $77 million in funding commitments, to startups with our acquisition of LaunchRock and by expanding our team. Our mission has always been to help entrepreneurs thrive, and we're thrilled that we were able to help so many in the last year."
Other highlights from FundWisdom's report include:
- The Mobile and Wearable sector captured the most investment dollars
- Although it was close, more firms offered equity over convertible debt
- Life360, Zero Energy Systems and Kinnek were the largest equity crowdfunding offerings that closed this past year
- San Francisco was home to the most closed online equity offerings followed by New York City, Boston & Los Angeles
- Companies are using equity funding platforms as a marketing channel, with a large percentage still being funded offline
Questions on the report? Reach out to the Fund Wisdom team
About Fund Wisdom
Based in Boston, Fund Wisdom is a financial analytics solution analyzing online equity offerings. It connects online equity investors and entrepreneurs with financial wisdom. We save you time and money in your investment decision-making process while providing deep insight. This enables investors to increase the likelihood of achieving attractive returns and helps entrepreneurs assess and market their offerings.