AI and Tech Investing Trends in Investment Crowdfunding

CHART OF THE WEEK 📈

By Brian Belley | Read

As of August 2024, online startup investors have over 550 active investment opportunities to consider. While several notable investment trends have emerged over the past 12 months (did someone say “AI”?), investors still have a diverse range of deals available to them.

In this week's Chart of the Week, we break down the latest investment trends in AI and other popular tech sectors since July 2023.

• Only one AI deal in the top 10 funding rounds: surprisingly, nine of the top ten deals that attracted the most investments over the past 12 months did not have an AI focus.

  • Miso Robotics, which ranked 9th with $8.6 million invested, is the only AI-focused company to breach the top 10. Miso Robotics has an "AI-enabled" robot that functions as a kitchen assistant.

• AI deal growth: the number of deals mentioning "AI" as a key part of their business has grown from 5 raises in Q1 2020 to 35 raises in Q3 2024. As a percentage of all active raises, AI-focused deals have risen from 5.8% in 2020 to 9.6% in 2024.

• AI deals attracting more investments: deals with an "AI" focus have received 39% higher investment commitments in early-stage rounds ($477k vs. $344k) and 25% higher commitments in growth-stage rounds ($1.9M vs. $1.5M).

• AI deals getting higher valuations: AI companies have commanded higher median valuations — $20 million for AI companies versus $7.5 million for non-AI companies.

• Other investment trends outside of AI: looking more broadly at tech sectors, the most popular sectors by total Reg CF & Reg A+ investments over the past year are:

  • CleanTech ($220.8 million, 131 deals)

  • FinTech ($70.2 million, 118 deals)

  • EnterpriseTech ($58.6 million, 136 deals)

  • HealthTech ($55.1 million, 152 deals)

  • HardwareTech ($54.6 million, 102 deals)

• Top funding rounds by sector: the most popular active deal in each of those sectors is currently:

  • HealthTech - TriAgenics, $3.9 million

  • EnterpriseTech - AtomBeam, $4.1 million

  • CleanTech - EnergyX, $48 million

  • FinTech - Shared Capital Cooperative, $3.6 million

  • HardwareTech - Arrive (formerly DroneDek). $1.9 million

For a deep-dive analysis including additional charts showing valuations by tech sector, valuations for AI vs. non-AI deals, and more, check out the full article here.

Next Week: Learn about the #1 most active venture firm in the U.S.

On Wednesday, August 21st at 1pm ET, please join us for an exclusive webinar with Michael Collins, CEO of Alumni Ventures Group. Discover how Michael's journey from angel investing to launching multiple successful businesses has shaped Alumni Ventures into a top-tier venture capital firm with over $1.25 billion raised since 2014 and a diversified portfolio of 1,300+ venture-backed companies.

Alumni Ventures is recognized among the World's Most Innovative Companies (Fast Company '22) and trusted by 10,000 accredited investors. Don’t miss this chance to gain insights from Michael and learn about the disciplined investment processes and strategic partnerships that make Alumni Ventures a leader in the industry. Register now to secure your spot!

PITCH REVIEW 💸

By Teddy Lyons \ Deal Report

Brief: GRYT Health is an online community for cancer patients to connect with one another and find new treatment options offered by top pharma companies. GRYTs platform allows patients to learn about these treatments from other patients and engage with clinical trials on their own terms. The company has two service lines. The first is "Empowerment Programs," where patients are invited to share their experiences and perspectives for other patients and healthcare providers to learn from. Gryt has created 250 of these to-date. The second service line is "Research Programs," which are conducted with pharmaceutical clients. These programs enable pharmaceutical companies to invite patients to clinical trials and learn about patient experiences with certain treatments.

Key People: David Fuehrer (CEO) brings 12 years of relevant industry experience. His background includes significant expertise in patient engagement and clinical trial processes at companies like American Cancer Society, World Health Organization, Stupid Cancer, and CureLauncher. Uma Rana is SVP of Strategic Partnerships and previously served as Lead Program Manager at Bristol Myers Squibb, Associate Director at Merck, Senior Project Manager at Educational Testing Service, and Director of Strategic Health Consulting at Accenture.

Summary

Here's what we like:  GRYT Health has already achieved significant traction, booking $11 million in lifetime revenue from 20 pharmaceutical and biotech clients and securing an additional sales pipeline of $5 million with 23 treatment development clients. These achievements demonstrate the company's ability to attract and retain high-value customers, validating its business model and market approach.

Here's what we don't: GRYT Health's financial health presents several challenges. The company has a low cash on hand of approximately $32k against a high monthly burn rate of $250k, indicating a limited runway. This financial situation necessitates the urgent need for additional funding to sustain operations and support growth initiatives. Moreover, the year-over-year revenue decline from $2.5 million to $2.2 million raises concerns about the company's ability to maintain a consistent growth trajectory.

LAST WEEK’S POLL RESULTS

Would you invest in Our Bond?

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43 Votes

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• Valuation Cap: $40 million

• Minimum Investment: $100

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• Pre-Money Valuation: $89.3 million

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• Valuation Cap: $10 million

• Minimum Investment: $100