Discover How Your Investments are Fueling Growth

CHART OF THE WEEK 📈

By Léa Bouhelier-Gautreau | Read

Companies raise funding to grow their businesses, but their success in using cash to fuel growth varies. As an equity crowdfunding investor, you might wonder: “How are the companies I invested in using my money?” To give you more insights, we compiled the top five companies actively raising a second, third, or fourth Reg CF or Reg A+ round. These companies demonstrated significant revenue growth between 2022 and 2023, thanks to their previous ECF raises.

• Neighborhood Sun had the most impressive growth, generating nearly $3 million more in 2022 than in 2023. The company closed its third round in September 2022, raising $920k, which fueled its growth.

• Pacha achieved the fastest year-over-year growth, with revenue increasing by 491% from $352k to $2 million—a remarkable feat for a bread business! It successfully raised $721k in June 2023.

• Nuudii System also saw impressive growth, reaching $2.6 million in sales of its “boobwear” products in 2023. Nuudii raised over $300k in its last round and invested in marketing, which led to the company going viral on TikTok.

• Contractor + is currently raising its last round and managed to more than double its revenue in 2023. The company raised over $100k last year without the help of any marketing agency.

• Eli Electric Vehicles doubled its revenue, driven by the $1 million it raised last year in its third ECF round. With a car price of $11,900, the company grew its sales from 100+ cars sold in 2022 to 220+ in 2023.

To learn more, including charts on the amount of capital raised by VC vs. non-VC backed firms, read the full article here.

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

On 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 Léa Bouhelier-Gautreau \ Deal Report

Brief: Future Cardia is a healthcare and pharmaceutical company focused on cardiac monitoring, specifically developing a heart failure cardiac monitor. Heart failure affects over 6 million patients in the US, leading to significant healthcare costs and frequent hospitalizations. Future Cardia's solution is a small, implantable device using remote monitoring and AI to gather comprehensive cardiac data, such as ECG and heart sounds. This device, implantable through a simple two-minute office procedure, aims to provide continuous monitoring, enabling proactive interventions and reducing unnecessary hospital visits.

Key People: CEO Jaeson Bang, with over 20 years of experience in clinical and tech operations at Medtronic and Abiomed, and an MBA from Northwestern, leads the company through product development and market entry. Data Scientist Anatoly Yakovlev, PhD from Stanford, brings expertise in neuro-modulations and machine learning. VP of Operations Adam Gullickson, with 21 years in R&D and regulatory affairs and a biomedical engineering background, guides FDA approval processes. VP of Systems Engineering Steve Zielinski, with over 20 years in medical device R&D, focuses on AI integration.

Summary

Here's what we like: Future Cardia's innovative implantable cardiac monitor uses advanced remote monitoring technology and artificial intelligence for continuous and accurate cardiac data collection. This technology surpasses traditional wearable devices in terms of accuracy and patient compliance, making it a preferred option for healthcare providers. The ease of implantation and continuous data provision position Future Cardia advantageously in the market.

The company's collaborations with renowned entities like Johnson & Johnson Innovation and Stanford's StartX accelerator program validate Future Cardia's technology and business strategy. Additionally, significant investments from Sandhill Angels and Sixto Global Capital underscore the confidence in the company's potential.

Favorable investment terms and a strong financial outlook support the case for Future Cardia. With a pre-money valuation of $44.2 million and a share price of $3.00, investors have an attractive entry point to participate in the company's growth. Key growth drivers include trends in remote monitoring and AI integration in medical devices to achieve FDA approval and commercialization by 2025. The company's low manufacturing costs and high-profit margin of 81%, combined with substantial investor support, indicate a clear path to profitability and market success.

Here's what we don't: One primary concern for Future Cardia is the high regulatory burden of bringing its cardiac monitoring device to market. The company, still pre-revenue, relies on FDA approval expected in 2025. Any delays or complications could significantly impact its timeline and financial projections. Regulatory hurdles are unpredictable and can add substantial costs and delays to product development.

Market challenges also pose a potential barrier. The cardiac monitoring market, though sizable, is highly competitive with established players like Medtronic and Abbott Laboratories. These competitors have significant resources and strong brand recognition, making it difficult for Future Cardia to gain market share. To succeed, the company must demonstrate clear advantages and secure substantial market adoption.

Technological and market adoption risks could be significant growth inhibitors. Future Cardia's AI-driven technology may face resistance from healthcare providers who are used to traditional monitoring methods, as adopting new medical technologies can be slow and challenging.

LAST WEEK’S POLL RESULTS

Would you Invest in EarthGrid?

🟨🟨🟨🟨⬜️⬜️ 👍 (21)

🟩🟩🟩🟩🟩🟩 👎 (25)

46 Votes

🎙 INSIDE STARTUP INVESTING

By Sam Fiske \ Listen

In this episode, we talk to Joel Stanley, CEO of AJNA BioSciences. Joel discusses his transition from co-founding Charlotte’s Web, a pioneer in the CBD industry, to establishing AJNA BioSciences. He shares the powerful backstory of how his work with CBD began, notably with Charlotte Figi, a young girl whose severe seizures were dramatically reduced using a CBD-rich extract. This episode gets into AJNA BioSciences’ mission to integrate plant-based medicines with modern pharmaceutical practices, emphasizing their current focus on developing botanical drugs for conditions like autism spectrum disorder and anxiety through rigorous FDA-approved clinical trials.

STAFF PICKS 🌶️

Vroom Solar

The company makes do-it-yourself solar energy kits for portable applications. Vroom Solar’s off-grid DIY solar energy kits are expected to produce five to ten times the output of traditional battery-based portable energy systems and are more cost-effective and sustainable. The product is currently in development, and the company is pre-revenue, with the proof of concept and prototype already established.

• Pre-Money Valuation: $15 million

• Minimum Investment: $252

Mother Road Brewing

The brewery brews distinguished beers and connects the community one pint at a time. Mother Road Brewing Company offers taproom hospitality and distribution across three states, of which 30% of the revenue is generated from the taprooms. The business is led by industry veterans and has generated $10 million in revenues.

• Pre-Money Valuation: $40 million

• Minimum Investment: $250

Tuleva

It is an energy transition raw materials company focused on battery, renewable energy, and electric grid markets. Tuleva makes battery-grade lithium materials, high-purity aluminum, and silicon nanomaterials using hard rock lithium ores. The business uses its low-cost and environmentally clean manufacturing process, and ensures a stable supply of lithium in important markets.

• Pre-Money Valuation: $47.2 million

• Minimum Investment: $1029