From EVs to Flying Cars: The Top Vehicle Types Investors Are Funding in ECF

CHART OF THE WEEK 📈

By Léa Bouhelier-Gautreau | Read

Transportation startups are among the hottest sectors on equity crowdfunding platforms right now. The surge in innovation—especially around reducing carbon emissions—has captured investors’ attention. High price points in this space often translate into quick revenue growth and high valuations.

We set out to find which types of vehicles investors are backing the most. Out of 15 categories, here are the top 6 investors favored in Reg CF and Reg A+ equity raises over the past 18 months:

• Cars: Investors heavily backed car manufacturers and related software, especially in the EV space. LiquidPiston (internal combustion), Alpha Motor (EV), and Aptera Motors (solar vehicle) each raised millions.

• Planes: Electric planes and space-bound aircraft attracted substantial investments, with companies like Starfighters Space leading the way.

• eVTOL: Once seen as futuristic, flying electric vehicles are thriving on crowdfunding platforms. Doroni Aerospace and LIFT Aircraft stand out in this category.

Investors should remember that transportation startups face steep hurdles. They’re capital-intensive, enter competitive markets, and often take longer to reach profitability due to production costs, safety concerns, and regulatory challenges. But when a company succeeds, investors could see returns reminiscent of Tesla. This sector is primed for disruption with rising demand for better technology and sustainable solutions.

INVESTMENT ROUNDTABLE

By Sam Fiske / Watch

In this week's King's Crowd Investment Roundtable, Brian, Léa, and Teddy dive into the top crowdfunding raises from Q3 2024 and share essential insights on how investors can spot potential red flags in campaign pages. From misleading pro forma revenue charts to non-disclosed company valuations, the team breaks down what investors should be cautious of and emphasizes the importance of transparency in financials.

WEBINARS

Unlock the power of self-directed IRAs! Join us for an exclusive webinar on Tuesday, November 19th, with Mat Sorensen, CEO of Directed IRA, to discover how you can invest in alternative assets like real estate, startups, and more through your IRA. Learn about the benefits, current trends, and actionable steps to diversify your retirement portfolio. Register now with the button below 👇

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Timeplast is revolutionizing the future of plastics with its water-soluble material that fully disintegrates within 60 hours of being discarded, helping reduce microplastic pollution. The company has secured seven patents and partnered with major corporations like Nestle and Hello Bello. Timeplast’s primary customers are businesses in consumer goods and manufacturing seeking eco-friendly alternatives to traditional plastics. Its solution addresses the environmental harm caused by conventional plastics, offering products like Timeplast Raw and Timeplast Plus, which dissolve safely and quickly, providing a sustainable option to reduce plastic waste in landfills and oceans.

Key People: Timeplast's leadership team, led by CEO Manuel Rendon, an Environmental Engineer with sustainability expertise, is well-equipped to drive the company's environmental initiatives. Global Director of Sales & Operations Kyle Mecca, with a background in biomedical engineering and renewable energy, plays a key role in sales and business development. Staff Director Mariannela Fuentes leads website development and social media strategies, enhancing brand visibility, while LATAM Director José Rodriguez, with 35 years in sales, spearheads the company's Latin American expansion.

Summary

Here's what we like: Timeplast's growth potential is supported by the expanding U.S. bioplastics market, valued at $3.7 billion and growing at 19.3% annually. Its innovative water-soluble materials, which dissolve within 60 hours, address environmental concerns, offering a strong competitive edge. Partnerships with major brands like Nestle and Hello Bello boost the company's credibility.

Growing consumer demand for sustainable solutions and regulatory backing for biodegradable materials create a favorable market for Timeplast. The company stands out with its product innovations, such as programmable dissolution times, catering to diverse applications.

Timeplast’s seven patents and high valuation signal investor confidence. Expansion into new markets, especially in Latin America, and ongoing efforts to improve material durability and versatility could drive further revenue growth.

Here's what we don't: Timeplast faces several challenges that could hinder its growth and market potential. Its $98.9 million valuation adds pressure to achieve rapid growth, which may be difficult given the high projected cost of its materials—$2,000 to $4,000 per ton, compared to $1,200 for traditional plastics. Competing on price alone is a challenge.

Competition from larger players like Danimer Scientific and Solutum, with more resources and market presence, further complicates Timeplast's efforts to gain market share. The company must continually innovate to stay competitive, adding to operational pressures.

Financial concerns are also mounting a high burn rate and limited cash reserves. Technological challenges could make it harder for Timeplast to meet industry standards and gain market acceptance.

Last but not least, Timeplast and its CEO, Manuel Rendon, are currently being sued by investors.

LAST WEEK’S POLL RESULTS

Would you invest in Thrivelab?

🟨🟨🟨⬜️⬜️⬜️ 👍 (8)

🟩🟩🟩🟩🟩🟩 👎 (13)

21 Votes

Events

Join Kingscrowd’s Startup Showcase in LA

Sponsored by Fidelity Private Markets, this exciting Startup Showcase event on Wednesday, October 16th at 5pm at Industrious is your chance to hear pitches from five innovative founders, both local and from across the country, who are raising capital via RegCF—so anyone can invest. Whether you're investing $500 or $500,000, you’ll discover your next startup opportunity, from seasoned entrepreneurs with millions in revenue to founders just getting started. Plus, enjoy a unique networking experience with fellow investors and entrepreneurs. Don't miss out—back the future today!

STAFF PICKS 🌶️

Epi One

Epi One is developing a cutting-edge diagnostic testing platform for the early detection of cancer using DNA-based biomarker identification methods. The technology provides faster and more accurate detection for cancers like prostate, lung, and pancreatic.

• Pre-Money Valuation: $46.4 million

• Minimum Investment: $495

Greenfield Robotics

Greenfield Robotics is raising funds on Dealmaker Securities. The company has developed AI-powered robots to revolutionize agriculture. Greenfield Robotics’ robots can navigate the fields and clear weeds day and night and do not need harmful chemicals or herbicides. These state-of-the-art robots ensure healthier crops, lower maintenance costs, and clean and chemical-free food for consumers.

• Pre-Money Valuation: $31 million

• Minimum Investment: $1,001

Zero-Gravity

Zero-Gravity (Zero-G) is the only FAA-approved provider of zero-gravity flights in the U.S., offering astronaut training, research, and public enjoyment for over 20 years. The company serves government agencies like NASA, commercial space companies, research institutions, and private individuals while also collaborating with brands for marketing campaigns. Zero-G solves the challenge of accessing microgravity environments without space travel by offering parabolic flights that simulate weightlessness. This allows for scientific research, astronaut training, and public experiences in a cost-effective and practical way.

• Pre-Money Valuation: $23.3 million

• Minimum Investment: $100

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