How do IPO share prices compare to early crowdfunding rounds?

CHART OF THE WEEK 📈

Today, we are taking a look at the price-per-share performance of RegCF and RegA companies that have IPO’d over the years. Specifically, we will be comparing the earliest priced crowdfunding round to the IPO price of these companies.

*We did not include companies whose first crowdfunding round was a SAFE or Convertible Note, since the price that these instruments ultimately converted at is unknown.

• For companies that raised a priced equity crowdfunding round, we see that the overwhelming majority of these companies IPOd at significant premiums to the earliest crowdfunding round.

• Atlis Motor Vehicles saw a nearly 100x return in its IPO price of $27.50 compared to its earliest crowdfunding round of $0.29.

• Digital Brands Group, Draganfly, Innovative Eyeware, Janover Ventures, KnightScope, and Monogram all saw significant gains in price-per-share during their IPO.

• Keep in mind that early RegCF investors were not necessarily able to lock in these returns on IPO day. Lock-up periods are common for crowdfunding investors (usually 3-6 months) where investors can’t sell their shares. Nevertheless, early crowdfunding investors were no doubt able to lock in massive gains on many of these IPOs.

To learn more about crowdfunding and IPOs, you can read our in-depth story HERE

PITCH REVIEW 💸

Brief: Geyser Industries addresses global and situational water scarcity with innovative technology. Their Geyser System, a portable camping shower, efficiently uses water, which is ideal for campers and those in water-scarce regions. Receiving accolades and media features, the versatile system suits military, RV, boating, and disaster relief needs. The company is launching EcoShower, a water-saving shower head compatible with various settings. It will initially target RV users and areas with limited water access, with plans to expand into the home aromatherapy market. It’s raising $1.2M with a pre-money valuation of $9.9M and a minimum investment of $100.

Key People: Geyser Industries is led by founder and CEO Jonathan Ballesteros. Ballesteros has an undergraduate degree in industrial and aerospace engineering and an MBA. Before launching Geyser Systems, he gained valuable experience in engineering, project management, and product management positions at companies such as Dell and Stryker.

Interested in Geyster Industries? Access the deal report HERE 🔓📈

Summary

Here's what we like: Geyser Industries has developed an innovative solution to address the need for water savings during camping trips and the global water crisis with its patented portable camping showers and its upcoming shower heads. The company's portable shower product has garnered recognition and acclaim, receiving awards and accolades from reputable sources such as REI Coop, Condé Nast, and Outdoor Magazine.

One of the key advantages of Geyser Systems' showers is their exceptionally low water usage. Using only 0.8 gallons of water, these showers can provide a 15-minute cleaning experience for two people. The company's products are sold by distribution partners like REI and Camping World, and it should add two new distributors soon.

While the competitive landscape may have some players in the water-saving shower equipment market, Geyser Industries' patented technology, unique value proposition, and clear positioning provide a competitive advantage.

Here's what we don't: Geyser Industries operates in a slightly competitive market with its EcoShower product, which aims to address the global water crisis. While the product has received awards and recognition, it faces market challenges. The barriers to entry in the water-saving shower equipment industry are relatively low, allowing for potential new entrants to introduce similar products. This could increase competition and impact Geyser Industries' market share and profitability.

The company's monthly burn rate of over $50,000 suggests it heavily relies on external funding to sustain operations. This reliance on fundraising raises concerns about the company's ability to achieve profitability and generate positive cash flow in the near term. Also, its $10M valuation may be considered high compared to its current revenue and profit figures.

ON THE POD 🎙️

In the latest episode of Inside Startup Investing, Chris Lustrino welcomes Mike Gugat, the co-founder and CEO of jbrds. With Mike's extensive background in the sporting goods industry, he shares the compelling story behind jbrds' inception and its mission to create anatomically correct, functional footwear for kids. Mike elaborates on product development challenges, customer insights, and strategic marketing, showcasing jbrds’ dedication to promoting healthy foot development in children and their careful approach to scaling in a competitive market.

Listen to the full episode here

TOP-RATED DEALS 🌶️

Aladdin

Aladdin is a comprehensive digital banking platform for Nigerian entrepreneurs, individuals, and small businesses, offering financial services , like savings, lending, and e-payments in one app. It enhances business operations by including a marketplace for buying and selling goods, streamlining finance, and transaction management. Despite its recent launch, Aladdin boasts over 160,000 users and a transaction volume of $100 million, demonstrating its substantial impact and growth potential in the Nigerian market.

• Valuation Cap: $9 million

• Minimum Investment: $300

Fuel Health Kitchen (Debt)

Fuel Healthy Kitchen, a leading healthy restaurant in Philadelphia, is crowdfunding on Honeycomb. Known for fresh, locally sourced salads, wraps, bowls, paninis, and juices, it collaborates with local farmers and bakeries. With a loyal clientele and multiple awards, the restaurant, founded by Rocco Cima in 2008, seeks $60,000 to $124,000 to construct a new space in Center City, Philadelphia.

• Interest Rate: 13.5%

• Minimum Investment: $100

MF Fire

MF Fire, a clean-tech firm, innovates in wood heating to minimize environmental and health impacts. Leveraging patented technology, fire science, and AI, their stoves offer improved performance and air quality. With products available across the U.S. and Canada, the company has seen over 100% annual growth since 2018.

• Pre-Money Valuation: $17.9 million

• Minimum Investment: $398