July 2024 in Review: Crowdfunding Trends and Key Performers

CHART OF THE WEEK 📈

By Teddy Lyons | Read

July saw a retreat in capital commitments across the entire crowdfunding space (Reg CF/A+, Equity/Debt), down nearly 27% from June. Nonetheless, Wefunder’s performance and the Media, Entertainment, and Publishing industry stand out in this month’s financial flow. Here are some key takeaways from private investing last month:

• July closed with $28.1 million in committed capital across equity and debt deals, down significantly from $ 38.6 million in June.

• Wefunder came out on top for Reg CF equity dollars invested for July 2024 with $6.9 million.

• Media, Entertainment & Publishing was the most popular industry for the month, bringing in $4.8 million from Reg CF equity offerings.

• 55 equity deals closed in July: 53 Regulation CF deals and 2 Regulation A+ deals.

• In July, 104 new deals went live: 64 Reg CF equity deals, 4 Reg A+ equity deals, and 36 Reg CF debt & revenue deals.

August 13th: Learn about this New Benchmark for Venture Capital

This month, OPEN is launching their Unicorn® Index, an innovative new benchmark designed to track the performance of 50 large U.S.-based private unicorns. 

Why Is This a Big Deal?

Indexing allows for passive investment strategies – or simply put, investment funds that are pegged to the performance of a particular index (think, most ETFs). These investment vehicles are often low-fee, diversified, and liquid, making them accessible and attractive to a wide range of investors, from retail to pensions. 

Today, there is no institutional-grade index product for venture capital. OPEN is looking to change that with the launch of the Unicorn® Index. 

“Just as index has become the language of public markets, we envision bringing the principles of indexing to the private markets.” 

- Larry Fink, CEO Blackrock

Here’s what that means for you:

• You’ll have an unmatched view of pricing. OPEN’s index is externally administered, merges private and public data, and is enriched by multiple sources of secondary transaction data

• Access to underlying company pricing data. If you invest in pre-IPO companies, you can subscribe to open’s Venture Capital Data Platform for pricing information on a company-by-company basis.

• In the future, access to investible, low-fee index fund products. Just as the Vanguard S&P 500 ETF (VOO) tracks the S&P 500 index, you can expect more fund managers to launch passive investment strategies in the private markets. 

Learn more about how OPEN’s Unicorn® Index and pricing data can help you invest in pre-IPO companies in next week’s webinar.

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Our Bond democratizes personal security with its AI-powered platform, Bond, offering customizable security services via a phone app. Users gain access to electronic monitoring and 24/7 support from live security agents, providing rapid response in emergencies. Catering to individuals, businesses, and communities, Bond integrates modern technology to address complex security threats, ensuring personalized protection and peace of mind.

Key People: Chairman and CEO Doron Kempel founded and sold two tech companies, SimpliVity and Diligent Technologies, for a total of $900 million. He brings crucial expertise in scaling innovation. Rob Quimby, Head of Product Management, leverages his decade-long experience in AI and mobile solutions to advance Bond’s personal safety services. Mike Hollick oversees Command Center Operations, bringing over 20 years of experience in managing large-scale customer care operations. Joseph DeSalvo, Global Head of Security, adds credibility with his background as an FBI Special Agent and former Chief Security Officer at Blackstone.

Summary

Here's what we like:  Our Bond’s AI-driven technology and 24/7 live, personal security agents provide a strong competitive edge. Its app offers tailored security solutions to help users keep peace of mind and has a high adoption and retention rate.

CEO Doron Kempel leads with extensive experience and a proven track record in entrepreneurship and security. A former Israeli Army member with a Harvard MBA, Kempel has successfully sold two startups for a total value of $900 million.

Notable customers bolster the bullish outlook, as some of the world’s largest corporations offer Bond as a benefit to their retail employees. A recent deal with a global brand to offer Bond services to 200 million users worldwide will potentially drive substantial growth.

Our Bond has shown impressive revenue growth, with a 419% increase from $1.4 million in 2022 to $7.2 million in 2023. Favorable investment terms, including Preferred Equity with a pre-money valuation of $70 million and a 10x revenue multiple, make it attractive. The company has raised over $31 million from institutional investors like Jerusalem Venture Partners, Eastward Capital Partners, and Fifth Down Capital.

Here's what we don't: Although Our Bond operates in a slightly competitive market, it faces competition from other personal security solutions such as Noonlight, bSafe, and The UrSafe App. Despite Our Bonds’s competitive edge, some customers may be attracted by less comprehensive and cheaper solutions.

Operational challenges also include high recruitment and training costs for skilled security personnel. The private security industry requires continuous investment in training to keep staff updated on the latest security procedures and technologies. High labor costs could limit the company’s ability to scale efficiently, impacting service quality and customer satisfaction.

Financially, Our Bond’s high capital intensity and the need for continuous investment in technology, recruiting, and training could impact cash flow and limit its ability to become profitable. Indeed, the company’s $4 million profit, appearing on its financials, is converting to a Convertible Note. Our Bond had $1.1 million cash on hand as of June 2024 and a high monthly burn rate of $650K. Significant debt levels, with $11.7 million in long-term debt, could impact future financial stability.

LAST WEEK’S POLL RESULTS

Would you invest in b0arding.com?

🟩🟩🟩🟩🟩🟩 👍 (24)

🟩🟩🟩🟩🟩🟩 👎 (24)

48 Votes

STAFF PICKS 🌶️

By Teddy Lyons

AlignerAI

AlignerAI enhances dental outcomes by shortening treatment times and minimizing patient burnout. AlignerAI is finalizing prototypes, with plans for in-house beta testing by June 2024.

• Valuation Cap: $10 million

• Minimum Investment: $350

MyFloraDNA

MyFloraDNA uses CRISPR technology to increase peanut safety. The company focuses on removing allergens from peanuts to improve consumer safety and support growers and food processors through gene-editing and plant transformation techniques.

• Pre-Money Valuation: $17.6 million

• Minimum Investment: $245

Neurocarrus

Neurocarrus is raising funds to advance its drug candidate N-001, which offers neuron-specific pain relief without addiction risks. N-001 is a novel, long-acting anesthetic-like drug designed to reduce or eliminate the need for opioids by calming neuron activity that causes pain.

• Valuation Cap: $11.2 million

• Minimum Investment: $100