Last Year's Top Revenue-Growing Startups in Crowdfunding

CHART OF THE WEEK 📈

By Teddy Lyons | Read

In today’s Chart of the Week, we explore active issuers in the equity crowdfunding landscape with the highest revenue growth from 2022 to 2023. 

• Pacha, a startup making organic and gluten-free bread, grew revenue 491%.

• Original Brands, a premium beer company, grew revenue 463%.

• Our Bond, an AI-powered personal security service, grew revenue 419%.

• b0arding.com, a booking platform partnered with Booking.com, grew 409%.

• Finally, IoT technology firm AtomBeam grew revenue 387%.

• While raw revenue growth is an interesting metric to analyze, investors should consider the baseline revenue when evaluating companies.

• For example, OurBond's revenue increased from $1.38M to $7.1M, which is more impressive than a company's increase from low six figures to mid-six figures.

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In this episode, we analyze startup failure rates in equity crowdfunding and explore why certain ventures succeed while others don’t. We also feature a detailed pitch review of Pivotal Health, which provides on-demand, in-home healthcare.

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PITCH REVIEW 💸

By Teddy Lyons \ Deal Report

Brief: StartGlobal is a comprehensive platform for launching and managing US-based LLC businesses. StartGlobal’s core software platform automates filings, document preparations, digital signatures, and workflow management. This includes LLC formation, government filings, opening bank accounts, and bookkeeping/tax software. Additionally, the company offers a complete payments platform for clients to invoice and accept payments. StartGlobal also offers access to lawyers and CPAs to assist in contracts and tax filings. The company has heavy-hitting investors, including Twitter founder Biz Stone, Coinbase CTO Balaji Srinivasan, and Techstars. The company is tracking 100% year-over-year revenue growth in 2024 and has booked $3 million in revenue to date.

Key People: StartGlobal is led by Sanjay Nediyara (Founder / CEO) who previously worked for Google as a Community Manager, Google Developer Group Cochin. He also served as a Senior Android Developer at MobME Wireless Solutions, Director at Heuristics Technosol, and Android Developer at CyberPrism Limited. He is joined by Sandeep Suresh (CTO), who previously served as a Consultant at Tata Consultancy Services. Finally, Gautham Gautham (Head of Growth) runs an AI-consulting firm HowToCBC and also served as Co-Founder and Director of Pupilfirst and CEO of MobME Wireless Solutions.

Summary

Here's what we like: Starting a business is a confusing and complex process with many steps. This includes filing an LLC, opening a company bank account, finding a lawyer/accountant, tax filings, invoicing/payments…the list goes on and on. By automating all of these processes in one comprehensive solution, StartGlobal is serving a need that all new business owners likely need when starting a company. Additionally, by hyper-focusing on the needs of an LLC, StartGlobal stands out amongst competitors that try to service all types of business formations like S-Corps, PBAs, etc. The company has strong initial traction and clear product-market-fit, and is on track to double revenue in 2024.

Here's what we don't: While the company is clearly serving a need, the competitive landscape is quite vast. Major legacy competitors like Intuit and LegalZoom have a firm grip on the business software market and will likely not lose much market share to StartGlobal. By focusing on just LLCs and micro-businesses, the ceiling is relatively capped for StartGlobal compared to competitors. Hence, the company’s differentiation in specializing in LLCs is also an inhibitor. Additionally, the $12.5 million valuation is ~12X 2023 revenue, which is quite high even in the startup landscape.

LAST WEEK’S POLL RESULTS

Would you invest in Syntensor?

🟨🟨⬜️⬜️⬜️⬜️ 👍 (9)

🟩🟩🟩🟩🟩🟩 👎 (23)

32 Votes

STAFF PICKS 🌶️

Pacha

Pacha specializes in organic, gluten-free, and vegan sprouted buckwheat bread, catering to health-conscious consumers and those with dietary restrictions. Pacha’s products are free of the top 9 allergens, emphasizing sustainability and nutrition. Pacha has shown impressive growth, achieving a $3 million run rate and a 600% year-over-year sales increase.

• Pre-Money Valuation: $11.2 million

• Minimum Investment: $200

NPCx

NPCx is developing AI technology that enhances the realism of non-playable characters (NPCs) in video games and films. The company's AI-driven solution, launched with TrackerX-Standard in 2023, automates the animation of NPC movements, creating more natural and lifelike character interactions while reducing the manual workload for animators. Serving clients like 2K, Gearbox Games, and Netflix, NPCx addresses the challenge of creating fluid animations, improving immersion, and cutting down production time and costs.

• Valuation Cap: $25 million

• Minimum Investment: $250

Notey

Notey has created an AI-powered platform that teaches users to play instruments through interactive games, turning any instrument into a game controller. The platform integrates existing music curricula and has partnered with 30 educational institutions in the US. In 2024, F6S recognized Notey as a top-five Music Education Startup.

• Valuation Cap: $9 million

• Minimum Investment: $100

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