Spotlight: How AAPI Founders Impact Online Private Markets

CHART OF THE WEEK 📈

In celebration of Asian American, Native Hawaiian, and Pacific Islander (AAPI) Heritage Month in May, we aim to spotlight the remarkable achievements of AAPI founders in the online private markets. The following data pertains to companies that commenced fundraising on or after January 1, 2023, encompassing both equity and debt deals across Regulation CF, A+, and D. It's important to note that much of this data is derived from self-identifying information; hence it may not fully represent the entire dataset, as data on race or ethnicity is unavailable for many founders:

• Out of the 1,887 founders for whom we collected data, 183 are Asian American, Native Hawaiian, or Pacific Islander. These AAPI founders are associated with 143 companies (some companies have multiple AAPI founders).

• AAPI founders constitute approximately 9.7% of the founders we have data for during this period. By comparison, according to the 2022 census, approximately 6.2% of the US population identifies as AAPI.

• From January 1st, 2023, companies with at least one AAPI founder have collectively raised $49,074,836  via the online private markets.

• The top AAPI-founded company by total funds raised since 2023 is Substack, securing $5 million in commitments.

• Following closely behind is Perimeter, with $4.4 million raised by an AAPI founder.

• Another notable AAPI-founded venture, Knightscope, garnered $4.2 million from the crowd.

To learn more, including charts on the percentage of equity crowdfunding investments towards deals with at least 1 AAPI founder, click HERE.

Together with Finlete

Now Everyone Can Invest in Sports: Learn How with Finlete’s Rob Connolly

Join us on June 5th at 1:00 PM ET for an exclusive KingsCrowd webinar featuring Rob Connolly, Co-founder & CEO of Finlete. Connolly, a seasoned entrepreneur with a history of founding and scaling startups to successful exits, will discuss how Finlete is revolutionizing sports investments. Finlete signs brand contracts with promising athletes in exchange for a percentage of their future earnings and then sells shares to sports fans, allowing anyone to own a piece of the athlete’s potential success. This model gives fans both an emotional and financial stake in an athlete’s journey through exclusive experiences and public offerings on the platform.

Curious how to own a piece of the potential upside of real athletes? Don't miss this chance to hear Rob Connolly and Chris Lustrino discuss the future of fan engagement and sports investments!

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau

Brief: Neighborhood Sun Benefit Corp is transforming solar power access with its tech-enabled platform, Sun Engine. This platform makes solar energy accessible, transparent, and responsive to everyone, regardless of location or economic status. It’s raising $618K with a Valuation Cap of $25M and a minimum investment of $250.

Key People: Neighborhood Sun is led by CEO Gary Skulnik. Skulnik, a veteran clean energy entrepreneur and climate advocate, has a rich history in renewable energy, transitioning from journalism to pro-environment lobbying and founding Clean Currents. CTO John Wilson brings nearly two decades of product and software expertise, driving innovation with the Sun Engine software platform. With a strong sales and commercial energy efficiency background, CRO Cara Humphrey leads revenue growth and market expansion. VP of Marketing Emily Tokarowski, with nearly five years at the company, plays a crucial role in promoting Neighborhood Sun’s mission.

Interested in Neighborhood Sun? Access the deal report HERE 🔓📈

Summary

Here's what we like: Neighborhood Sun Benefit Corp's innovative community solar technology platform, Sun Engine, positions the company at the forefront of the renewable energy sector. By making solar power more accessible, customizable, and transparent, Neighborhood Sun taps into the growing demand for clean, sustainable energy solutions, all while providing cheap energy to its customers.

The company has made impressive progress since its last raise in 2022. It manages 136 community solar farms across seven states, generating close to $4.9 million in revenue in 2023 - a growth of 156.5% from 2022. Such growth indicates the company's strong product-market fit and consumers and businesses' increasing adoption of renewable energy solutions.

The backing by renowned VC investors such as TEDCO, ImpactAssets, the Chesapeake Bay Seed Capital Fund, and the hedge fund Meyer Global Management further bolsters confidence in Neighborhood Sun's strategic direction, operational capabilities, and market opportunity. This support provides the financial runway needed for continued growth and validates the company's vision and market approach.

Here's what we don't: Neighborhood Sun operates against competitors such as Solstice, Nexamp, and Ampion. These competitors could limit Neighborhood Sun's market share growth. This competitive landscape could pressure profit margins and market expansion efforts, particularly as the company seeks to manage and expand its portfolio of 136 community solar farms across seven states.

While the company has shown impressive revenue growth, with a year-over-year increase of 156.50% to $4.8 million in revenue in 2023, it reported a substantial net loss of $1,622,860 at the most recent fiscal year-end. This discrepancy between revenue growth and profitability may raise concerns about the company's pathway to profitability, particularly if it continues to incur significant expenses without a proportional increase in revenue.

LAST WEEK’S POLL RESULTS

Would you invest in Miso Robotics?

🟨🟨🟨🟨⬜️⬜️ 👍 (45)

🟩🟩🟩🟩🟩🟩 👎 (63)

108 Votes

Join us at SuperCrowd Chicago on June 12 for an exciting conference featuring Kingscrowd's own Scott Kitun! Hosted by The Super Crowd, Inc., this event will bring together investors and entrepreneurs at Columbia College Chicago for a day of insights and networking. The event will kick off with a keynote address by Chicago’s renowned historian Shermann “Dilla” Thomas, highlighting the influence of the Black community. Don’t miss the opportunity to learn about the latest in investing and capital-raising strategies.

STAFF PICKS 🌶️

Duet

Duet aims to disrupt healthcare transportation management through its data-driven technology platform. Duet leverages data and AI to modernize transportation services, assisting with booking, scheduling, and billing. The platform, which has customers in eight states, boasts an annual run rate of $160,000 and achieved 240% year-over-year growth from 2021 to 2022.

• Valuation Cap: $7 million

• Minimum Investment: $1,000

Koios Medical

Koios Medical aims to advance its AI-powered software for diagnosing cancer. The company combines AI and medical imaging to revolutionize radiology with its SmartUltrasound technology. SmartUltrasound provides scalable, accurate, simple, and fast analysis for thyroid and breast conditions and auto-generates reports. The technology has received FDA and CE mark approvals and is reimbursement-eligible.

• Pre-Money Valuation: $60 million

• Minimum Investment: $1,000

Pacha

Pacha distinguishes itself in the US bread market by catering to health-conscious consumers with its organic and gluten-free bread made from sprouted buckwheat. Pacha's products are also vegan and free of the top 9 food allergens, aligning with its mission to promote health and sustainability. The company has achieved impressive growth, boasting a $3 million run rate, 600% year-over-year sales growth, and over 70% quarter-over-quarter online revenue growth in 2023.

• Pre-Money Valuation: $11.1 million

• Minimum Investment: $200