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A Surprising Leader Emerges Among ECF Platforms
Explore the top platforms that shaped equity crowdfunding in the past two years.
Editor’s Note: We're thrilled to announce our next Demo Day on December 6th! This is your chance to hear from the founders of top-rated startups pitch to our investment analyst team and ask them questions directly about their business. Secure your spot by signing up here.
CHART OF THE WEEK 📈
Our latest analysis breaks down the investment distribution across platforms for Reg CF and Reg A from 2022 to 2023:
StartEngine and Wefunder are the two biggest Reg CF platforms, while Dalmore Group is the largest broker-dealer for Reg A raises.
Dealmaker Securities hosted a small number of growth stage raises, but investors invested on average around 10x on each Dealmaker deal than on Wefunder or StartEngine.
Investors also backed startups through 30 other platforms representing 5% of all the funds invested in equity Reg CF and Reg A deals online.
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PITCH REVIEW 💸
Brief: AtomBeam Technologies is tackling the IoT market's data challenge, offering software that shrinks IoT data files by 75%, enhances security, and is 400 times faster than traditional compression. With the number of IoT devices set to hit 75.44 billion by 2025, AtomBeam's method, needing just 10% of processor power, caters to organizations swamped by data. It’s raising $2M at a pre-money valuation of $69.9M with a minimum investment of $496.
Key People: AtomBeam was co-founded by CEO Charles Yeomans and CTO Asghar Riahi. Yeomans has over six years of relevant industry experience and demonstrated high-level managerial skills. He has successfully raised funds for previous companies and has experience leading teams. Riahi has over 11 years of relevant industry experience and brings technical expertise to the team.
Interested in AtomBeam? Access the deal report HERE 🔓📈
Summary
Here's what we like: The company’s advanced software technology, powered by machine learning, offers a remarkable reduction in IoT data files while incorporating robust security measures. This breakthrough can transform the machine data age and address the growing need for efficient and secure data transmission.
AtomBeam has already established itself as a key player in the industry, with $2.4 million in contracts from the Department of Defense (DoD) and partnerships with prominent industry leaders, including USAF, Saab, Nvidia, Intel, and the US Space Force. With its high margin level and recurring revenue model, AtomBeam has a strong foundation for sustainable growth and profitability.
With the proliferation of IoT devices across various sectors, the demand for efficient data transmission and storage solutions is continuously growing. AtomBeam’s hyperefficient machine communication technology positions it well to capture a significant share of this market.
Here's what we don't: The company's nearly $70 million valuation appears quite optimistic. With a net income loss of over $1.4 million and no revenue other than government grants, the company's valuation seems disconnected from its actual financial performance. Investors should carefully evaluate the company's growth potential and revenue generation capability before considering an investment. AtomBeam is clearly priced on its potential upside, which investors should consider.
The company's monthly burn rate of around $200,000 indicates a significant cash burn, which requires careful monitoring to ensure sufficient working capital and financial stability. The company has yet to record any commercial revenue, raising concerns about the company's ability to attract and retain customers and generate sustainable revenue over the long term. Therefore, it will likely take AtomBeam a long period of time to reach profitability.
Would you invest in AtomBeam? |
ON THE POD 🎙️
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TOP-RATED DEALS 🌶️
The gig economy is surging, with 59 million Americans freelancing in the past year, a trend set to escalate. Freelancers and entrepreneurs, however, grapple with showcasing their diverse services. Jauntboards provides a solution, enabling them to create and share boards detailing their offerings, simplifying the display of their varied skills and services. Tested by 100 users and brands, Jauntboards supports entrepreneurs in daily business tasks, despite being in the pre-revenue phase.
Valuation Cap: $5 million
Minimum Investment: $100
Reel Products aims to impact the household paper industry with its sustainable, tree-free, and plastic-free bamboo toilet paper. With a stylish design and eco-friendly packaging, it's tapping into the growing sustainable product market. Available in over 900 Target stores and backed by celebrities, Reel Products is anticipating over $18 million in revenue this year.
Valuation Cap: $55 million
Minimum Investment: $100
The Drivers Cooperative (Revenue Share)
The Drivers Cooperative is a driver-owned ride-hailing service that ensures drivers earn more and have a say in key decisions. The company has over 10,000 drivers and $6.1 million in 2022 revenue.
Revenue Share Percentage: 2%
Minimum Investment: $100