Equity Crowdfunding Worldwide
Stride Equity
We combine the resources of venture capital with the power of equity crowdfunding.
Long story short
An increasing number of companies choose equity crowdfunding to raise capital and accelerate their growth journey. Australian companies raised A$86 million in FY22 through the crowd.?
Equity crowdfunding has also become a cornerstone of overseas startup ecosystems since it allows companies to access funds earlier and faster than the traditional route.
Success stories such as the acquisition of Car Next Door by Uber show that equity crowdfunding is well accepted today by established businesses, venture capitalists and angel investors.?
The long story
Australian companies raised A$86 million in FY22 through the crowd. This is a new high, again. Equity crowdfunding has been popular since its inception in Australia a few years ago. Founders around the globe also recognise its strategic value. Therefore, the sector is expected to show robust growth over the next few years.?
United States of America
The US equity crowdfunding sector is a few years ahead of us. Companies raised already in 2019 more than US$100 million through the crowd. Plus, larger VCs started to appear on the platforms as lead investors. In addition, the pandemic accelerated the growth of the industry. A year later, more than US$200 million have been raised through the crowd and more than US$500 million in 2021.
United Kingdom / Europe
In 2020, almost 550 million British pounds were raised through the crowd and even more last year across 570 equity crowdfunding rounds. Only private equity/venture capital firms (+1350) and angels (+600) made more deals in the UK last year. Impressive is that back in 2011, only 8 companies raised a round through the crowd. Today equity crowdfunding is a central part of the UK's startup and scaleup community.
Outside of the UK US$280 million were raised through equity crowdfunding in Europe in 2020. The amount has almost quadrupled since 2013 (US$63 million).?
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Success stories
A rising number of companies show that an equity crowdfunding campaign can be the foundation of a global success story. The examples below showcase the value of going through the crowd.
Australia
A prominent Australian equity crowdfunding success story is Car Next Door. The peer-to-peer car-sharing platform raised A$770,000 through the crowd and got acquired by Uber, announced earlier this year.
United States of America
Heliogen is a renewable energy technology company unlocking the power of sunlight to replace fossil fuels. The company raised US$1.6 million on Seedinvest in 2017 and went public in late 2021 at a US$ 2 billion valuation. Heliogen was the first equity crowdfunded unicorn that went public in the US. Prominent investors include Bill Gates and Steve Case of Revolution Ventures.
United Kingdom / Europe
Paysend is a payment platform that enables customers and businesses to pay, hold and send money online anywhere and in any currency. The company was founded in 2017 and raised almost 90 million British pounds through Seedrs in three rounds. According to TechCrunch, the company's valuation in the last round of funding is likely to have exceeded US$700 million. However, Paysend did not disclose the valuation.
Final Note
Equity crowdfunding keeps growing as a sector, allowing companies to bring in early believers/investors. Businesses that manage to build and keep their crowd engaged can lay the foundation for global success through equity crowdfunding rounds. Furthermore, more private equity professionals, venture capitalists and angel investors see the strategic value of equity crowdfunding and support their portfolio companies along the journey or choose to co-invest with the crowd to reduce their own risk.
That is why we are sure that we will see many more successful exits from startups and scaleups that went through one or multiple equity crowdfunding rounds soon.?