Equity Crowdfunding Trends to Watch in 2023.
As an investor, you’re always on the lookout for new opportunities. And with equity crowdfunding becoming more popular every year, there’s no better time to get involved. But with so many options out there, it can be tough to know where to start. In this blog post, we’ll examine three equity crowdfunding trends to watch for in 2023 so you can be prepared for what’s to come in the next year.
- An Increase in the Number of Women-led Startups Seeking Funding.
One trend we’re seeing in equity crowdfunding is an increase in the number of women-led startups seeking funding. According to a recent report from Crunchbase, women-led startups accounted for 22 percent of all venture-backed companies in 2020, up from 18 percent in 2019. And as more women enter the startup space, we expect to see an increase in the number of women-led startups seeking equity crowdfunding.
2. A Rise in the Average Deal Size.
Another trend we’re seeing is a rise in the average deal size for equity crowdfunding campaigns. In 2020, the average deal size for an equity crowdfunding campaign was $4.3 million, up from $3.5 million in 2019, according to data from PitchBook. This trend is being driven by a increase in late-stage startups turning to equity crowdfunding to raise growth capital.
3. A Shift Towards Later-Stage Startups
Lastly, we’re seeing a shift towards later-stage startups turning to equity crowdfunding as a method of raising capital. In 2020, 43 percent of all equity crowdfunding deals were made by later-stage startups (defined as companies with Series B or later rounds of funding), up from 37 percent in 2019, according to PitchBook data. This trend is being driven by an increase in VCs and angels looking to co-invest alongside retail investors in later-stage deals on equity crowdfunding platforms.
As we’re a few months shy of 2023, there are a few growing trends in equity crowdfunding that investors should be aware of. These trends include an increase in the number of women-led startups seeking funding, a rise in the average deal size, and a shift towards later-stage startups turning to equity crowdfunding as a method of raising capital. For investors looking to get involved in equity crowdfunding, these trends present some great opportunities to get involved with some high-growth businesses at an early stage.
