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Impact vs. Traditional Crowdfunding: Where Do Investors Lean?
Comparing median and average invested in impact vs non-impact crowdfunding deals
CHART OF THE WEEK 📈
This week, we compare the median and average amounts invested in impact investing equity deals with the amounts invested in non-impact crowdfunding deals. Our data encompasses every Reg CF and Reg A deal since May 2022.
For equity deals, the median amount raised by impact deals is higher than that of any deals. This means that investors tend to invest more in impact investing deals.
Overall, impact investing deals tend to raise more funding than other deals, but impact investing deals struggle to raise exceptionally high amounts of funding, meaning $5 million or more.
Interestingly, investors seeing an impact investing deal with at least $167,028 in funding will know that this deal receives more funding than 50% of other deals.
The higher median funding of impact investing deals compared to other deals reflects investors’ confidence and interest in impact startups. Investors tend to invest in clean energy and transportation deals particularly.
The lower average funding of impact investing deals compared to other deals shows that impact startups have more difficulty leveraging impressive investment amounts from the crowd than other deals.
Read more impact investing analysis here.
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PITCH REVIEW 💸
Brief: Garden For Wildlife (GFW) is countering the ecological impact of non-native plants by offering native, sustainably grown options. Their platform links consumers to accredited growers and provides tools for creating wildlife-friendly habitats. Nationwide delivery from various centers enables customers to purchase native plants online, curated to their specific location and gardening goals. This approach lets customers enjoy perennials beautifying their gardens and supporting local ecosystems and wildlife. It’s raising $2M at a pre-money valuation of $21.4M with a minimum investment of $250.
Key People: CEO Shubber Ali leads Garden For Wildlife. Ali worked with the National Wildlife Federation (NWF) to start the program and was then appointed CEO of the spin-off. Despite only owning 5% of the company, he can be considered a founder, along with the NWF. Ali worked for successful companies like Salesforce, KPMG, Accenture, and Capital One. Ali also founded two startups. His latest venture, Centriq Technology Inc, raised $5.4M and was acquired in 2021.
Interested in Garden For Wildlife? Access the deal report HERE 🔓📈
Summary
Here's what we like: Garden For Wildlife has already gained traction with a network of accredited growers, strong partnerships, and a user base. The company's collaboration with the National Wildlife Foundation further strengthens its credibility and market position. With nearly $1 million in annual revenue, Garden For Wildlife has established a foundation for growth and expansion.
GFW's partnerships are a key driver of its growth potential. The company partners with a network of 9,000 schools interested in using GFW's plants in their yards. Additionally, GFW has partnered with Wild Birds Unlimited, which incentivizes its customers to purchase plants from GFW to create natural environments for birds and enhance bird-watching experiences in their gardens.
GFW raised $5 million in capital, including $3.6 million from the NWF. The company has cash on hand of $2.5 million as of December 2023 and a monthly burn rate of $200,000. While the company has yet to generate profits, its strong partnerships and focus on infrastructure development position it for future growth.
Here's what we don't: Garden For Wildlife operates in a competitive market with direct and indirect competitors vying for market share. Companies like Home Depot, Bloomscape, and Amazon Plants offer similar products and services, while direct competitors like Native Gardeners, TN Nursery, and Direct Native Plants specifically focus on native plants and landscaping. This level of competition could challenge Garden For Wildlife to differentiate itself and capture a significant portion of the market.
While Garden For Wildlife aims to connect consumers and growers through its platform, it faces low barriers to entry in the industry. Competitors can easily replicate the concept and create similar platforms, potentially diluting Garden For Wildlife's market position.
Would you invest in Garden For Wildlife? |
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ON THE POD 🎙️
In this episode, Chris Lustrino sits down with Dane Witbeck, co-founder & CEO of Pinwheel. Witbeck illustrates the unique mission of Pinwheel, focusing on their innovative approach to children's technology. The discussion touches on the challenges and triumphs of navigating the tech industry, offering a unique perspective on entrepreneurship and startup growth.
Listen to the full episode here
TOP-RATED DEALS 🌶️
Sorting Robotics is automating cannabis manufacturing, wherein all repetitive manual labor tasks will be done autonomously. Specializing in AI and computer vision, they automate pre-roll production in the cannabis industry. The company tripled revenue from 2021 to 2022 and had positive cash flow in 2023.
Pre-Money Valuation: $50 million
Minimum Investment: $100
My French Cuisine (Debt)
My French Cuisine is an authentic French catering service based in San Francisco. Offering a variety of European dishes like Spanish Paella and French Ratatouille in reusable jars, it caters to the eco-conscious and on-the-go lifestyle.
Interest Rate: 11%
Minimum Investment: $10
MiKashBoks provides a digital financial transaction platform for the unbanked. Targeting over 500 million potential users, it offers a secure saving and borrowing method, already attracting 1,000 users in Sierra Leone and 14,000 in Nigeria.
Valuation Cap: $3 million
Minimum Investment: $100