A look at July in online startup investing, by the numbers

EDITOR’S NOTE:

Heyyo! Welcome back to Pitch Reviews, the fusion of KingsCrowd’s Monday Memo and my Pitch Reviews newsletter. Each week we’ll share a chart of the week, a pitch review of an active deal, and a quick look at three other recently top-rated deals in the CF landscape.

Scott Kitun

CHART OF THE WEEK 📈

• The month of July closed with $31,333,163 in committed capital across equity and debt deals, down 28% slightly from $43.7 million in July.

• StartEngine came out on top for Reg CF equity dollars invested for July 2023 with $12,049,353.

• Financial & Insurance Products & Services was again the most popular industry for the month, bringing in $4,642,613 from Reg CF equity offerings.

• 53 equity deals closed in July, 50 Regulation CF deals, and 3 Regulation A deals.

• 88 new deals went live in July, 55 Reg CF equity deals, and 29 Reg CF debt deals. 4 Reg A deals went live in July.

Masterworks: Ultra-Wealthy Investors Fall in Love with This App (Here’s Why)

While financial markets tanked in 2022, one market saw its best performance in 277 years. The blue-chip art market – hauling in nearly $18 billion. Millionaires and billionaires love this market, but now you don’t need to be one to get access.

Masterworks is the fintech platform that lets you diversify your portfolio in this currently booming market. Their last three sales in 2022 handed investors 10.4%, 35.0%, and 13.9% net returns, respectively.

After all, contemporary art prices outpaced the S&P 500 by 131% from 1995-2021 with a near 0 correlation to stocks, according to Citi. Thanks to Masterworks, investing in art by Banksy, Picasso, and Basquiat is easier than using ChatGPT to automate your emails.

Interested? Offerings can sell out in just minutes, but Pitch Reviews readers can skip the waitlist with this referral link.

PITCH REVIEW 💸

Brief: As the first online health food store offering organic foods in plastic-free packaging, Sun & Swell prioritizes the planet and consumer health. The company aims to move the food industry away from single-use plastic by offering sustainably packaged snacks. Sun & Swell’s product line includes a variety of healthy snacks like trail mix, nuts, and dried fruits, all packaged in compostable materials. It’s currently raising $617,999 at a valuation of $18M with a minimum investment of $500.

Key People: Co-founder and CEO Kate Flynn, co-founder and CSO Bryan Flynn

Not an Edge Member yet? Unlock the Ratings 🔓📈

Summary

Here's what we like: Sun & Swell offers healthy, organic foods in plastic-free packaging. With an emphasis on sustainability and environmental impact, Sun & Swell is well-positioned to capture some market share in the US healthy snacks market. The company's commitment to ending single-use plastic in the packaged food industry is commendable and aligns with the growing consumer demand for eco-friendly products.

Despite being in the early stage of development, Sun & Swell has already achieved significant revenue growth, with sales reaching $950,562 in the most recent fiscal year. This demonstrates the market's positive response to their offerings and validates the viability of their business model. Sun & Swell's certification as a B-Corp further enhances its reputation as a socially responsible company.

Here's what we don't: Sun & Swell operates in an extremely competitive market, with direct competition from brands like Askinosie, Thrive Market, Hive, and Nature’s Path Organic. These competitors have established footholds in the healthy snacks market and have likely built strong brand loyalty among consumers. Sun & Swell will face significant challenges in gaining market share and standing out in such a crowded landscape.

While Sun & Swell aims to differentiate itself by offering organic and healthy food in plastic-free packaging, it is important to note that other brands have started to prioritize sustainability as well. As more companies adopt eco-friendly packaging practices, Sun & Swell's unique selling proposition may become less significant, making it difficult for the brand to maintain a competitive advantage. Additionally, the company is slightly overvalued at $18 million for the food and beverage industry.

TOP-RATED DEALS 🌶️

HPEC

Aimed at restoring trust and privacy in healthcare, HPEC ensures physicians have control over their data, reinforcing the patient-doctor relationship and enabling easy transition between medical practices.

• Valuation: $21.5 million

• Minimum Investment: $500

Making Fun

Making Fun is a game studio known for the Eternium franchise, one of the top action role-playing games available on phones, tablets, and computers. Eternium boasts 37 million downloads and $20 million in revenue. Making Fun is enhancing Eternium and developing Project Artemis, a new multiplayer RPG.

• Valuation: $13 million

• Minimum Investment: $500

MAXPRO

MAXPRO is a fitness company offering a portable cable gym linked with a digital platform. MAXPRO combines lightweight equipment with digital coaching for an engaging health experience. The company has over 25,000 clients across 56 countries and over $25 million in revenue.

• Valuation: $40 million

• Minimum Investment: $500

“Net Return" refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Regulation A disclosures at masterworks.com/cd.