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.
CHART OF THE WEEK 📈
KingsCrowd’s Top Deal and Deal to Watch designations highlighted the best and most promising deals on equity crowdfunding platforms. As we move towards writing reports for most raises, and therefore away from these specific designations, we look at the platforms which generated the most significant share of exciting deals since 2021.
Republic, Wefunder, and StartEngine clearly appear as the platforms hosting the most promising deals.
Despite significantly fewer deals on its platforms, Republic had more Top Deal and Deal to Watch designations than any other competitors. This substantiates Republic’s selection strategy for its deals.
SeedInvest also had an interesting share of Deals to Watch, even if the company hosted very few deals a year before being acquired by StartEngine.
Microsoft Co-Founder’s $1.5B+ Sale Highlights “Safe Haven” Asset
Last November, Paul Allen’s historic art collection shattered the record for largest-ever sale in auction history.
The fact that the blue-chip art market is still setting records amid major drawdowns in financial markets, and macroeconomic turmoil, highlights why it can be such a strong alternative diversifier. In fact, the high-end art market also remained resilient through downturns like the dot-com bubble and Great Financial Crisis in 2008.
But this time around, it’s not just billionaires benefitting.
Thanks to Masterworks. This award-winning investment platform allows people to invest in shares of multi-million dollar art by names like Banksy and Picasso. So far, all 11 of Masterworks’ sales have been profitable, the last 3 realizing 10.4%, 35%, and 13.9% net returns respectively.
Due to high demand, offerings can sell out in just minutes, but Pitch Reviews readers can now skip the waitlist with this referral link.
PITCH REVIEW 💸
Brief: Aries brings professional investing tools to retail investors in 130 countries. Offering commission-free trades and diverse investments, the platform has grown its client base by 600% in 2022. It’s currently raising $1,235,000 at a valuation of $24.9M with a minimum investment of $496.
Key People: Co-founder and CEO Reda Falih (7+ years in finance), co-founder and COO Pash O'Connor (skilled in web development for financial services)
Not an Edge Member yet? Unlock the Ratings 🔓📈
Here's what we like: Aries has positioned itself as a disruptive force in the online trading and investment platform industry. By offering commission-free trades and access to various types of investments and asset classes, Aries has successfully attracted a growing client base. This rapid growth (600% in 2022) demonstrates the strong demand for the tools and services that Aries provides to ordinary retail investors.
With its global reach, Aries has tapped into a vast addressable market of online trading platforms spanning 130 countries. This gives the company significant growth opportunities as it continues expanding its user base and establishing partnerships in key markets. As Aries continues to scale its operations and attract more users, there is potential for substantial revenue growth.
Aries has achieved high margins, indicating efficient cost management and the potential for strong profitability as it grows. Additionally, the low capital intensity suggests that Aries can achieve its growth objectives without requiring significant additional capital investment.
Overall, Aries has demonstrated strong growth potential and a solid foundation for future success. With its expanding client base and global reach, Aries is well-positioned to capture a significant share of the online trading platform market and deliver value to its investors.
Here's what we don't: Aries operates in an extremely competitive market, with well-established and popular platforms such as Vanguard, Robinhood, and eTrade. In addition, Aries faces direct competition from platforms like Webull and eToro. These competitors have already captured significant market share and have established brand recognition. Aries will need to differentiate itself to attract users away from these established players.
Furthermore, Aries is currently overvalued, with a valuation of $24.96 million. This valuation seems high considering the company's limited revenue of $60,000 and a negative net income of -$97,683. The revenue multiple of 416x is exceptionally high and suggests that the company's valuation is not supported by its current financial performance. Investors should carefully consider whether the potential growth of Aries justifies its current valuation.
Considering the intense competition and high valuation, investors should approach Aries cautiously and carefully evaluate the company's ability to succeed in the highly competitive online trading platform market.
Would you invest in Aries?
TOP-RATED DEALS 🌶️
LUMA Solar produces patented solar rooftop shingle systems designed for beautiful, permanent homes. As the first fully-integrated system in North America, these shingles are also exchangeable and upgradeable.
Valuation: $16 million
Minimum Investment: $1,000
Neurosity has created a non-invasive EEG (electroencephalogram) device, the Neurosity Crown, that promotes mental health by interpreting brain waves and predicting optimal mental states. The Crown uses Neurosity's Shift app to provide brain feedback via headphones.
Valuation: $38 million
Minimum Investment: $100
Unreal Deli produces premium, plant-based deli meats made from whole vegetables and protein-rich grains. Their products are sold in thousands of locations including major chains like Publix, Kroger, and Whole Foods.
Valuation: $19.9 million
Minimum Investment: $340
“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.