September online startup investing, by the numbers
A summary of the movement across Reg CF, RegA and Debt last month
CHART OF THE WEEK 📈
As the summer ends, investors seem to be more active. Investors put $54 million in online deals this month, a great increase from last month’s $32 million invested online.
This increase happened despite only having 127 new equity deals in September versus 116 last month.
KingsCrowd’s data shows that most funding happens in the first 14 days of a deal. Therefore, the higher amount of funds invested online isn’t due to a considerable amount of new deals.
FUND OPPORTUNITY 💰
OPEN is an indexing and fund management company backed by the New York Stock Exchange. They are creating best-in-class private market indices and associated fund products to replicate them.
OPEN’s first fund, the OPEN Unicorn Index Fund (UIF), LP, aims to capture the space's current price dislocation opportunity. The UIF is a secondaries fund that tracks OPEN’s overlying index of the 50 largest venture capital-backed US private companies, including names like SpaceX, Stripe, Fanatics, etc., in a single, diversified basket.
Recent price dislocation in the secondaries market for these unicorns (48.5% on average across the Index) has presented a timely investment opportunity.
More recently, IPOs of previous OPEN Unicorn Index constituents, Instacart and Klaviyo, show early signs of IPO market recovery heading into 2024.
Invest in the future of innovation with the Unicorn Index Fund.
PITCH REVIEW 💸
Brief: Pinwheel offers a thoughtful solution to the challenges posed by children's and teens' smartphone access, delivering devices with an operating system tailored for younger users. This system empowers parents to manage contacts, configure phones remotely, and monitor the device's location. Available on Pinwheel's site and Amazon, these phones are designed to foster healthy development and provide parents with peace of mind. It’s currently raising $1,235,000 at a valuation of $26M with a minimum investment of $100.
Key People: CEO Dane Witbeck (previously founded Meshify, an IoT company acquired in 2016 by a German Fortune 500 corporation, MunichRE), CMO Leslie Tyler (over a decade of experience in marketing and sales)
Not an Edge Member yet? Unlock the Ratings 🔓📈
Here's what we like: Pinwheel has positioned itself as a leader in the market for smartphone operating systems tailored specifically for kids and teens. The company's technology focuses on supporting the growth and well-being of young users, offering features that foster tech-savviness and emotional health. With more than $11 million in total revenue, Pinwheel has demonstrated its ability to attract a substantial user base.
Pinwheel's growth potential is significant, given the widespread adoption of smartphones among children and the increasing concern for their digital well-being. By providing parents with remote configuration capabilities, GPS monitoring, and contact management features, Pinwheel addresses parents' concerns and offers peace of mind. Based on recurring subscriptions and transactional hardware sales, the company's revenue model provides a diversified income stream.
The capital raised in prior rounds and the current crowdfunding campaign will support Pinwheel's strategic initiatives, including marketing efforts, product improvements, distribution partnerships, and research and development projects. With a valuation of $26 million and notable investors such as Central Texas Angel Network, Circadian Ventures, and Drumbeat Ventures, Pinwheel has attracted attention and support from the investment community but remains reasonably valued.
Here's what we don't: Pinwheel has a few direct competitors, including Bark, which has a similar established product at a comparable price. Pinwheel also operates at a net loss and carries $1.9 million in long-term debt.
There are a few risks tied to the market. For example, as tech censorship solutions become more sophisticated, those intent on circumventing them, such as tech-savvy children, may also become more adept at bypassing censorship measures, creating a constant cat-and-mouse game. There are also ethical questions surrounding how much children should be censored online. Striking the right balance between protection and freedom of expression can be challenging. The digital landscape constantly evolves with new platforms, apps, and communication methods. Keeping up with these changes and adapting censorship solutions can be difficult.
While the company's product offering and solution appear promising, investors should carefully consider the company's financials and market risks before making any investment decisions.
Would you invest in Pinwheel?
ON THE POD 🎙️
Chris Lustrino hosts Michael Friedman, CEO of Moneyline Sports, exploring the innovations and intricacies of sports betting. Michael shares how Moneyline Sports is reshaping the sports betting landscape, serving as a beacon for novices and experienced bettors. They also dive into the company's unique offerings, challenges, milestones, and future aspirations.
Listen to the full episode here
TOP-RATED DEALS 🌶️
Achieve Clinics offers leukapheresis free, allowing patients to bank their immune cells for cell therapy even before undergoing chemotherapy. The company has signed LOIs reflecting ~$1m+ in immediate demand.
Valuation: $5 million
Minimum Investment: $100
Avenida Entertainment Group is launching A+, a dedicated English-language streaming service for US Latinos. Avenida aspires to bridge the representation gap by developing a unified platform where Latino filmmakers can crowdfund, co-produce, and directly stream their projects to Latino audiences, boasting nearly a 90% success rate and over $1 million raised across 74 projects.
Valuation: $9 million
Minimum Investment: $100
Plei offers on-demand soccer via an app that allows anyone to join a game in their city. The app handles all the logistics of the game, ensuring every match is an exciting experience. Plei has generated $4.5M in revenue this year, having 180,000+ soccer players on the Plei App and hosting 40,000+ games on the Plei App as of August.
Valuation: $20 million
Minimum Investment: $150