The Benefits of Equity Crowdfunding for Investors Are Manifested in the Long Term

The crowd-investing portal CrowdFundMe has shared the data of some of the companies financed on the platform 6-7 years after its equity crowdfunding round.

The aim is to demonstrate that alternative venture capital investments are, in most cases, long-term investments, and those who know how to wait for the right timing can benefit from significant returns.

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A few successful equity crowdfunding campaigns

My Cooking Box represents a concrete case of success: the company, which markets boxes with all the ingredients to prepare Italian recipes, recorded a revaluation of x19 compared to the post-money of 2016, reaching the current value of €18,907. 705.

A similar argument can be made for Winelivery, which has gone from being a small startup to becoming a leader in the home delivery of drinks, whose value has increased up to € 24,473,147, marking a multiplier of  x18 on the post-money from the 2017 crowdfunding campaign.

Equity Crowdfunding, always in the long term, can lead to important Exits, which can take place in different ways. For example through the listing on the Stock Exchange :

• CleanBnB, a company specializing in short-term rentals: the shares of investors have grown with a multiplier of x 14.18 (IPO 2019 compared to 2016)
• CrowdFundMe: Investor shares grew with a multiplier of x 3.6 ( IPO 2019 vs. 2017)
• Glass to Power, the transparent photovoltaic panel: investors’ shares have grown with a multiplier of x 7.68 (IPO 2022 compared to 2017)

Additionally, the selection of companies disclosed by CrowdFundMe also features Exit via Acquisition:

Bloovery: the digital platform for the sale of flowers and plants has been acquired by Colvin, a group focused on technologies for the floriculture industry, with a revaluation of shareholder shares equal to x1.17 compared  to 2017

Talkway (Alea): as explained by Corriere della Sera, in 2021  Leonardo “signed an agreement for the acquisition of 70% of the capital of Alea, a company specializing in mission and business-critical communication software, with an option for a subsequent acquisition of the 30% of residual capital.” Investor shares thus increased with a multiplier of  x1.50  compared to 2017.

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(Featured image by  stevepb via Pixabay)

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