For those who are interested Birchal has published its latest Funded report, which provides a summary of the Crowd Sourced Funding industry for FY23 and where Birchal sits within that sector.
Some points below:
Overall deal value and count was down on the previous year, but looks to be increasing as we head into FY24
And a breakdown of the annual revenues for the companies that have elected to carry out a crowd sourced funding raise.
What is also interesting as highlighted in an article by Birchal on SmartCompany the number of CSF raises exceeded ASX IPOs in FY22-23, and financially make more sense for micro cap companies looking to raise only a small amount of funds. (This however doesn't provide an exit opportunity, or additional institutional investors). This may mean that more early stage companies consider CSF to further develop the business before going down the IPO path.
That being said, out of the 13 business I have "invested" in on the Birchal platform since 2020 I haven't had an exit opportunity. (LINE Hydrogen in September may be the first). But I do now have 1 company that is no longer with us and 2 more that appear to be in a precarious financial position.
Has anyone on here been involved with angel investing? More specifically crowd sourced funding?
It was something I came across in my studies last year. I ended up making a Birchal account just to monitor what kind of offers come across the platform, have not seen anything worth jumping at so far. Just wanted to gauge and see if a member on here has had success with it before?
Obviously it is extremely risky, as you have effectively no liquidity, and with the size of these businesses, most are likely to stagnate and/or go bust. But I think if the right opportunity comes across it may be worth it.