EquityNet has published a report regarding accredited investors in the United States. The report is derived from the Equity Net user base of over 1000 businesses. The entire report is embedded below but there are several interesting points which preview the impending commencement of equity crowdfunding for non accredited investors:
- Over 50% of businesses using equity crowdfunding are for less than $500,000
- 40% of Valuations pre-money are under $1,000,000
- A Majority of businesses predict a liquidity event via acquisition, management buy out or merger
- 70% of businesses seeking equity had no revenue in the previous year
- Only 15% of businesses are profitable at the time of fundraising
Equity Crowdfunding – EquityNet.com