CrowdRating, a UK platform that rates equity crowdfunding offers, has released a note stating that 96% of the companies whose campaigns received a Gold Investment rating from the platform – and closed at least a year ago – remain in business. In fact, CrowdRating states that these firms are showing “demonstrable progress” with positive signs of life. The company says that only a single company is showing signs of distress.
Since September 2015, CrowdRating has completed more than 1000 ratings on equity crowdfunding campaigns across leading UK platforms. CrowdRating bases their ratings on an analysis of all 384 campaigns that closed more than a year ago. CrowdRating reviewed the latest available information on each of these 384 companies and assessed their relative signs of life, including clear evidence of progress such as financial performance, customer growth, or further investment achieved. The research found that 24 of the 25 companies whose campaigns were awarded GOLD scores for investment were showing evidence of progress.
Alex Heath, co-founder and CEO of CrowdRating stated;
“We launched CrowdRating with the aim of providing crowdfunding investors with an independent, affordable and reliable screening tool to help them make better informed investment decisions. These findings are an important validation of our ratings system and show that CrowdRating has delivered on what it set out to do – that is to provide investors with meaningful, independent analysis of crowdfunding campaigns which informs their wider due diligence and ultimately helps them to identify the best investment opportunities and weed out those that are less likely to succeed. Whilst it is still early days for many of these crowdfunded companies, we believe that those we have ranked GOLD in investment will outperform any index of equity crowdfunded companies in the medium to long term.”
Below are CrowdRatings Top Ten Crowdfunding Campaigns, according to their research:
CrowdRating Top Ten Investment Scores – September 2015 – June 2016
|
Campaign |
Score | Investment | Platform | Campaign Closed | Funding | |
| 1 | Spoonfed | 89% | £585,000 | SyndicateRoom | No** | Link |
| 2 | Racefully | 87% | £275,000 | SyndicateRoom | Yes | Link |
| 3 | SwabTech | 85% | £580,000 | SyndicateRoom | Yes | Link |
| 4 | InYourStride (Compleo Sport) | 81% | £118,160 | Crowdcube | Yes | Link |
| 5 | Storemates | 79% | £79,590 | Seedrs | Yes | Link |
| 6 | SimplyCook | 79% | £717,550 | Crowdcube | Yes | Link |
| 7 | Desuto | 79% | £55,677 | Seedrs | Yes | Link |
| 8 | Empiribox | 78% | £112,530 | Crowdcube | Yes | Link |
| 9 | Witt Energy | 78% | £2,386,030 | Crowdcube | Yes | Link |
| 10 | Value Chain Lab | 77% | £639,000 | SyndicateRoom | Yes | Link |
In comparison, of the 48 companies which were rated BRONZE for investment during the same period, 9 (21%) are already showing evidence of distress such as reduced activity, increased losses, or delayed filings. Seven of those appear to have failed altogether.
In 2016, CrowdRating was included in the Financial Conduct Authority’s fast track authorisation and in February this year also received direct permissions to give Investment Advice via its ratings.
“Our inclusion in the FCA fast-track process and the grant of our direct permissions underlines how important it is for investors in this still nascent market to be able to access the kind of independent investment advice that CrowdRating provides,” said Modwenna Rees-Mogg, co-founder of CrowdRating.