Crowdfunding Raises on the Rise
In 2020, the average crowdfunding goal was more than $2.4 million.
The average funding goal increase for crowdfunding campaigns from 2007 to 2020.
Valuation Increases Have Outpaced Funding Goal Growth
The average funding goal isn’t the only metric to experience double-digit percentage growth, in fact, the average business valuations have exceeded the 22% funding goal benchmark with an increase of 31% across the board between 2007 and 2020.
In 2007, the average pre-money valuation was slightly higher than $4.8 million and although the great recession brought that number closer to $4 million by 2011, the average pre-money valuation in 2020 was more than $7 million.
The Average Company Raising Crowdfunding is 6 Years Old
Crowdfunding is no longer prevailed by pre-product, pre-revenue, or pre-profitability ideas. Established businesses are taking advantage of the ability to access public market investors while remaining a private company.
- The average company has more than 10 employees.
- The average company raising crowdfunding has been in business longer than 6 years.
- The youngest companies are typically in the media and entertainment industry.
- The oldest companies on average are in the electronics and instrumentation industry.
This makes sense because electronics and instrumentation is capital and time intensive. Somewhat surprisingly, however, the average software company was above the overall average age clocking in at nearly 6 ½ years old.
If you want even more insights from EquityNet’s crowdfunding statistics, we’ve compiled an infographic about the state of crowdfunding below: