Explore how impact investing equity and debt deals fare against the broader crowdfunding market since May 2022, with insights on median and average funding amounts, and investor preferences.
Reposted from KingsCrowd. Written by Léa Bouhelier-Gautreau.
This week, we compare the median and average amounts invested in impact investing equity and debt deals with the amounts invested in all crowdfunding deals. Our data encompasses every Reg CF and Reg A deals since May 2022.
- For equity deals, the median amount raised by impact deals is higher than that of any deals. This means that investors tend to invest more in impact investing deals.
- However, the average amount invested in impact investing deals is smaller than that in most deals. This is because only four impact deals reached $5 million in funding. This is a small portion of the 20 deals that reached $5 million or more in funding. Five of these deals received $10 million to $50 million in funding.
- Overall, impact investing deals tend to raise more funding than other deals, but impact investing deals struggle to raise exceptionally high amounts of funding, meaning $5 million or more.
- Interestingly, investors seeing an impact investing deal with at least $167,028 in funding will know that this deal receives more funding than 50% of other deals.
- The higher median funding of impact investing deals compared to other deals reflects investors’ confidence and interest in impact startups. Investors tend to invest in clean energy and transportation deals particularly.
- The lower average funding of impact investing deals compared to other deals shows that impact startups have more difficulty leveraging impressive investment amounts from the crowd than other deals.
- For debt deals, investors tend to invest more in impact investing deals than in any other deals.
- The numbers demonstrate investor’s confidence that impactful businesses will be able to generate cash flows to repay their debt.
- Investors also tend to back innovative ideas that surf on customers’ increasing interest for sustainable and inclusive products and services.