When a company crowdfunds a second time, what happens to its valuation?
We followed 713 companies that went back to the crowd for at least two priced rounds and tracked each one's valuation across its own journey.
79% came back at a higher valuation. The median company grew from a $10M cap to a $19.8M cap, a 1.54x step up, in a median of just 15 months. The top decile exceeded 5.9x.
Add it up and the roughly $970M invested in those earlier rounds now marks to $2.64B at latest-round prices. That is $1.67B of unrealized paper markup sitting with early investors.
One honest caveat: this is paper, not proceeds. These are primary-round prices, not exits, and early investors get diluted along the way. But the direction is unmistakable. The crowd is pricing these companies up.
A question for the room: when a company comes back and prices at double its first cap, is that real value creation or optimistic pricing? Curious where people land.
Comment "CCLEAR" and I'll send you the full brief.
Register for FREE to comment or continue reading this article. Already registered? Login here.
2
