Hey Seth, I get your disappointment dilution is tough, but it’s worth checking if your agreement includes anti-dilution protection or pro rata rights so you can maintain your stake. Also, ask how the new capital will be used; if marketing drives real growth, the overall valuation might still benefit you long-term. For a deeper dive, this article…

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Interesting question, market cycles definitely impact startup risk profiles. Diversifying can still make sense if you focus on strong fundamentals and long-term horizons. You might find this thread helpful: How to Assess Startup Risk During Market Downturns for more perspective.

It’s a bit like property block management, where careful oversight…

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Great insights! It’s similar in real estate, while markets fluctuate, the focus often shifts toward stable, income-generating assets. Like large-cap dividend stocks, well-managed properties can provide that balance of security and steady returns during uncertain times.

Visit https://propertymanagementcompany.uk/

That’s a good point, share splits can be confusing at first. Definitely worth clarifying with the company whether it’s a true dilution or just a split before assuming it’s a loss. https://crowdwise.org/forums/

I get your frustration, dilution can feel like a setback. Sadly, it’s pretty common with startups. The hope is that the extra funding fuels growth and boosts long-term value.

Also, I doubt this is the case here, but it is possible that the company did a share split. We’ve seen quite a few crowdfunded companies do share splits before going public.

So, for example – if they did a 2-for-1 split, the new “$2.50/share” price might actually be equivalent for your own holdings, since in that situation you would now own…

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Hi Seth,

In terms of “if there is anything you can do” – the likely answer is no. If you were a major investor early on and had substantial voting power or a direct line of communication with the founder, maybe. But especially when investing more passively on Reg CF, Reg A platforms (or through Reg D syndicate), you’re a bit at the mercy of…

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hi i invested in a startup a year ago, when i initially invested in the startup it was around $5 per share, the company is finally made some progress and is trying to get paid customers but needs more marketing costs. they will be issuing around 6% more shares but also will be reducing per share value to half $2.5. as an initial investor im…

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Cool, I’d love to see an updated analysis

Hi Felix – thanks for providing some updates. I added a “2023 Updates” section to the top of this article.

The Form C filing disclosed with the current and February 2023 Note Reg CF offerings are extremely interesting (albeit, quite long at 189 pages!). I might do an updated analysis based on the portfolio company progress (Reg CF and Reg D)…

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What do y’all think of the Republic Note (https://republic.com/note-2023)? Here is the CrowdWise video on it two years ago: Now they’re selling them at $0.36 per note and Republic has two more years of history we can look at. The old Republic portfolio link is outdated, the list can be found…

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Hi Mati!

Thanks for the kind words and for pointing that out.

I probably should remove the “Coming Soon” at this point. A little historical perspective: shortly after creating all these courses and some other tools, Crowdwise (and me personally) became a part of KingsCrowd.

We do have plans to integrate, update courses, and add new course content…

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The last video I could find is 315 (https://www.youtube.com/watch?v=qmcrr4MPgpM&list=PLKZ7HAgsRjaJtek9lSU3bMZuymv4K_gVU&index=4). It’s from 2019. Crowdwise marks some other videos as “COMING SOON”. Will module 2 and 3 ever be published? I couldn’t find them, but would love to watch them 🙂

Great!

You also might have already seen this, and while the stats are a bit dated (from 2020), the overall takeaways in terms of due diligence, check size, etc. are still true today:

http://crowdwise.org/funding-portals/top-10-equity-crowdfunding-sites-2020/

You can get the latest fundraising stats from KingsCrowd, either researching the…

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One of your startups raised a new funding round – congrats! Now they are giving you the option to convert your SAFE into stock (Common or Preferred). The question is – should you convert your SAFE into stock?

First, whether or not you even have the option (and won’t be required to convert) depends on your SAFE. Some SAFEs and Convertible…

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Recently, one of my earliest (and first ever crowdfunding!) investments from 2018 went public on the NASDAQ – Atlis Motor Vehicles (ticker: AMV).

This is my second or third IPO (this one technically went public through a Reg A Direct Public Offering, so not by filing an S-1 and having a traditional “IPO”) – and the process has not been smooth…

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Thanks and no problem. I am actually a founder so was looking for insight when I posted this in choosing a portal.

One question I got recently is whether “SAFE and Convertible Discount Rates as Important as Valuation Caps”?

And are high discount rates a negative signal for investors (think about sales of 50% off assets sometimes indicating something about the items being sold, perhaps being of a lower quality or needing to be offloaded).

Here’s how I’d look…

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Sorry I completely missed this post!

We cover some of the differences in detail in various funding portal articles and these reviews here:

Funding Portal Reviews

It’s important to understand that there is a base-level of due diligence that all funding portals must do according to Regulation Crowdfunding (bad…

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I’ve anecdotally heard from many startup investors that the private markets will tend to lag the public markets a bit. So as public market valuations drop, so too (eventually) will the private markets.

If you look at some of the most successful startups of the past decade (Uber, Square, Stripe, Airbnb, Dropbox, many many more), many of them…

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Here is an article we wrote on this question in 2018:

http://crowdwise.org/data-analysis/equity-crowdfunding-returns/

Unfortunately, the industry is still quite young, especially for assets like startups that typically take 5-10+ years on average to have successful exits.

Curious to hear if you have any other resources you have come across!

Does there exist any data on the performance of Equity Crowdfunding Investments compared to other measures of success or failure? Say the S&P500 index?

The purpose of investing is to eventually own something of greater value when you started. And to be able to sell it at that greater value?

How has that been working out, on average, for…

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The public markets are currently unstable and dropping.

There is no irrational exuberance to buy into.

So is now a good time to diversify into startups? The rule of thumb is to shift into large capital high dividend stocks at this time in the cycle. They are sort of the antithesis of startups.

And if we are headed into hard times, it would…

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