Are crowdfunded businesses overvalued?
Uncover the truth behind early-stage equity funding: A flip book
What is crowdfunding?
In today’s dynamic business landscape, the choice of funding strategy is a critical decision for high-growth businesses seeking equity financing to fuel their expansion. One source of funding which has become an increasingly popular and lucrative option for early-stage businesses is crowdfunding.
Crowdfunding is typically formed by equity subscriptions comprised of small amounts of capital from a number of individuals (“the crowd”) who together provide a business with the funding needed to grow. This is an alternative to friends and family and angel groups, and typically comes in a business’ life before professional equity investors such as private equity (PE) or venture capital (VC), or lenders.
Price Bailey have led this research project to inspect the current crowdfunding market, the stages of crowdfunding, and pre- and post-crowd valuations. This resource supports entrepreneurs and decision-makers by providing valuable insights to make informed choices tailored to their unique circumstances.
What to expect within the crowdfunding report?
This flip book covers three key areas:
- An examination of how investment rounds unfold for businesses pursuing crowdfunding as opposed to those engaging with professional investors.
- An exploration of the determinant factors influencing funding success for individual businesses.
- A post-funding assessment of the trajectories of businesses that embraced crowdfunding in comparison to those that followed PE/VC routes.
Audio Guide
As well as our flip book, Francesca Thomas, Marketing Manager, interviews Chand Chudasama, Partner in the Corporate Finance team, and Sîoned Davies, Market Research and Data Analysis Executive, to provide a deeper understanding into the inner works of crowdfunding. As the curators of this resource, the team’s conversation highlights the multifaceted aspects of crowdfunding and unpicks exactly what you should know from both financial and market analysis perspectives.
If you should have any questions regarding the content within these resources or would like to discuss crowdfunding with one of our experts, please use the form below to contact one of our team.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
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