Now that crowdfunding has become an international institution, folks are starting to focus on results from crowdfunded companies. Is crowdfunding a worthwhile investment or a waste?
AltFi issued their first annual report noting that “to date, just 88 of those 955 raises have ended in failure, while 5 have delivered exits” with an 8.55% return. And the pace of deals (at least in the UK) has slowed with more companies showing problems sooner than their earlier funded cohorts.
While AltFi grades companies using traffic light symbology, the Securities and Exchange Commission wants crowdfunded companies to file and post annual reports on their websites that provide the same information as was in their offering documents.