Kingscrowd reposted this
Vice President of Product @Kingscrowd. Former Venture Partner, Founder, Startup Advisor, & recovering Rocket Scientist. Board of Directors @CfPA and @NEFIRST.
🚨 Data deep-dive analysis alert! 🚨 I hear many investors tell me that they feel that debt crowdfunding deals are "lower risk" than equity crowdfunding deals. Personally, I've always wondered if that's the case. When an investor can get 5% right now in risk-free savings accounts, are private credit / debt interest rates in #RegulatedInvestmentCrowdfunding fairly compensating investors for the risks they are taking (failure, illiquidity, etc.)? In this week's chart-of-the-week at KINGSCROWD, I broke down recent trends in debt and revenue-share #RegCF and #RegA offerings since 2022 to estimate if investors are being fairly compensated for the risk they are taking. This week's deep-dive analyzes: -Failure rates of debt/rev-share offering companies to date -Estimated debt interest rates required for investors to break-even due to failures and other risks -How Reg CF debt interest rates have trended over time -How debt interest rate averages vary by funding platform Check out the data deep-dive here 👇 https://lnkd.in/eDGHdBPa #regulationcrowdfunding #investmentcrowdfunding #debtcrowdfunding
Mona DeFrawi
3w
Brilliant and very insightful. As always. Thank you Brian Belley
Hell yeah!!
This is awesome analysis Brian Belley
I may be out of the industry but your posts still keep me "invested" in it ;) Thank you, Brian!
Great research and analysis Brian! 👍
Investment Advisor | Crowd Investor
3wGreat post! I think there's also a distinction between debt and rev share. Curious what story the data will tell.