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433 Investors Became Multi-Millionaires From Equity Crowdfunding Last Month
$4.8 million -> $1.697 Billion
Caleb Naysmith
September 04, 2024
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This might be one of the biggest stories to come out of equity crowdfunding. It’s the kind of thing everyone tells you will happen when investing in equity crowdfunding, but it hasn’t actually happened… until now. 433 everyday investors just turned an average investment of $2300 into $2.5 million, making a wave of everyday investors into multi-millionaires.
Crypto is still alive and kicking, according to a recent prediction and report released by VanEck. The research firm predicts Bitcoin’s price could reach as high as $52 million in a ‘best case’ scenario by 2050.
Virtuix is one of the most popular names in equity crowdfunding. The Mark Cuban-backed company has cleared $20 million raised from thousands of investors. According to a recent update, the company now has an official launch date, with $7 million in purchases already lined up. Just another huge innovation funded into creation by everyday investors:
All these stories and more can be read on Media.Hubtas.Com
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Quant Score Deep Dive: Our Bond
Our Bond, founded in 2017 and based in New York, is currently conducting its first equity crowdfunding raise on the Wefunder platform. The company is aiming to raise a maximum of $5,000,000, with a price per share set at $1. The offering launched on June 28, 2024, and is set to close on April 30, 2025. Our Bond is valued at $70,000,000 and has a minimum investment requirement of $200. The company is venture capital-backed.
The company is looking to become the ‘Uber for security’ and making a big bet that companies will feel safer with private solutions over 911.
Financials with Analysis:
Revenue and Profitability: Our Bond reported a most recent revenue of $7,192,000, with a year-over-year change of 414%. The company is currently operating at a net profit of $4,077,000.
Cash Position: The company has a cash balance of $1,437,000, with a year-over-year change of -300k. The cash per employee ratio is $21,132.35 but the company is profitable, so they have unlimited runway.
Debt and Assets: Our Bond has total assets of $5,819,000 and total debts of $18,354,000, resulting in a debt-to-asset ratio of 3.15 and a debt-to-equity ratio of -1.46422. The current ratio is 0, suggesting potential difficulties in meeting short-term obligations.
Efficiency Ratios: The return on assets ratio is 70.06, and the revenue per employee ratio is $105,764.71.
Bull Case:
Strong Founder Ownership: With founders owning at least 59% of the company, there is a strong alignment of interests between the management and investors, potentially driving long-term value creation.
Significant Market Opportunity: Our Bond operates in a market with substantial growth potential, and its current valuation of $70,000,000 reflects the company's potential to capture a significant market share.
Experienced Leadership: The CEO, Doron Kempel, has a track record of past exits, which could provide valuable experience in navigating the company's growth trajectory.
Potential for Improvement: Despite the current financial challenges, there is room for improvement in profitability and cash flow management, which could enhance the company's financial position.
Bear Case:
Negative Revenue Growth: The company has experienced a significant decline in revenue, with a year-over-year change of -120%, raising concerns about its ability to sustain growth.
High Debt Levels: With a debt-to-asset ratio of 3.15 and a debt-to-equity ratio of -1.46422, the company faces substantial financial leverage, which could impact its financial stability.
Liquidity Challenges: The company's cash balance has decreased by 84% year-over-year, and the estimated monthly cash runway is negative, indicating potential liquidity issues.
Key Man Risk: The company has identified a significant key man risk, which could impact its operations and strategic direction if not adequately addressed.
Our Bond presents a mixed investment opportunity with strong founder ownership, massive growth, profitability and market potential. But the company faces challenges related to debt levels, and liquidity. Potential investors should carefully consider these factors and conduct further due diligence before making an investment decision.