It seems like every day, another equity crowdfunding project is making headlines for a massive fundraise.
Equity crowdfunding platforms such as WeFunder and StartEngine have empowered a new age of entrepreneurs to raise significant funds in exchange for equity of future profits.
Could your company be next?
In this article, we’re taking you through five equity crowdfunding success stories in several different categories so that you can gather an understanding of the scope this fast-growing industry is reaching.
Let’s get it going!
Zenefits
Platform: WeFunder
Type: HR Software
Raised on WeFunder: $50,000
Zenefits is a perfect example of using an equity crowdfunding site like WeFunder as a launching ground to something much greater.
After raising around 50k on the platform in 2013, the company went on to pull in another $483 million in investments — with much of that funding attributed to early programs made possible by the original $50k.
Today, the company is valued at over $4 billion. That’s huge news for the nine investors who got in on the ground floor through WeFunder, but it’s also great for the company — as their initial seed money came from the community.
They do call themselves “The People Platform,” after all.
Robinhood
Platform: Republic.co
Type: Finance
Raised on Republic.co: $11 million (2 rounds)
Robinhood clearly has a different story as compared to Zenefits, as they already had a well-established name by the time they showed up on the Republic.co platform.
But to pull in not seven, but eight figures through two funding rounds?
That’s gonna turn some heads.
Today, Robinhood is valued at a whopping $11.7B and is mostly owned by major venture capital groups. But it’s important to remember that equity crowdfunding was an important step on the road to the empire!
Knightscope
Platform: StartEngine
Type: Artificial Intelligence
Raised on StartEngine: $21.86M
I wanted to take a look at a company that has seen some major success recently to prove some of the incredible heights these campaigns are reaching.
You read that statistic correctly: Knightscope’s autonomous security robot company raised over $21M in their latest funding round, and that doesn’t even include the more than $43.5M they raised previously with crowdfunding.
The company still has a long way to go until it becomes the goliath that investors are hoping it will be, but it is currently valued at $447M.
And with more and more operations turning to AI learning every day, there’s no reason to think that Knightscope’s growth will be slowed any time soon!
HelloMD
Platform: SeedInvest
Type: Health care
Raised on SeedInvest: $3M+
SeedInvest tends to be a lesser-discussed member of the equity crowdfunding sites out there, but HelloMD is living proof that exciting things are happening across the industry. (Oh, and by the way — Knightscope had an $18M fundraising round on SeedInvest. Needless to say, they get around).
HelloMD is set to build the largest marketplace for cannabis consumers on the planet. And that’s good news for them, considering that the cannabis industry has a revenue forecast of $84B by 2028.
There’s going to be market demand.
HelloMD is staking their claim to a big chunk of it very early in the game.
Will the company be successful and pay out big dividends to those who got in on the ground floor with SeedInvest?
Only time will tell!
Meow Wolf
Platform: WeFunder
Type: Art Collective
Raised on WeFunder: $1.32M
One of my personal favorite equity crowdfunding success stories of all time, Meow Wolf is an art collective that cultivates immersive themed entertainment spaces across the U.S.A.
That’s right, an art collective pulled in millions of dollars on WeFunder. Anything is possible!
Granted, Meow Wolf had a great business plan and deserved every bit of that funding, but it goes to show that it’s not just tech running the show. There is a lot of innovation happening out there, and the investors on equity crowdfunding platforms are willing to respond!
How to Be Your Own Equity Crowdfunding Success Story
Here’s the deal: equity crowdfunding is an opportunity. A chance to grow your business. To call upon the community for funding. To build your dream into reality.
If you’re thinking about running your own equity crowdfunding campaign, a great place to start is by researching successful campaigns that have come before you, such as those listed above.
With that information on hand, you can start to really imagine if equity crowdfunding is a good fit for your business. Let us help you along with some additional articles and videos:
- Kickstarter vs. StartEngine (Video)
- How Equity Crowdfunding Works (Video)
- What is Equity Crowdfunding? (Video)
Also, keep in touch with us. Our passion is education! We promise, we’ll only supply you with the best crowdfunding content on the web:
- Subscribe to the once-weekly newsletter
- Check out the Crowdfunding Demystified Podcast
- Subscribe to the Youtube Channel
- Find the book: Equity Crowdfunding Explained
Cheers to your equity crowdfunding journey! Good luck, and call on CrowdCrux if you need our expert team to bring your campaign to the next level!
