KingsCrowd wants to provide the infrastructure for startup investment decision making. This means:

  1. Education: We provide expert editorial content in addition to “how to guides” and tools
  2. Analytics: We offer standardized deal ratings and synthesized data analytics 
  3. Research: We combine in-house market research with crowd sourced research
  4. Recommendations: We provide KingsCrowd “Top Deal” picks and access to expert network due diligence 

Ultimately, KingsCrowd wants to be the one stop hub that people come to learn about equity crowdfunding opportunities, which would also make it a ripe advertisement platform.


Minimum: $100 “Unit in a LLC” @ $1.12/share, Sept 2018



Why investing?

  1. I know the founder. In addition, Chief Content Officer (Sean O’Reilly) and the advisor (John Fanning) both seem very strong.
  2. I am the customer—I invest in crowd equity opportunities. There are four utilities that KingsCrowd is trying to solve:
    1. Education – I did my own education via Jason Calacanis’ Angel, David Rose’s Angel Investing, and Peter Thiel’s Zero to One.
    2. Research – Google, Crunchbase, going on the company’s website.
    3. Analytics – None.
    4. Recommendations – None.
  3. I’ve invested in similar companies (WhereBy.Us, and could share what I’ve seen in the media business model.

What the risks are

  1. There is no market for “Venture Capital due diligence” among amateur investors/non-accredited investors. (litmus test: what percentage of SeedInvest/WeFunder/NetCapital investors are writing deal memos?)
  2. Equity crowdfunding platforms vertically integrate, and can provide education, research, analytics and recommendations all on their platform. Betterment does all this for low-fee index funds, which albeit is much more passive. Auto-invest on SeedInvest does something similar, but I opt out of my own decision.
  3. The returns on this investment is not VC but normal media. Here are the next four competitors:
    1. Crowditz: Crowdfunding deal aggregator
    2. Newchip: Crowdfunding deal aggregator
    3. Early Investing: Occasional deal recommendations
    4. Crowdability: Deal aggregation / research

What has to go right for the startup to return money on investment

  1. Demonstrate conversion to investment. No

Want to read the whole post?

You don't have access to this post on Startup Investing for All by Muhan Zhang at the moment, but if you upgrade your account you'll be able to see the whole thing, including comments, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.