Last quarter, fintech funding rose to $30 billion, the highest on record. $14 billion of SPAC capital is waiting to take these companies public. Robinhood and Circle are about to float on the public markets, via SPAC and IPO. In this analysis, we explore the fundamentals of both companies, as well as the unifying thesis that explains their growth.
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A New York Times article featuring Ryan Feit of SeedInvest identifies some of the high risks involved with equity crowdfund investing; Feit provides some insight on his platform's due diligence process for listing equity crowdfunding campaigns; noted in the chart below, SeedInvest has posted two of the market's top ten investments; according to NextGen, Wefunder has been the source for the equity crowdfunding market's most successful campaigns. Source
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LendIt has partnered with SeedInvest to include live fundraising at this year's PitchIt @ LendIt Europe competition; through the partnership LendIt Europe delegates and SeedInvest's 185,000 users can invest in the eight startup finalists during the event; these finalists will present before an audience and panel of judges on October 10 from 11:00 am to 1:00 pm. Source
While the passage of the JOBS Act in 2012 helped to spur crowdfunding into an exciting industry, questions have continued surrounding investor protections and the legitimacy of companies using this method to raise capital; SeedInvest CEO Ryan Feit recently told the New York Times: "I'm legitimately concerned that a lot of people are going to be losing money; investing in startups is really risky, and it's very different than buying a used couch. We definitely do not think you should treat it like Craigslist."; investors don't necessarily understand the investment and companies are not following the rules fully, causing many in the industry to legitimately worry about the way forward. Source