Real estate tops the capital crowdfunding charts: Crowdnetic report
Leading crowdfunding and peer lending data aggregation service Crowdnetic has released their February report, which contains some interesting tidbits.
Women play a significant leadership role in 18.3% of all Private Issuers Publicly Raising (PIPR). They are more likely to be in Consumer Goods (22.9%), Services (21.9%), and Healthcare (21.4%), and less likely to be in Technology (13.0%), Materials (12.5%), and Energy (7.3%). They have relatively average representation in Financials (17.6%) and Commerce and Industry (16.2%).
Women-led companies attracted $29.4 million (25.2%) of all capital. Consumer Goods (48.9%), Financial (35.8%), and Healthcare (32.1%) companies saw greater than average sums while Services (20.6%), Commerce and Industry (5.4%), Energy (0.0%), and Materials (0.0%) were below average. Technology (24.5%) was relatively average. The authors were quick to mention that some industries naturally attract higher or lower percentages, meaning it would be erroneous to attribute one sector’s reading to only the gender of its leadership.
While women-led companies garnered $29.4 million during the five-month period covered by the report, women-owned businesses received $20.3 million. The difference comes almost entirely from the Financial sector, which had $7 million less supporting women-owned businesses as compared to women-led ones. The other sectors exhibit a relatively equal split.
The three top PIPR sectors overall are also the top three most likely to have significant female leadership. Thirty-five PIPR’s in E-Commerce, 25 in Social Media, and 20 in Education K-12 have some female leadership. The percentage of women leading E-Commerce (25.9%) and Education K-12 (23.0%) is greater than the overall percentage. Online & Mobile Gaming (8/16.3%), Social Media (25/13.9%) and App Software (12/14.3%) all had percentages lower than the overall average. General Consumer Services (8), Travel & Tourism (8), Specialty Eateries (9), Specialty Retail – Other (12) and Clothing (13) are exclusively women-led companies.
The number of PIPR’s increased by 12.6% but the amount of committing capital soared by 45.4%, meaning more capital is being committed by more people, a sign of the practice’s increasing mainstream acceptance overall.
Services received 37% of all capital, followed by Technology at 25% and Financial at 20%. Even though only five percent of PIPR companies are from the Financials sector, the fact they attract four times the actual capital compared to their representation says that when they go looking for capital they find it and then some. Their average amount generated was nearly $1.2 million for the 20 companies in the sector, more than four times the average amount attracted by 157 Service PIPR’s, 135 of which were E-Commerce companies.
Real Estate was the top individual industry for recorded capital commitments. Three companies brought in $17 million, nearly triple the aggregate amount garnered by any other industry.
Trying to figure out where to set up shop? California is the place you ought to be, so load up the truck and move to San Francisco/Silicon Valley. The numbers there dwarf any other city – 358 companies attracted $35 million. Los Angeles comes in second with 226 companies generating $12.4 million. New York (247/$6.5 million) gets the bronze while Chicago is in fourth (85/$2.4 million) and Dallas (36/$1.6 million) rounds out the top five, finishes Cubs and Cowboys fans should get used to.