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  • Equity Crowdfunding's Big 2024 🔥

Equity Crowdfunding's Big 2024 🔥

Plus, Uber's delivery acquisition.

December 26, 2024

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Today is Thursday, December 26, 2024.

The Early Bird Index today is 83.50

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Equity Crowdfunding's Big 2024 🔥

The equity crowdfunding space had another big year in 2024. Investors should consider several important lessons for 2025.

Definition: Equity crowdfunding allows everyday investors to back startups and smaller businesses looking to raise capital. Investors receive equity and/or debt in exchange for the funds.

Details: According to the platform Kingscrowd, the total valuation of startups raising capital through equity crowdfunding jumped from around $13 billion in 2023 to about $21 billion in 2024.

  • Nearly half of all equity crowdfunding raises since 2023 occurred on the Wefunder and StartEngine platforms.

Early Bird’s Nest Egg Gains: Equity crowdfunding experienced significant growth and success in 2024 due to several key factors.

  • Integrating blockchain technology, AI-driven decision-making, and mobile applications improved transparency, security, and user experience on these platforms.

  • More companies, including larger ones, began utilizing equity crowdfunding as an alternative funding source.

  • There was also an increase in investor participation in 2024.

Final Thoughts: While equity crowdfunding can be a great way for investors to open their portfolios to companies outside the public markets, investors should know that investing in startups can be risky. Some startups survive, but others close down. This was the case for 2024.

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Notables

Notable Earnings Today: N/A.

Notable IPOs Today: Power Solutions International, Inc. Common Stock (Nasdaq: PSIX).

Notable Equity Crowdfunding Campaigns Ending Today: Lokal Spot Events (Honeycomb), TRUSS Brewing Company (Honeycomb), BlazeBite (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Uber's Delivery Acquisition

On Wednesday, regulators in Taiwan blocked Uber’s (NYSE: UBER) $950 million acquisition of the Taiwan unit of Foodpanda from Delivery Hero due to competition concerns.

Background: Uber announced that it acquired the food delivery unit in May.

Final Thoughts: This is another setback for Uber. The stock is only up 5.70% this year. It is down 15.95% in the last 30 days.

The price of the cryptocurrency Chainlink decreased by about 4% on Wednesday as most major digital asset prices remained stable.

Details: There have been rumors of potential suspicious activities in recent days with large investors buying Chainlink.

Final Thoughts: Chainlink’s price is up 54% this year, with most gains occurring in the last month.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.