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45 Crowdfunding Deals Rated by Stratifund

Stratifund aggregates and rates Title III (Regulation CF) and Title IV (Regulation A+) crowdfunding offerings, pulling from 9 different funding portals and broker-dealer platforms. Under Titles III and IV of the JOBS Act of 2012, all investors, including accredited and non-accredited, may invest in startups and growing small businesses. Annual investment limits are based on individual investors’ income and net worth.

Stratifund currently lists 44 Title III offerings and rates 39 of them; and it lists and rates 6 Title IV offerings.

SeedInvest and Wefunder are among the portals with the most Title III offerings and highest-rated deals on average.

Most of the rated offerings involve equity, including common and preferred stock, simple agreement for future equity (SAFE), and convertible debt. A handful of offerings involve straight debt.

Stratifund uses a proprietary algorithm to rate both Title III and IV offerings, and publishes in-depth reports on each one. Even if we believe that Stratifund’s rating system is reliable, it’s too soon to draw statistically significant conclusions about the overall quality of Title III deals, which launched only six weeks ago. But I find the ratings intriguing, and I intend to do this kind of informal analysis regularly. Following is my latest crunch of Stratifund’s ratings.

Stratifund Ratings by Portal

On June 29, Stratifund revealed seven Title III offerings that were “the most viewed equity crowdfunding deals” (even though two of those deals are straight debt) during the month ending June 28.*

  • Six of the seven most-viewed deals originated on Wefunder: Slingfin, QMedic, Shape Scale, Cleveland Whiskey, Rocketbook, and Hops and Grains. The other one originated on NextSeed (debt only): The Native.
  • Six of the seven deals featured minimum investment amounts of $100, and the other one (Rocketbook) was $250.
  • Three deals featured SAFE securities, two straight debt, and two common stock.

I’d be cautious about drawing conclusions from a data set this small and limited. Only if we track these ratings by portal over a period of months can we confirm whether certain portals consistently have highly rated offerings.

* “Most viewed” means the most unique page views on Stratifund’s deal pages, according to co-CEO Alex Thaler. Note that being the most viewed deal does not necessarily mean being the best deal or even a good deal. You must review each deal thoroughly to determine whether it might fit your investment criteria.

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About David M. Freedman

David M. Freedman has worked as a financial and legal journalist since 1978. He has served on the editorial staffs of business, trade and professional journals, most recently as senior editor of The Value Examiner (National Association of Certified Valuators and Analysts). He is coauthor of Equity Crowdfunding for Investors, published in June 2015 by…

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