- March 5, 2020
- Posted by: Ajene Watson
- Category: Coffee Talk
Anticipated Valuation Report to Reflect A Possible Jump In Value
Back in February 2019, we reported that our equity portfolio value increased in excess of an estimated 15x, following a series of successful investments into TruCrowd, Inc. (“truCrowd”).
Since DigitalAMN’s initial investment in truCrowd, the platform has seen tremendous growth in its user base – at a rate estimated to be roughly 60% year-over-year (YoY). Userbase plays a significant role in a platform’s value. This type of increase, in such a short period of time, is quite substantial for a smaller crowdfunding platform competing with the likes of StartEngine, WeFunder and SeedInvest.
Nonetheless, truCrowd was rated one of the market’s Top-10 equity crowdfunding platform operators in 2018, and just recently gained entry in StartEngine’s market report, Equity Crowdfunding Q4 2019 Review; finding its place in their Top-10. Couple this with the fact that when an industry leading funding portal needed to raise a quick round of capital using Regulation CF, they turned to truCrowd – not once, but twice; and possibly a third time.
It’s been 3 years since DigitalAMN began making investments into equity crowdfunding in support of the JOBS Act. We firmly believe that there can be no social justice without economic justice. We argue that economic justice begins with education and financial literacy – which can be partly encouraged by giving everyday people the ability to financially participate in investment opportunities traditionally reserved for the rich – like music royalty sharing app, Vezt, Inc.
Furthermore, from a business perspective, by aligning ourselves with a securities funding portal, we afforded DigitalAMN to operate the front-end of the PAI’s accelerator business model more efficiently. This means, we would be able to fund and develop more companies and operate at a more competitive level than the average accelerator, incubator, business management consultancy firm or typical equity crowdfunding platform. Most importantly, based upon comparable valuation metrics, truCrowd is estimated to have increased roughly 3000% in its overall enterprise value from the point in time where DigitalAMN made it’s initial investments into Fundanna and truCrowd – when the platform became part of DigitalAMN’s equity portfolio.
We continue to believe that the value of truCrowd as a securities crowdfunding portal operator should continue on an upward trajectory, as crowd supported securities financings [i.e. Reg. CF and Reg. A+] grow in national popularity. Therefore, we’re really excited to undertake an updated valuation report to check the current enterprise value for truCrowd, as part of DigitalAMN’s equity portfolio. We believe that the valuation of truCrowd alone, of which we currently hold a 19.9% interest, will continue to support the thesis that DigitalAMN may be significantly undervalued.
We will announce the results of a new valuation report of truCrowd when the data becomes available. In the meantime, DigitalAMN will continue to make crowdfunding an essential part of it’s PAI ecosystem and accelerator business model – creating wealth building opportunities for both our equity portfolio and everyday people.