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EarlyIQ Announces U.S. Investment Benchmark Study on $40 Billion Equity Crowdunding Industry

14 Mar

By Robert Hoskins

EarlyIQ, Inc. released the results of a new CrowdfundIQ Benchmark Study, which is the Crowdfunding industry’s first national study on potential US equity Crowdfunding investors. The Crowdfunding research study provides unique and quantifiable insight into the demographics, investment intent, planned investment frequency, and views of likely equity Crowdfunding investors in the United States.

CrowdfundIQ Benchmark Study on $40 Billion Equity Crowdfunding Investors

CrowdfundIQ Benchmark Study on $40 Billion Equity Crowdfunding Investors

Highlights from the study include:

  • Annual market size estimate at maturity likely reaches $20B-40B – similar to angel and venture capital markets.
  • Anticipated investment frequency is 2-3 investments annually, averaging just under $2,000 per investment, for investors with annual household income $75K+.
  • The likely investor profile is middle aged, upper middle income, urban/suburban dwelling and college educated, with almost 70% indicating a high likelihood to invest.
  • 58% of all respondents indicate high interest in early stage equity investments
  • #1 demand by likely investors is transparency by the management team.
  • Government review of issuing companies is not a requirement of likely investors with only 5% requiring.
  • Investment intent rises 4-times when a neutral 3rd party provides review of the management team.

“The most intriguing aspect of the study is the strong appetite for investment and the demand for transparency in the market,” noted Steve Yin, co-founder and CEO of EarlyIQ. “We’re also encouraged by the uniformity of interest across demographics. We believe it speaks to an American desire to support entrepreneurship,” Yin added.

The study was conducted in time sequence throughout 2012, both before and after the passage of the JOBS Act. The nationwide online survey was conducted with a random sample of 480 complete respondents in total with a minimum qualification of an annual income of $25K.

Early IQ, Inc is a San Diego, California based, hosted information and analytics company serving early stage capital markets including the Crowdfunding, peer lending, angel, accredited, private equity, and venture capital.

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