A February Pullback: Crowdfunding Slows After a Strong January

CHART OF THE WEEK 📈

By Chris Martin | Read

Investment crowdfunding saw a notable decline in February 2025, as total capital raised fell from $33.97 million in January to $26.00 million in February, a 23% month-over-month decrease. While platforms such as StartEngine and Wefunder remained dominant, the overall contraction raises questions about investor sentiment heading into the second quarter. Whether this pullback was seasonal or indicative of a larger trend remains to be seen, but the numbers suggest a recalibration after a strong start to the year.

The data have various lessons that both founders and investors can learn.

Want the full story and takeaways? To view the complete analysis, as well the interactive chart and complete data, read the full article for free on Kingscrowd HERE.

INVESTMENT ROUNDTABLE

By Sam Fiske / Watch

The SEC just ruled that meme coins are NOT securities—but what does that really mean for investors? Does this open the floodgates for more crypto scams, or does it provide much-needed clarity for real investments? 🤔

We break it all down in this week’s Investment Roundtable, plus:

📊Crowdfunding Insight – Does "Testing the Waters" actually predict investor follow-through?
📈 Wefunder vs. StartEngine – Which platform converts more investor reservations?

INVEST IN KINGSCROWD

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Our raise is live on StartEngine, and we’d love for you to check out the details of our offering.

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✅ The first comprehensive ratings & analytics platform for startup investing
✅ A proven track record of helping investors navigate the private markets
✅ Positioned for growth as the equity crowdfunding industry expands

Becoming a shareholder means joining us in shaping the future of startup investing.

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Nestment is revolutionizing homeownership by enabling first-time buyers to purchase homes through group buying with friends and family. The platform simplifies financing, legal agreements, and financial planning, making homeownership more accessible. Raising funds on Wefunder with a $20 million valuation cap, Nestment plans to use proceeds for marketing, engineering, and its NestGen homebuying accelerator. With growing traction and investor confidence, the company aims to disrupt traditional mortgage financing and redefine how people buy homes.

Key People: Nestment is led by CEO Niles Lichtenstein, a three-time startup founder with experience at Harvard, Ogilvy, and Deutsche Bank, whose strategic vision drives the company’s growth. COO Mark DeMitchell, with expertise in data strategy from TBWA/Chiat/Day, enhances operational efficiency and user experience. CTO Rob Zimmerman, formerly at Tesla, ensures the platform’s scalability and security. Chief Product Officer Jonathan Chu, with a background in successful startups like Flipagram, and Head of Marketing Elena Tortora, experienced in go-to-market strategies at Hilton and Honda Racing, strengthen product innovation and customer acquisition. Their combined expertise positions Nestment for scalable growth in the proptech space.

Here's what we like: Nestment’s current outlook is positive due to strong early user growth and robust market indicators. The company claimed to have generated $1 million dollars in 2024, a quick jump from $12k in 2023.  Moreover, market research estimates that the alternative homeownership space could capture a segment of the U.S. real estate software market, valued at approximately $3.6 billion dollars and growing at more than 10% annually, which suggests significant room for expansion if co-buying becomes a mainstream option.

The platform’s integrated blend of financial analytics and personalized advisory support is well established, garnering positive media coverage and recognition from industry experts. Early successes, such as the rapid conversion of initial sign-ups into active transactions, underscore the effectiveness of its comprehensive service model. The track record is further reinforced by the support received from prominent VCs, including Protofund and IDEA Fund, who have invested in previous funding rounds.

Rising housing costs in key metropolitan areas, which have increased by 5-10% year-over-year, add to the demand for innovative homeownership solutions. Furthermore, Nestment’s unique integrated platform, combining advanced financial analytics with comprehensive human support, sets it apart from competitors and strengthens its market position in alternative homeownership.

Here's what we don't: The competitive real estate software market features established players like Zillow and Redfin that offer comprehensive services, while Nestment’s niche focus on first-time buyers, though specialized, limits its market reach. Its high revenue multiple of 20.0x raises concerns about overvaluation relative to industry benchmarks. With only $250K cash on hand and a monthly burn rate of $68K, potential cash flow issues could impede growth unless further capital is secured.

Technological challenges also loom; as a digital platform, Nestment must continuously innovate to meet evolving user expectations. Any lag in technological advancement could diminish its competitive edge in the fast-paced proptech sector. Market adoption remains a critical hurdle, as achieving widespread acceptance among first-time homebuyers requires significant marketing and customer acquisition efforts. Additionally, early transactions reveal a failure rate of 10-20% in group co-buying due to interpersonal or legal disputes, necessitating additional customer support and legal resources. Overall, these challenges remain significant.

STAFF PICKS 🌶️

TRAiNED

TRAiNED is transforming mortgage processing with AI-driven automation, helping lenders reduce costs and scale efficiently. The company has secured 15 clients and surpassed $1 million in annual recurring revenue in Q4 2024. Now raising funds on StartEngine at a $20 million valuation, TRAiNED plans to expand product development, sales, and customer support to drive further growth in the mortgage industry.

• Valuation Cap: $20 million

• Minimum Investment: $500

CounterDrone

CounterDrone is advancing drone deployment with OmniDock, a weatherproof, climate-controlled multi-UAV docking station designed for autonomous operations. Certified for Beyond Visual Line of Sight operations in the US and Australia, the company aims to expand capabilities with fully remote launch and recovery.

• Pre-Money Valuation: $5 million

• Minimum Investment: $500

Arro Finance

Arro Finance is improving financial access by offering a manageable starting credit line and a gamified learning experience to help consumers build financial confidence. The company secured a $30 million warehouse debt facility in November 2024 and operates at a $1.3 million run rate.

• Valuation Cap: $34 million

• Minimum Investment: $500

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