From $3.91M to $15.35M – Looking at Real Estate Crowdfunding's Growth

CHART OF THE WEEK 📈

By Teddy Lyons | Read

• These figures represent only real estate deals in the investment crowdfunding space, where everyday (retail) investors directly fund physical properties and earn returns through rental income or property value increases. We excluded any deals for software platforms that primarily generate subscription-based revenue, as well as “lifestyle” businesses like restaurants, hotels, or movie theaters—since those investments hinge on food, beverage, or hospitality revenue, rather than income tied to real estate assets.
  

• In 2016, there were no recorded deals (n=0). By 2017, the first single deal (n=1) raised a modest $4,200. The total increased to $30,650 in 2018 (n=3), and then saw a substantial jump to $1.4 million in 2019 (n=2).
  

• Funding volumes climbed quickly from $4.86 million in 2020 (n=6) to $8.27 million in 2021 (n=12) and further to $9.21 million in 2022 (n=16). This period saw a rising number of deals and larger total capital commitments, indicating growing investor interest.
  

• After dipping to $3.91 million in 2023 (n=11), total funding rebounded sharply to $15.35 million in 2024 (n=29). This near-quadruple increase from the previous year, coupled with more than double the number of deals, underscores a renewed momentum in physical real estate crowdfunding.

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

INVESTMENT ROUNDTABLE

By Sam Fiske / Watch

This week, we're decoding tax essentials for crowdfunding investors, analyzing recent shifts in real estate investing trends, and spotlighting Hylio—a drone innovator reshaping precision agriculture.

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PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Omneky specializes in AI-driven digital advertising, offering a platform that automates ad creative generation and optimization. By integrating omnichannel analytics, creative development, and brand management, the platform helps brands and agencies streamline their advertising strategies. Traditional ad creation is costly and time-consuming, but Omneky’s AI-powered solution delivers brand-safe content at scale, achieving a fivefold return on ad spend and tenfold savings in cost and time. This automation enables businesses to maximize their advertising budgets while reducing operational complexities.

Key People: Omneky is led by CEO Hikari Senju, a Harvard-trained AI expert who founded the company in 2018 after co-founding Quickhelp. COO Elisa Phillips, with 17 years at Google and DoorDash, drives business development and ad sales, while CPO Chris Martiniak, formerly at Liftoff and Yahoo! Search, leads product strategy in ad-tech. Head of AI Inder Preet Singh Walia, with experience at Amazon, ensures Omneky’s AI-driven content generation remains cutting-edge. Their combined expertise supports the company’s mission to enhance digital advertising with AI, though expanding into international markets or strategic partnerships could accelerate growth.

Here's what we like: Omneky's strong market position is driven by its focus on AI-powered advertising solutions, enabling brands and agencies to optimize their ad spend efficiently. The U.S. digital advertising market, valued at $169.1 billion and growing at 15.4% annually, presents immense opportunities for companies that can provide cost-effective and impactful advertising strategies. Omneky's AI-driven platform streamlines ad creative development, offering substantial time and cost savings, which appeals to businesses looking for efficient advertising solutions.

A key factor in Omneky’s growth is its strategic partnerships with industry giants such as Nvidia, Meta, and Amazon. These collaborations enhance the company’s credibility and expand its market reach. Omneky has also demonstrated significant traction, reporting a 43% revenue increase between 2022 and 2023, highlighting its ability to scale within the competitive digital advertising space.

Additionally, Omneky has secured $11.45 million in funding from leading AI investors, including SoftBank, AIX Ventures, and Village Global. By leveraging emerging technologies and expanding its platform capabilities, Omneky is well-positioned for continued growth in the evolving digital advertising landscape.

Here's what we don't: Omneky faces intense competition from well-established players like AdRoll and Criteo, which have greater market reach, resources, and comprehensive advertising solutions. This crowded market makes it challenging for Omneky’s AI-driven approach to differentiate itself meaningfully. Additionally, navigating data privacy regulations could pose significant hurdles, potentially restricting how the company utilizes consumer data for targeted advertising. Compliance costs and regulatory uncertainties may further impact its operational flexibility.

Another concern is Omneky’s valuation. Its high revenue multiple of 38.6x on an $80 million convertible note valuation cap raises questions about its sustainability relative to industry benchmarks. Such a premium valuation implies high growth expectations, which, if unmet, could pose risks for investors. Given its current revenue scale, this valuation may be difficult to justify, potentially deterring new investors who seek more balanced risk-reward profiles.

If Omneky fails to achieve aggressive growth targets, its valuation could face downward pressure, affecting future fundraising prospects and overall market confidence. While Omneky shows moderate growth between 2022 and 2023, it doesn't share its revenues for 2024 yet. If 2024 revenues show a slowdown in growth, the investment opportunity may no longer be as attractive.

STAFF PICKS 🌶️

BuildClub

BuildClub uses AI and machine learning to provide real-time retail price comparisons while users shop online. Its platform covers over 1.5 million products from 4,000+ retail stores, helping customers find the best deals. With 77,000 registered users and over $5 million in sales, BuildClub is scaling rapidly.

• Pre-Money Valuation: $45.5 million

• Minimum Investment: $500

Ignite Biomedical

Ignite Biomedical is developing AI-driven blood-based tests using mRNA biomarkers to predict therapy responses for autoimmune diseases and behavioral health. Its TNFi treatment response predictor test is advancing through development and validation in partnership with Liquid Biosciences and SmartHealth Diagnostics.

• Valuation Cap: $20 million

• Minimum Investment: $496

PowerBox Technology

PowerBox Technology provides renewable energy solutions for factories, integrating solar, energy storage, and grid power through its PowerBlock Modular Platform. Using advanced predictive software, it optimizes electricity costs and uptime with cloud and edge computing. PowerBox has developed a small-scale prototype and received recognition from Google Cloud for Startups

• Valuation Cap: $3 million

• Minimum Investment: $100

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