Equity Crowdfunding Performance Monitor

Last updated: 22 September 2015

Preface
The equity crowdfunding industry in Germany, Austria, and Switzerland is a very young industry
that did not become relevant until 2012. Since then, the industry has rapidly evolved and is now
an important element in venture-capital financing for innovative German start-ups.
Thus far, however, data on the performance of crowdfunded start-ups and data on the
performance of shares held by crowdfunding investors have not been publicly available.
Consequently, neither journalists nor scientists have been able to make reliable statements
about the business development of crowdfunded start-ups.
This is due to the fact that the data necessary for analysis (e.g., current business valuations and
financing volumes of the start-ups) tend to be unavailable to the public and are kept confidential
by the start-ups for understandable reasons. Solely equity crowdfunding platforms have access
to all the data necessary for a comprehensive performance analysis. Nevertheless, in order to
aggregate and analyze these data, equity crowdfunding platforms need to have the resources
necessary to collect such large amounts of data and must also have collected the data on a
regular basis since the platform's launch. Companisto has constantly done so ever since its first
financing campaign in June 2012.
Because of its current annual financing volume of 12 million, Companisto is the leading equity
crowdfunding platform in Germany, Austria, and Switzerland and has collected more data than
its competitors. By means of this equity crowdfunding performance monitor, Companisto is
providing the public and scientists with these data for the first time.
In doing so, we intend to make the performance of crowdfunded start-ups as transparent as
possible.
Berlin, 22 September 2015

Tamo Zwinge and David Rhotert, Companisto managing directors

Table of Contents
Preface........................................................................................................................................... 1
Table of Contents .......................................................................................................................... 2
Executive Summary ....................................................................................................................... 3
Data Pool ....................................................................................................................................... 4
Company Value Development of Companisto Start-ups .............................................................. 5
Share Value Development of Companisto Start-ups..................................................................... 6
Average Share Value Development........................................................................................... 6
Total Share Value Development................................................................................................ 7
Average Annual Share Value Development .............................................................................. 9
Distribution of Share Value Development .............................................................................. 10
Bankruptcy Statistics ................................................................................................................... 11
KPIs of Start-ups Financed Through Companisto ........................................................................ 12
Assessment and Future Outlook ................................................................................................. 13
Contact Details ............................................................................................................................ 14

Executive Summary
The market leader in equity crowdfunding, Companisto is using this report to publish
information on the business development of start-ups financed through Companisto for the first
time. For this purpose, we have analyzed the development of share values over the last three
years. This executive summary contains a concise presentation of key performance indicators.
For a detailed explanation of the individual values and of their calculation, please refer to the
following sections of this report.
The total value of the start-ups financed through Companisto has increased from 83.51 million
to 102.92 million. This corresponds to a 23.24 % increase in value.
In addition to the company value of the start-ups, the value of the investors' (also referred to as
"Companists") shares has also increased by 15.32 % on average.
These data prove that investments in equity crowdfunding rounds are long-term investments,
for the shares from 2012 have seen the most significant increase in value. In fact, their value has
increased by an average of 87.60 %.
If one converts these increases in value to annual values, the average annual increase in value
amounts to 8.50 %.
For the calculation of value increases, we also took account of the five cases of bankruptcy
during the approximately three years since the launch of Companisto. In total, five out of 38
start-ups financed through Companisto have been declared bankrupt, which corresponds to
13.16 %. The capital invested in these five start-ups amounts to 5.57 % of the total capital
invested through Companisto.
The start-ups financed through Companisto have created a combined total of 278 jobs and
currently have a combined total of 1.66 million customers.
As financing volumes in the equity crowdfunding sector have been constantly increasing for the
past three years (and as the average financing volume per start-up on Companisto has already
reached 657,376.60 in 2015), we expect the equity crowdfunding sector to keep growing in the
future.
Because of these increasing financing volumes, angel investors, development banks,
government and university start-up promotion programs, and venture capital companies will
keep launching co-financing rounds together with Companisto. To date, as many as 78.57 % of
equity crowdfunding campaigns on Companisto have already been co-financing rounds during
or prior to which angel investors or venture capital companies invested in the start-ups.

Data Pool
For this equity crowdfunding performance monitor, we analyzed the development of all startups that were financed through the crowd and completed their Companisto campaign on or
before 28 August 2015. Therefore, we analyzed a total of 41 financing rounds for 38 start-ups.
Start-up
doxter
ePortrait
Companisto
BetterTaxi
Meine-Spielzeugkiste
Ludufactur
livekritik.de
swabr.com
Tame
SponsoRun
Foodist
5 Cups and some sugar
SongFor
Wunsch-Brautkleid
Wonderpots
OnlineVersicherung.de
sporTrade
Zapitano
movinary
Lizzar
Sommelier Priv
Schnuff & Co.
Meine-Spielzeugkiste 2
nichtraucher.de
readfy
Foodist 2
BiteBox
fotovio
Kyl
MyParfum
Knicket
EN3
Panono
EDITION F
Jaimie Jacobs
Pablo & Paul
EBS Technologies
Freygeist
Foodist 3
Unyte
food4fans
Total

Completed on
Financing volume
100,000.00
2012-09-09
100,000.00
2012-09-11
100,000.00
2012-09-28
100,000.00
2012-12-04
100,000.00
2013-01-17
50,000.00
2013-01-22
80,525.00
2013-03-22
55,640.00
2013-04-04
250,000.00
2013-04-12
73,935.00
2013-04-25
175,000.00
2013-05-11
300,000.00
2013-07-02
41,290.00
2013-07-05
158,485.00
2013-08-15
500,000.00
2013-09-09
300,000.00
2013-09-10
100,000.00
2013-10-11
106,895.00
2013-10-22
100,000.00
2013-11-12
50,995.00
2013-11-30
300,000.00
2013-12-12
67,785.00
2013-12-13
355,300.00
2014-02-20
164,980.00
2014-02-27
500,000.00
2014-03-24
295,200.00
2014-03-24
500,000.00
2014-04-05
148,640.00
2014-06-10
940,650.00
2014-08-10
443,995.00
2014-08-28
263,765.00
2014-10-10
727,945.00
2015-02-10
1,618,945.00
2015-02-23
252,830.00
2015-03-31
250,000.00
2015-04-20
166,925.00
2015-05-15
258,825.00
2015-06-09
1,500,000.00
2015-06-18
1,000,000.00
2015-07-24
188,715.00
2015-07-27
316,140.00
2015-08-17
13,103,405.00

In our analysis, we decided not to include the successful equity crowdfunding campaign for
Weissenhaus, which raised 7.5 million from the crowd on Companisto. This decision was due
to the fact that the Weissenhaus campaign was a real estate investment campaign, which cannot
be compared to start-up campaigns on Companisto because of its different investment model
(e.g., because of its shorter loan period and its fixed interest rate). The Companists who invested
in Weissenhaus received their first annual interest payment of 4 % p.a. on 31 July 2015.

All data in this document were last updated on 28 August 2015.

Company Value Development of Companisto Start-ups

Notes on Company Value Development

The company value development shows how the company value of all start-ups financed
through Companisto has developed since the end of their equity crowdfunding campaign. To
calculate the start-ups' value development, we compared the company value of each start-up
at the time of the equity crowdfunding campaign with the company value used in that start-up's
most recent financing round.
Since the current company values are confidential data taken from participation contracts, we
cannot list the individual company value for each start-up, but may publish only the combined
total for all start-ups.
The company value reflects the value of the entire start-up rather than that of the Companists'
shares.
The overall value of the start-ups financed through Companisto has increased from 83.51
million to 102.92 million. This corresponds to a 23.24 % increase in value since our platform's
launch in June 2012.
What Does the Company Value Development Show?
The company value development illustrates how the company value of all start-ups financed
through Companisto has developed after their equity crowdfunding campaign. It indicates
whether the start-ups have developed rather positively or negatively.

How Was the Company Value Calculated?

The current company value is the valuation used during a start-up's most recent (followup) financing round. More specifically, we used the company values that included the
capital invested in the financing round (i.e., the post-money valuations) for the
calculation.
For each start-up, we compared the company value at the time of the equity
crowdfunding campaign with that determined during the most recent follow-up
financing round.
Moreover, we used a company value of 0 for the five start-ups that were declared
bankrupt.
Finally, companies with more than one financing campaign on Companisto (i.e., Foodist
and Meine-Spielzeugkiste) appear only once in the list. For these start-ups, we included
the company value development between the first equity crowdfunding campaign and
the most recent financing round.

Share Value Development of Companisto Start-ups

Average Share Value Development

Explanation of Average Share Value Development

The average share value development shows how the value of the Companists' shares has
changed on average. Consequently, the average share value development shows how the
investment opportunities on Companisto performed on average.
The current share values in this calculation are based on the company valuations used in the
most recent financing round of the start-ups.
On average, the value of the Companists' shares grew by 15.32 %.

These data prove that investments in equity crowdfunding campaigns are long-term
investments. The oldest shares from 2012 have experienced the most significant increase in
value (87.60 %), but the shares from 2015 have also increased in value by 6.23 % already.
What Does the Average Share Value Development Show?
The average share value development indicates which increase in value an investor would have
experienced if he or she had invested the same amount (e.g., 500) in all equity crowdfunding
campaigns.
This is the most appropriate way of measuring the performance of equity crowdfunding
campaigns because in the case of equity crowdfunding unlike in the case of mutual funds all
investors may decide themselves if and how much they want to invest in a start-up.
How Was the Average Share Value Development Calculated?
First, we calculated the current share value based on the latest company valuation. In
order to do so, we multiplied the start-ups' post-money valuation from the most recent
financing round by the Companists' current amount of holding.
To determine the value development, we then compared the amount invested in the
equity crowdfunding campaign with the current share value.
Finally, we used the individual share value development of all start-ups to calculate the
average share value development.
We also considered potential dilution of the Companists' shares due to follow-up
financing rounds.
Moreover, we used a company value of 0 for the five start-ups that were declared
bankrupt.

Total Share Value Development

Explanation of Total Share Value

The total share value is the combined value of all shares held by the Companists. It shows the
precise value of the Companists' shares in the start-ups. The total share value is calculated based
on the company valuations used in the most recent financing round of the start-ups.
In total, the value of all Companists' shares issued since the launch of Companisto grew from
13.10 million to 14.53 million. This corresponds to a 10.91 % increase.
What Does the Total Share Value Development Show?
The total share value development shows how the value of all shares on Companisto has
changed. In other words, it illustrates the performance in terms of share value development for
all Companists. The total share value development does not, however, indicate the average
performance of the investment opportunities offered, which is also called the "average share
value development" (for details on this aspect, please see above).
Mutual funds use the total share value development as a performance indicator because
managers of such funds decide how the fund invests the capital available and which share in the
total development investors receive.
In the case of equity crowdfunding, investors can decide themselves in which start-up they want
to invest. Crowdfunding investors may also decide themselves which amount they want to invest
in each start-up. Consequently, it is more appropriate for a performance analysis of equity
crowdfunding to focus on the performance that an investor would have experienced if he or she
had invested the same amount in all start-ups (e.g., 500). For this purpose, one uses the
"average share value development" (see above).
How Was the Total Share Value Development Calculated?
We calculated the total share value by multiplying the most recent post-money
valuation of the start-ups by the Companists' current amount of holding.
In all cases, we compared the amount invested through equity crowdfunding with the
share value of the most recent follow-up financing round.
We also took account of potential dilution and of the five bankrupt start-ups here.

Average Annual Share Value Development

Explanation of Average Annual Share Value Development

The average annual increase in share value is the annualized increase in value of the Companists'
shares for the period from June 2012 through August 2015. For this purpose, we converted every
start-up's individual increase in share value to an annual value and then calculated the average
value for all start-ups.
On average, share values increased by 8.50 % per year.
What Does the Average Annual Increase in Share Value Show?
The average annual increase in share value makes it easier to compare Companisto investments
with other investment types, but it should be noted that an increase in share value is not the
same as a return that is actually paid out. An increase in share value has not been paid out yet
and merely represents a potential future return; it is not an actual return. The final return paid
out to investors may be higher or lower.
As investments in equity crowdfunding campaigns are risk capital investments, it is also possible
that a start-up which has seen an increase in value becomes bankrupt, causing investors to get
no return at all. At the same time, the return may increase significantly because the company
value may grow disproportionately if the company keeps developing positively.
How Was the Average Annual Increase in Share Value Calculated?
First, we converted the start-ups' individual increase in share value into annual values.
Afterward, we used these annual values to calculate the average annual increase.
We also took account of potential dilution and of the five bankrupt start-ups here.

Distribution of Share Value Development

Explanation of Distribution of Share Value Development

These statistics illustrate the distribution of share value development. For instance, there are
three start-ups whose Companisto share value has grown by a factor between 2 and 2.5 (i.e., by
100 % - 150 %).
For 23 start-ups, there has not yet been any new valuation because this valuation is usually part
of a follow-up financing round and because follow-up financing rounds usually do not take place
until a company requires additional capital. Nonetheless, it is also possible that start-ups that
have not launched another financing round since their Companisto campaign have already
increased their company value.
What Does the Distribution of Share Value Development Show?
The diagram of the distribution of share value development better illustrates whether the total
increase in value is due to many start-ups or merely a few particularly important start-ups.
How Was the Distribution of Share Value Development Calculated?
We grouped together the individual increases in share value according to their
percentage (e.g., we created a group for 100 % - 150 %).
Moreover, we treated multiple financing rounds for the same start-up (i.e., for Foodist
and Meine-Spielzeugkiste) as separate rounds because Companists' investments in
different rounds were based on different company valuations.

10

Bankruptcy Statistics

Explanation of Bankruptcy Statistics

The bankruptcy statistics consist of two aspects:
1) The percentage of start-ups that were financed through Companisto and became bankrupt
(i.e., had to file for insolvency proceedings)
2) The share of these bankrupt start-ups in the total investment volume on Companisto
The bankrupt start-ups are:
Company
SponsoRun
sporTrade
Zapitano
Sommelier Priv
Fotovio
Total

Completed on
Financing volume Share in total investment volume
73,935.00
0.56%
2013-04-25
100,000.00
0.76%
2013-10-11
106,895.00
0.82%
2013-10-22
300,000.00
2.29%
2013-12-12
148,640.00
1.13%
2014-06-10
729,470.00
5.57%

What Do the Bankruptcy Statistics Show?

The bankruptcy statistics show to what extent crowdfunding investors were affected by the risk
of losing their entire investment in the past. Thus far, five out of 38 start-ups financed through
Companisto (i.e., 13.16 %) had to file for insolvency proceedings. The capital invested in these
five bankrupt start-ups amounts to 5.57 % of the total capital invested through Companisto.
If one compares these percentages to the usual bankruptcy rates within the venture capital
industry, they are very low.

11

Notes:
The statistics show which percentage of start-ups financed through Companisto have
become bankrupt. We treated multiple financing rounds for the same start-up (i.e., for
Foodist and Meine-Spielzeugkiste) as a single financing round. In fact, if one treats these
multiple financing rounds as separate rounds, the percentage of bankruptcies is even
lower, that is, 12.20 % (i.e., five out of 41 financing rounds).

KPIs of Start-ups Financed Through Companisto

Explanation of KPIs of Start-ups Financed Through Companisto

The annual revenues listed above represent the combined total for all Companisto start-ups over
the last 12 months.
The total financing volume is the sum of investments in the start-ups since their foundation. It
includes all equity and borrowed capital financing rounds and the capital raised through equity
crowdfunding.
The number of employees is the sum of all employees working for the Companisto start-ups.
The number of customers is the total amount of customers of the start-ups.
What Do the KPIs of the Companisto Start-ups Show?
The figures prove that the start-ups financed through Companisto are already making a positive
contribution to the overall economy.
The figures also show that the Companisto start-ups are also enjoying considerable popularity
among investors outside the crowd. Indeed, for each euro invested by the crowd, the start-ups
received more than two euros from other investors (venture capital companies, angel investors,
banks, etc.).

12

In most cases, professional and/or institutional investors have confirmed the validity of the
Companisto start-ups' business models after evaluating the start-ups themselves.
Moreover, the start-ups financed through Companisto have a high reach (of 1.66 million
customers), so they are not merely small niche companies.
In total, the Companisto start-ups have already created 278 jobs. This benefits young
professionals in particular because these people often start their career in a start-up after
completing their studies or their apprenticeship.
Notes:
To calculate annual revenues, we focused on the period from July 2014 through June
2015.
For the total financing volume, the number of employees, and the number of customers,
we used the data available in July 2015.

Assessment and Future Outlook

The value development of the Companisto shares (15.32 %) can be considered positive,
especially because it includes the bankrupt start-ups. So far, the performance has indicated that
a clear increase in value is possible through broad diversification of investments despite the fact
that equity crowdfunding is a type of risk capital investment.
Moreover, the value development of the start-ups financed through Companisto (23.24 %)
suggests that the start-ups' business models are developing positively in most cases.
Needless to say, we cannot make a definitive statement on the performance of the Companisto
shares and start-ups yet because there are no new valuations for some of the start-ups.
Based on the increase in value of the other Companisto start-ups, however, we are optimistic
that those start-ups that have not been valuated again will also increase in value.
As financing volumes in the equity crowdfunding sector have been increasing for the past three
years, we expect the equity crowdfunding sector to keep growing in the future. Whereas startup campaigns on Companisto raised as little as 100,000 on average in 2012, this value has
increased to 657,376.60 per start-up in 2015.
Because of these increasing financing volumes, angel investors, development banks,
government and university start-up promotion programs, and venture capital companies will
keep launching co-financing rounds together with Companisto. To date, as many as 78.57 % of
equity crowdfunding campaigns on Companisto have already been co-financing rounds during
or prior to which angel investors or venture capital companies invested in the start-ups.
As equity crowdfunding has enabled private individuals (with the exception of angel investors)
to make direct investments in start-ups for the first time, it has become a new source of venture
capital financing for innovative ideas to the German economy.

13

Contact Details
For press inquiries and detailed information on Companisto, please contact:

Andr Glasmacher
-----------------------------------Public Relations Manager
Phone: +49 (0)30 208 48 49 45
Fax: +49 (0)30 208 48 49 41
Companisto GmbH
Kpenicker Str. 154
10997 Berlin, Germany
andre.glasmacher@companisto.com
www.companisto.com

Address

Companisto GmbH
Kpenicker Strae 154
10997 Berlin, Germany

Managing directors
Tamo Zwinge, LL.M.
David Rhotert

Contact Details
info@companisto.com
www.companisto.com
Phone: +49(0)30 - 208 484 940
Fax:
+49(0)30 - 208 484 941

Registered Company Office: Berlin

Amtsgericht (local court)
Charlottenburg
HRB 132811B
VAT ID: DE 276 014 929

14