Investment Banking 101 - How to Evaluate a Crowdfund Opportunity

John Colley, Digital Entrepreneurship

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16 Lessons (45m)
    • 1. How to Evaluate a Crowdfund Opportunity Udemy

    • 2. 1 Key Information

    • 3. 2 Business Summary

    • 4. 3 Financial Summary

    • 5. 4 Managment Skills

    • 6. 5 Management Experience

    • 7. 6 Management Commitment

    • 8. 7 Product Market

    • 9. 8 Product USP

    • 10. 9 Product Competition

    • 11. 10 Product Traction

    • 12. 11 Investment Profitability

    • 13. 12 Investment Cash Flow

    • 14. 13 Investment Returns

    • 15. 14 Bonus Create a Methodology

    • 16. 10 Keys to Evaluating a Crowdfund


About This Class

How to Evaluate a Crowdfunding Opportunity


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This introduces the course which is going to look at how you can evaluate a Crowdfunding opportunity

Key Information

Before we get into specifics, there is some basic data which you will need to know for every Crowdfund and we cover it in this lecture.

Business Summary

Every company pitch page will include a summary of its business and from this you need to understand the basics of what the company does, its product, customers and market. This will be supported by other information but this is your starting point.

Financial Summary

The financial summary is your first opportunity to evaluate the numbers behind the business.  This is useful for a first view of the potential value of the business and the opportunity.  If you are not equity crowdfunding, this is section is helpful (if provided) to enable you to form a view of the likelihood that the product you are supporting will be delivered.

Management Skills

The management are the team who are going to deliver your product or, in the case of an equity crowdfunding, the return on your investment so you had better take a close look at their skills.

Management Experience

Its good to see a track record both in business and in fund raising when you look at your Management team, so bear these points in mind.

Management Commitment

You want your Management team to be committed to the business - take a look at what they have put in time-wise and in terms of money.  Who benefits from the Option pool.  These are the guys who are going to deliver for you and you want to know that they are going to stay the course.

Product Market

The Product's market is a vital component of the equation and we need to understand this background to the context in which the product will be sold and will compete with other products in the same or similar markets.

Product USP

To be successful you want to see a product with some unique characteristics which will enable it to compete successfully in its market and make it difficult for its competitors to copy.

Product Competition

You need to take a close look at the competition the product is facing and understand this aspect of its market. Put the product in this context to understand its chances of being successful.

Product Traction

Traction - the extent to which the product is finding customers in the market is extremely important but is dependent on the stage of development of the business.

Investment Profitability

A good understanding of profitability is the key to understanding whether your investment is going to be a success, particularly in equity crowdfunding. You want to invest in a company that is going to be very profitable down the line because that is what will make it valuable to an acquirer or a market and provide you with your exit.

Investment Cash Flow

Understanding the Cash Flow of an investment is critical and no more so than in a Crowdfunding. Whether your opportunity is rewards based or equity, you need to have a grasp of how much cash is being raised, what for and how long it will last.

Investment Returns

We bring this analysis together by summarising what the opportunity means for your potential investment returns.  

You need to consider a number of factors in this evaluation which are explained in this lecture.

Create a Methodology

This lecture explains how you can turn this framework into a methodology for evaluating Crowdfunding Investment Opportunities.

There is a Score Sheet Excel Spreadsheet attached with the Course project to aid you in this.

Summary - 10 Keys to Evaluating a Crowdfunding Opportunity

This summarises the 10 most important factors in the evaluation of a Crowdfunding investment opportunity.

A Copy of the slide decks for all these lectures are attached with the Course description


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My followers are the first to hear about these opportunities!


I hope you enjoy the course!

See you Inside

Best regards