2023 was a year marked by economic uncertainties and challenging market conditions, yet Katipult’s customers leveraging its proprietary DealFlow platform demonstrated remarkable resilience and growth in many key capital raising metrics.
Across a wide range of capital raising exemptions that Katipult DealFlow supports, including Reg A+ and Reg D offerings in the US and the new LIFE exemption in Canada, we have identified the key trends of private markets activity over the last 12 months.
Robust Capital Raises:
One of the strongest growth metrics of 2023 was the substantial increase in capital raised by customers using Katipult DealFlow. Our investment platform facilitated $647M in private capital deals, with a 71% increase from enterprise customers, growing from $318M raised in 2022 to $545M in 2023.
Despite the challenging economic environment that characterized the year, DealFlow introduces modern workflows to improve the capital raising process for all stakeholders, which results in faster deal closings, lower investor friction, and more successful capital raising efforts.
Increased Transaction Volumes on our Investment Platform:
In addition to the amount of capital raised, the total number of enterprise transactions also grew to 5,226 in 2023, reflecting a 6.8% increase from the 4,892 transactions recorded in the previous year. Across all customer tiers, transactions for the year reached 19,018.
This upward trajectory in transaction volumes indicates a more robust dealmaking ecosystem and higher participation rates from investors.
Average Transaction Values on the Rise:
The average value of transactions also increased significantly as investors contributed more capital per investment than in the prior year. In 2023, the average investment transaction value stood at $78K, a 62.5% increase from the $48K recorded in 2022.
With many investors allocating their capital more conservatively in 2023, higher-quality investment opportunities attracted capital quickly and at higher dollar values per transaction from investors.
Busiest Months and Peak Capital Raise:
Examining the monthly trends for enterprise transactions, December emerged as the busiest month for transaction volume, with 679 deals. June and May followed closely, with 608 and 603 deals, respectively. December also saw the highest amount of capital raised within the month, securing $79.8M. June and September followed suit with $58.1M and $56.4M, respectively.
Surge in Deal Launches:
The number of new deals launched using Katipult DealFlow in 2023 showcases the increasing number of deal types and exemptions the platform supports, as well as the overall improvement in capital markets activity within the broader industry. Katipult enterprise customers using our investment platform launched 636 deals throughout the year, marking a 55% increase from the 409 deals launched in 2022.
Looking ahead to 2024:
The macroeconomic outlook for capital markets appears poised for continued improvement in 2024, creating a favourable environment for increased deal activity.
Customers using Katipult DealFlow are strategically positioned to capitalize on this trend by leveraging the platform's ability to accelerate deal closings and manage heightened deal and investor activity.
