NCFAs innovation and funding ecosystem

Category Archives: Online Funding Portals

October 13, 2021   Entrepreneurs and Start-ups, Equity Crowdfunding, FinTech and Alternative Finance, Fintech International, Fintech Services, Fundraising, Investing, Partnerships, Innovation and Resources, Online Funding Portals, Venture funding Best Practices   No comments

VCs are becoming modern-day investment banks

Sifted | Nicolas Colin | Oct 13, 2021

funding continues to evolve - VCs are becoming modern-day investment banksThese days, a closely watched phenomenon is the growth and diversification of Andreessen Horowitz, one of the most prominent venture capital firms in Silicon Valley. Not only is it hiring new partners and employees by the dozens, but it is also expanding its approach to the market, going well beyond the usual artisanal approach of early-day venture capitalists.

For a long time, such firms would simply sign a cheque in exchange for equity at a given stage — whether seed or Series A or beyond. Now some of them are doing much more than that: investing across various stages, exploring new geographies and designing new financial instruments to adjust their offering to the specific needs of startups in sectors such as crypto, real estate, healthcare, financial services and others. It makes sense because, more often than not, startups now need more than just equity: they also need debt financing, working capital, structured financial products, access to specific counterparties and more.

See:  European Government Funds May Get Distributed by European Crowdfunding Platforms

If we look a bit more broadly, we see that this model already exists: it’s called an investment bank! Financial behemoths such as Goldman Sachs, Morgan Stanley and JPMorgan effectively act as one-stop shops for their clients. They provide equity capital, debt capital, asset management, liquidity, sophisticated risk management, market research and opportunities for mergers and acquisitions.

If a single firm can do it all for its clients, then there are economies of scale on both sides. The more capital providers you’re connected with, the more you can tailor your offer to your clients’ specific needs. In the other direction, the more clients you have, the more you can market your portfolio of opportunities to those who can provide capital. And you can already spot these networks at work in the tech world.

It is logical, then, that the most successful VC firms are slowly morphing into a new breed of investment banks — gatekeepers of the capital markets for tech startups and tech companies.

“The most successful VC firms are morphing into a new breed of investment banks — gatekeepers of the capital markets for tech startups”

What today’s startups need

Compared to the tech businesses of the past, today’s startups do have more diverse needs. For example, the rise of revenue-based financing, dominated by the likes of Pipe, Capchase, and Uplift1, has made startups offering SaaS products realise that they could fund part of their endeavour with non-dilutive debt capital rather than costly equity capital. Could the same investment firm provide the equity capital to kickstart the venture and then the debt capital to fund its growth once revenue flows? American VC General Catalyst sure thinks so.

Read:  Doug Ellenoff on US Reg CF Increasing Issuer Caps to $5 million: Investment Crowdfunding Will Challenge Traditional Venture Capital

On the other hand, those with capital on their hands feel that technology is where you can enjoy outsized returns over the long term; therefore, they’re seeking more exposure. As they realise it’s not always easy to access the best deals, maybe they’ll start thinking about trusting an investment bank with large amounts of money to be deployed across its client portfolio to generate the best returns.

It is no coincidence, then, that indexing, a concept long confined to the stock market, is becoming more visible in venture capital (see John Luttig here, and Tomasz Tunguz here). Instead of chasing a few deals a year, just trust a large, established firm with your money and let it index it on the entire tech market! A traditional VC firm can’t do that, but an investment bank does.

Continue to the full article --> here

 

NCFA Jan 2018 resize - VCs are becoming modern-day investment banks The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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August 23, 2021   Blockchain, Crypto, Digital Assets Regulations, Blockchain, Crypto, Digital Assets, Tokens, Entrepreneurs and Start-ups, FinTech and Alternative Finance, Fintech Services, Fundraising, Investing, Partnerships, Innovation and Resources, Legal Issues and Regulation, Online Funding Portals   No comments

Coinberry gets relief from OSC to trade crypto

Investment Executive | James Langton | Aug 20, 2021

OSC gives Coinberry relief to trade crypto - Coinberry gets relief from OSC to trade cryptoThe ruling includes investment limits, disclosure rules and regulatory reporting conditions 

Crypto-trading platform Coinberry is the latest firm to receive regulatory relief from the Ontario Securities Commission (OSC) while it continues its bid to get approval to operate as a regulated dealer.

The OSC issued a decision granting the firm relief from prospectus and trade reporting requirements for two years, allowing it to trade crypto contracts with investors and operate a crypto-trading platform.

The relief was granted to allow the firm to operate while simultaneously seeking registration as an investment dealer. Coinberry wants to join the Investment Industry Regulatory Organization of Canada (IIROC).

Podcast:  Ep30-Apr 12: The Future of Canadian Crypto With Andrei Poliakov

The decision comes as part of the Canadian Securities Administrators’ (CSA) approach to regulating the fledgling crypto space, which includes granting temporary relief designed to “foster innovation and respond to novel circumstances,” while also allowing firms to operate under requirements tailored to their specific circumstances.

“The overall goal of the regulatory framework is to ensure there is a balance between the need to be flexible and facilitate innovation in the Canadian capital markets, while upholding the regulatory mandate of promoting investor protection and fair and efficient capital markets,” the OSC decision noted.

Under the relief granted to Coinberry — which is specific to the firm and doesn’t create a precedent for other crypto firms — the OSC imposed a variety of conditions on the firm, including investment limits for certain clients, disclosure requirements and certain reporting conditions.

According to the decision, the firm’s clients are segmented into “accredited” crypto investors, “eligible” crypto investors and others.

While there are no limits for certain cryptos (Bitcoin, Bitcoin cash, Ether and Litecoin), the decision sets limits for other kinds of crypto such as Dogecoin; and the regulator’s decision explicitly prohibits trading in Tether.

See:  Crypto in Canada: Where are we today, and where are we heading?

For all other cryptocurrencies, the firm’s clients that don’t qualify as either “accredited” or “eligible” are limited to buying $30,000-worth.

“Eligible” crypto investors at the firm are limited to acquiring $100,000-worth of non-specified crypto. These investors are defined in the decision as having $400,000 in assets, an income of $75,000 (and $125,000 with a spouse).

There are no investment limits on so-called “accredited” crypto investors, defined as clients with $1 million in financial assets (including crypto), annual pre-tax net income of $200,000 (and $300,000 with a spouse), or $5 million in total assets.

In addition to the investment limits, Coinberry will be required to provide clients with risk statements and educational materials on crypto assets. The firm will also have to assess the suitability of trades and monitor clients’ trading activity for signs of ill-informed trading.

The firm can’t charge commissions on client trading; instead, it can generate revenues on the spread between the prices that it gets for assets from liquidity providers and the prices at which it transacts with its clients.

Separately, the OSC also continues to bring enforcement action against crypto-platforms that aren’t heeding its warning earlier this year to start seeking registration.

Continue to the full article --> here

 

NCFA Jan 2018 resize - Coinberry gets relief from OSC to trade crypto The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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July 29, 2021   Digital, NEO and Open Banking, Enterprise, FinTech and Alternative Finance, Fintech International, Fintech Services, Innovation and Resources, Marketplace Lending/P2P, Online Lending, Online Funding Portals, Voices   No comments

LendingClub Reports Strong 2nd Quarter Results, Shares Rise Dramatically

Crowdfund Insider | JD Alois | Jul 28, 2021

lending club rebound - LendingClub Reports Strong 2nd Quarter Results, Shares Rise DramaticallyLendingClub (NYSE:LC), a Fintech that started as a peer-to-peer lender and now operating as a digital bank, has posted strong 2nd quarter results that easily topped expectations. LendingClub finally turned the corner on profitability shredding guidance that had expected a loss. Shares moved considerably higher in after-hours trading during a crowded earnings announcement day.

At the start of 2021, LendingClub completed the acquisition of Radius Bank thus entering the red hot digital banking sector. This quarter is the first earnings round as a nationally chartered digital bank.

According to LendingClub sequential revenue increased by 93%, driven by growth in marketplace lending revenue and increased net interest income from the retained portfolio of consumer loans. Total revenue was $204.4 million, almost double the previous quarter, with net income jumping to $9.4 million – in stark contrast to the $47.1 million loss delivered in Q1.

See:  Why LendingClub’s Acquisition Of Radius Bank Is A Smart Deal

The fact that LendingClub will now be able to hold deposits as a bank means a lower cost of funding for its online lending segment.

LendingClub CEO Scott Sanborn, issued the following statement:

“Our first full quarter operating a digital bank was the most profitable quarter in LendingClub’s history. This is the beginning of a dramatically enhanced earnings trajectory for the business. Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform. Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom-line results.”

LendingClub highlighted the following stats:

  • Marketplace revenue grew 86% sequentially, primarily reflecting 105% growth in origination fees and a 132% increase in gains on loan sales as loans sold through the marketplace doubled.
  • Net interest income grew 148% sequentially to $45.9 million, as the bank’s loan portfolio (excluding PPP loans) grew 27% sequentially, propelled by growth in the consumer loan portfolio of 145% to $795M.
  • Deposits grew to $2.5 billion, helping fund growth in the bank’s loan portfolio.

Updates:

Shares in LendingClub have rocketed higher today jumping by over 55% (as of this moment).

The few analysts that participated in the earnings call congratulated LendingClub on its performance. Earlier today, Wedbush analyst Henry Coffey boosted his price target to $33.50 (from $25), reiterating an outperform call, after calling the results “amazing.”

See:  Fintech Startups Broke Apart Financial Services. Now The Sector Is Rebundling

By becoming a nationally chartered bank, via its acquisition of Radius Bank, LendingClub is now financing its own loans, alongside a growing number of other institutions – including other banks (which now account for more than half of funding including LendingClub Bank).

Management also said there were some unanticipated benefits by becoming a bank as being regulated as a bank helped boost confidence for bank investors. There is a lot of confidence in credit quality.

Continue to the full article --> here

NCFA Jan 2018 resize - LendingClub Reports Strong 2nd Quarter Results, Shares Rise Dramatically The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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July 27, 2021   Entrepreneurs and Start-ups, Equity Crowdfunding, Fintech Services, Fundraising, Investing, Partnerships, Innovation and Resources, Online Funding Portals, Venture funding Best Practices   No comments

FrontFundr secures another round of funding on its own equity crowdfunding platform

Betakit | Meagan Simpson  | Jul 23, 2021

Equity crowdfunding in Canada - FrontFundr secures another round of funding on its own equity crowdfunding platform

FrontFundr has secured $1.78 million CAD, through its own equity crowdfunding platform, as it looks to scale and bring more awareness to the crowdfunding model.

The funding came from 411 investors and brings FrontFundr’s total funding to date to $5.48 million, with the startup having raised all its capital through its own platform.

FrontFundr is using the financing to build on what it calls positive business momentum, as regulators have recently made it easier for startups to raise equity crowdfunding capital.

See:  NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce

Securities regulation in Canada, which equity crowdfunding falls under, is regulated on a provincial and territorial level, with no federal securities body. This has led to a patchwork of rules that change region to region.

Recently, the Canadian Securities Administrators (CSA), the council of all the securities regulators that coordinates and harmonizes regulation, has released new rules making it easier for companies across the country to raise equity crowdfunding capital.

“[There was a] patchwork of different rules, and they weren’t harmonized,” said Peter-Paul Van Hoeken, the founder and CEO of Silver Maple Ventures, the parent company of FrontFundr.

“That certainly has helped to create confusion in the market and definitely has been a challenge to growing the market,” he added. “Now, that’s out of the way.”

FrontFundr was founded in 2013, shortly before crowdfunding investment was legalized federally in Canada in 2015. The startup’s stated mission is to democratize the private sector investment model by offering companies an alternative to venture and private equity investing. To that end, Van Hoeken says FrontFundr has had to spend much of its time marketing the idea of equity crowdfunding to Canadian companies and investors, in addition to fighting for more harmonized regulations.

“We’re missionaries to spread the word around equity crowdfunding, in general,” said Van Hoeken. “We’re the leading platform in Canada, which is great, but that means that you also have to do most of the heavy lifting.”

See:  FFCON21 On-Demand Video: European Crowdfunding Leaders - Lessons & Outlook from the First €1 Billion Raised

“Creating all that awareness has been a huge job for our company in the last five years,” the CEO said. “Not even awareness around FrontFundr, but more like the awareness that, ‘hey, this is an alternative way for you as a company to raise capital, and, as investors, you think you can only invest by Wealthsimple and public stocks, you can also invest in early stage companies from the very beginning.”

“We have seen the immense value and impact that harmonized crowdfunding rules have had in the US and the UK, and so we are really excited to work with Canadian companies and investors to help create the same sort of environment over here,” he said.

Continue to the full article --> here

NCFA Jan 2018 resize - FrontFundr secures another round of funding on its own equity crowdfunding platform The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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June 3, 2021   Entrepreneurs and Start-ups, FinTech and Alternative Finance, Fundraising, Investing, Partnerships, Innovation and Resources, Online Funding Portals, Research, Venture funding Best Practices   No comments

Find the right VCs instantly

Stephnass | June 2021

OpenVC - Find the right VCs instantly

What is OpenVC

OpenVC is an open resource (think Wikipedia) where VCs can claim their investment thesis. By doing so, VCs receive less spam from clueless founders. They also drive highly-qualified deal flow. In return, it makes life easier for founders (yes, it matters).

See:  BIS Report: Inside the Regulatory Sandbox: Effects on Fintech Funding

2,200+ VCs and counting:  Raising funds is a numbers game. OpenVC gathers 2,200+ funds in one place, ranging from regional boutiques to global names and corporate funds.

Searchable by thesis:  Targeting is key. On OpenVC, you can search funds by investment criteria such as geography, cheque size, maturity, and many more.

Radically free and open:  Anybody can edit a fund, anybody can add a fund. No login is required and it's free forever. You can even download the whole data set if you want.

Continue to the OpenVC --> here

 

NCFA Jan 2018 resize - Find the right VCs instantly The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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March 26, 2021   Blockchain, Crypto, Digital Assets, Tokens, Enterprise, Entrepreneurs and Start-ups, Equity Crowdfunding, FinTech and Alternative Finance, Fintech International, Fintech Services, Fundraising, Investing, Partnerships, Innovation and Resources, Online Funding Portals, Press Releases, Venture funding Best Practices, Voices   No comments

Republic Announces $36M Series A to Democratize Access to Investing for Everyone

Republic | Business Wire | March 17, 2021

republic investing in startups - Republic Announces $36M Series A to Democratize Access to Investing for Everyone

NEW YORK--(BUSINESS WIRE)--Republic, a leading investment platform, announced today it has completed the initial closing of its $36M Series A fundraising. The round was led by Galaxy Interactive with participation by Tribe Capital, Motley Fool Ventures, and Broadhaven Ventures. In addition, Prosus Ventures (formerly Naspers Ventures) made a strategic investment in Republic through a purchase of Republic Notes, a novel digital security. Founded in 2016, Republic and its subsidiaries have raised more than $70 million to fund their ventures.

Republic was founded on the principle that sought-after investment opportunities should not be limited to small, closed networks of investors, and that people should be able to invest in the future they believe in. On the Republic platform, anyone can invest across startups, real estate, crypto, gaming, and small businesses. Republic has over 1 million members, who to date have invested more than $300 million in offerings under Regulation Crowdfunding (Reg CF), Reg A and Reg D. Republic provides curated deals for investors of all experience levels and interests, while empowering founders with access to a diverse and engaged investor base.

See:  Early-stage Investing – The Public gets a Seat at the Table

Republic is a leader in facilitating crowdfunding campaigns for startups and SMBs raising under Reg CF, which allows non-accredited investors to participate in private funding rounds. Earlier this week, the SEC raised the cap for how much can be raised through Reg CF from $1.07 million to $5 million per annual period, enabling founders to raise up to 5x more capital through crowdfunding, while unlocking unprecedented access to deal flow for Republic’s investor community. Republic quickly became the first investment platform to facilitate a $5m Reg CF offering under the new rules. In addition to serving retail investors, Republic recently launched Republic Deal Room, offering investment opportunities for institutional and accredited investors.

One of the first mainstream fintech firms to embrace cryptocurrencies, Republic created the Republic Note, a profit-sharing digital security meant to align the incentives of the community with activity on the Republic platform. Prosus Ventures —the venture arm of Prosus, one of the world’s largest technology investors— is backing the Republic Note, which represents Prosus Ventures’ first-ever crypto digital asset investment.

“Prosus Ventures has a strong history of being an early investor in businesses that target big societal challenges, and Republic has created a platform that has the potential to break down the systemic barriers that exist in the funding process,” said Banafsheh Fathieh, Head of Americas Investments at Prosus Ventures. “Republic’s continued growth will enable more entrepreneurs from underrepresented groups to raise funds beyond the usual gatekeepers, and investors will be able to help businesses they are passionate about when they need it most.”

“We are at the early stages of a multi-decade super-cycle of retail empowerment. Republic is at the forefront of this trend, and there is no team that better understands the intricate web of consumer tech, finance, and regulation needed to bring real innovation to the private investment space. We are thrilled to partner with Ken and team, and look forward to the amazing opportunities they will enable in the years to come,” added Richard Kim, partner at Galaxy Interactive, Republic’s lead investor.

See:  Retail investors are becoming more than shareholders

Kristine Harjes, Investment Officer at Motley Fool Ventures, also offered her perspective on the investment, “The Motley Fool has long championed the individual investor, and we feel deeply aligned with Republic’s mission to increase access to once-exclusive private investment opportunities. Motley Fool Ventures is thrilled to support Republic’s efforts to revolutionize the alternative investment landscape through its best-in-class technology and community.”

Republic has recently expanded its reach into new markets through strategic acquisitions, including Fig, a leading video game publisher backed by Spark Capital and Greycroft, Compound, a real estate investment platform backed by NEA, and NextSeed, a crowdfunding platform for local businesses. Earlier this month, Republic announced that it is expanding its crypto offerings and will be hosting digital asset sales on the platform, allowing blockchain projects to sell native digital assets to both U.S. and non-U.S. participants.

Republic CEO Kendrick Nguyen has played a key role in creating more equitable funding and investment opportunities for founders and retail investors alike.

“We have entered a new era of investing, one in which all stakeholders of a business can become shareholders. The support of marquee institutional investors in Republic’s funding round is indicative of the vast potential of our mission: to enable investors everywhere to align their passion with profit,” states Nguyen, who penned a personal letter for the Republic blog about what the future holds for Republic. With this new round of investment, Republic will continue to work towards its mission of democratizing access to investing and giving people the power to invest in the future they believe in.

About Republic

Republic is a leading investment platform that provides access to startup, real estate, crypto, and gaming investments for both retail and accredited investors. Republic has facilitated over $300 million in investments by our global community of over one million members. For more information, visit www.republic.co.

 

NCFA Jan 2018 resize - Republic Announces $36M Series A to Democratize Access to Investing for Everyone The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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February 2, 2021   Enterprise, Entrepreneurs and Start-ups, Equity Crowdfunding, FinTech and Alternative Finance, Fintech International, Fundraising, Investing, Partnerships, Innovation and Resources, Online Funding Campaigns, Online Funding Portals, Research, Venture funding Best Practices, Voices   No comments

CCA 2020 RegCF Year in Review Report (NCFA 20% Discount)

Crowdfund Capital Advisors | Sherwood Neiss | Feb 2, 2021

RegCF Crowdfunding 2020 year in review - CCA 2020 RegCF Year in Review Report (NCFA 20% Discount)

2020 Year in Review

(Purchase with special NCFA link below and receive 20% DISCOUNT)

2020 was a year of crisis for the country and the financial markets, but it was also the year that fully demonstrated that online finance delivers capital to diverse SMEs, across the country, while providing robust investor protections. Regulation Crowdfunding:

  •  Democratizes access to capital for women and minority entrepreneurs:
    • According to a January 2021 survey of SMEs that successfully raised the maximum $1M from Regulation Crowdfunding:
      • 45.5% had female founders
      • 40.9% had minority founders
      • 100% said that they would have raised $5M if that amount would have been available to them.
    • As a point of comparison, according to an April, 2020 Securities and Exchange Commission Report (https://www.sec.gov/spotlight/sbcfac/sbcfac-learn-from-data.pdf)
        • Black, latinx and middle-eastern founders  received just  5% of all VC investment
        • Women founders received just 13% of VC investments
  • Distributes capital to local economies across the United States despite geographical biases from the Venture Capital industry.
  • Provides local investors a legal structure to support the local entrepreneurs they believe in, with a limited amount of risk capital.
  • And over the last 4 years, with appropriate investor protections, these investments have been made with no reported fraud.

See:  RegCF Online Investment: Highest Monthly Activity in July; Small Firms Most Affected by COVID-19 Find Ready Investors and Capital

No other part of this market has such complete, longitudinal data that can deliver easy to use and comprehensive transparency to the Securities and Exchange Commission and FINRA as they conduct their oversight of the private capital markets.

Regulation Crowdfunding was one of the most bi-partisan pieces of legislation in the year it passed. It allows any startup or small business to raise up to $1.07M online from their customers, friends, family and followers. Key points about the data and this report:

  • The data in this report consists of over 125 data points collected from disclosure documents from offerings that are filed with the SEC and listed on Online Investment Platforms.
  • Each day this data is aggregated from over 50 Online Investment Platforms that are registered with the SEC.
  • The data is cleaned, normalized and transmitted to Bloomberg daily for market analysis.
  • We look at data from exempt offerings that take place under Regulation Crowdfunding and parallel Regulation Crowdfunding/506c (Accredited Investor crowdfunding).

The data in this report demonstrates that the industry has matured to a point where the market is ready to utilize the regulatory modifications that are scheduled to go into effect in March 2021. Over the last 4 years, investors, platforms and issuers appear to have followed the law and have developed scalable operational systems as well as transparency and accountability within the model. We believe that 2021 will be a year of growth and opportunity for the Online Investment Industry for the following reasons:

  1. Local economies are struggling due to the global pandemic and access to traditional capital is still a top challenge, if not the top challenge, for small businesses.
  2. Stimulus capital, if it in fact reaches the smallest businesses and economies across the nation, represents a bandaid and entrepreneurs need access to more sustainable capital which online investment/community finance provides.
  3. Market awareness of the industry has reached a tipping point where over 90% of Congressional Districts across the United States have had at least one Regulation Crowdfunding offering.
  4. There has been no reported fraud or systemic failure in the model.
  5. As more fraud continues to pervade the public markets, and distrust in them increases, investors are looking to diversify modest amounts of capital into local businesses/entrepreneurs they believe in.
  6. The SEC voted on and approved changes that go into effect in March 2021 that would increase the maximum issuers can raise from $1.07M to $5M. This additional “head room” in funding availability will attract more issuers and more mature/larger issuers that are able to raise and utilize up to $5M in capital.

See:  Biden Administration to Review and (possibly Delay) Investment Crowdfunding Improvements

A few of the key highlights include:

  • Offerings by all types of businesses in all 50 states and Puerto Rico  successfully raised more capital.
  • Offerings were up 61% year over year.
  • The number of new Issuers (SMEs) of all sizes increased 58% and raised more in 2020 than any prior year
  • Local investors are deploying rational amounts of money into local businesses in areas outside of Venture Capital
  • Regulation crowdfunding investments continues to grow at a compound annual growth rate of 88% with high unrealized returns 
  • Demographics: 1,085 Cities, 447 industries, and 750,000 investors have engaged in Regulation Crowdfunding

NCFA 20% Discount:  Sale price $200 USD (normally $250)

Purchase the 81 page PDF report on RegCF 2020 in Review with NCFA Discount --> Here

NCFA Jan 2018 resize - CCA 2020 RegCF Year in Review Report (NCFA 20% Discount) The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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