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Reg CF in the U.S. Created 300,000 Jobs and Boon for Local Economies, Women. and Minorities Seeking Funding

Crowdfund Insider | | Sep 29, 2022

RegCF US update - Reg CF in the U.S. Created 300,000 Jobs and Boon for Local Economies, Women. and Minorities Seeking FundingIn 2021, the SEC took an important step in helping the ecosystem by increasing Reg CF from an anemic funding cap of $1.07 million to $5 million. Industry insiders believe the cap should actually be more than that – at least $10 million, or higher. The JOBS Act 4.0 seeks to improve upon Reg CF alongside other capitol formation policy goals. Hopefully, Congress will bump #J4 to the top of the legislative list, by now, the benefits should be clear.

See:  JOBS Act of 2012: Ten Years of Legalized Investment Crowdfunding

This past week, the Association of Online Investment Platforms (AOIP) visited with multiple House and Senate offices, along with the Securities and Exchange Commission, to share the success of the exemption, alongside the other exemptions that help companies raise money online.

Crowdfund Capital Advisors (CCA) was helpful in providing an update on Reg CF. Sherwood “Woodie” Neiss, Principal at CCA, stated that Washington, DC needs to be reminded of the success.  Some key points provided by CCA, include:

  • Companies that have raised funds online have pumped over $3.4 billion into local economies by purchasing goods and services mainly from local vendors.
  • Another interesting data point is that women and minority founders are seeing a higher success rate (67%) than white male founders (48%).
  • The economic value of successful issuers is scaling and will lead to some sizable returns for investors
  • Companies are receiving funding all across the USA, in more than 1,500 cities, and in over 500 different industries
  • The success rate of issuers raising funds online is greater than other forms of financing which is why women and minorities are turning to investment crowdfunding as their preferred method for capital formation
  • Over 300,000 jobs have been created or supported as a direct result of investment crowdfunding proving it can be a jobs engine and live up to its namesake, the JOBS Act.

See:  Fintech Fridays EP57: 10 Years of Investment Crowdfunding: Past, Present & Future Since the JOBS Act

“As we enter this uncertain period for our economy, we are reminded that the key to keeping local economies strong is supporting local businesses.These local businesses include small/medium businesses as well as pre-IPO startups that aren’t heading to Silicon Valley anymore. As the capital markets recoil, investment crowdfunding will play a larger role in supporting these businesses and our overall economy.”  Sherwood Neiss

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NCFA Jan 2018 resize - Reg CF in the U.S. Created 300,000 Jobs and Boon for Local Economies, Women. and Minorities Seeking FundingThe 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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