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Reg CF: Investment Crowdfunding Tops $1 Billion on Heals of Funding Cap Increase

Crowdfund Insider | | Oct 26, 2021

RegCF passes US1B - Reg CF: Investment Crowdfunding Tops $1 Billion on Heals of Funding Cap IncreaseRegulation Crowdfunding (Reg CF) has topped $1 billion – five years after the securities exemption became actionable for issuers in need of growth capital.

According to Crowdfund Capital Advisors (CCA), 1.2+ million investors have backed over 4500 companies to achieve this milestone.

The third quarter of 2021 was said to be the best quarter ever with approximately $148 million committed to issuers raising capital on funding portals or regulated broker dealers.

See:  Reg CF Update: Interview with Sherwood Neiss on Investment Crowdfunding

This amount was 93% greater than the same quarter last year and 12.5% over Q2. The third quarter broke the record of number of offerings pegged at around 400 securities sales.

Year to date as of Q3, approximately $409 million has been raised with 1,177 individual offerings.

Software was the most popular industry to raise money using the exemption.

The top five platforms during Q3 dominated the sector of online capital formation accounting for around 88% of investment activity.

CCA noted that Reg CF activity helped to create more than 17,000 jobs during the quarter.

See: 

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

Canadian securities regulators adopt new nationally harmonized start-up crowdfunding rules

This sector of crowdfunding received a significant boost in March of 2021 when the Securities and Exchange Commission made several material changes to the securities exemption. Perhaps the most important change was boosting the funding cap from $1.07 million to $5 million thus making the exemption more viable for a broader range of early-stage firms.

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NCFA Jan 2018 resize - Reg CF: Investment Crowdfunding Tops $1 Billion on Heals of Funding Cap Increase 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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