Regulation Crowdfunding Surpasses $100,000,000 in Capital Commitments – Signaling an Industry that is Here to Stay and Reaching $1 Billion in the next 5 years

Share

Crowdfund Capital Advisors | Sherwood Neiss | Jan 25, 2018

According to Crowdfund Capital Advisors, today is a historic day for online finance and Regulation Crowdfunding in particular. The industry passed a major milestone surpassing over $100 million in capital commitments.

“We’ve been anxiously waiting for this milestone,” said Sherwood Neiss, Principal at Crowdfund Capital Advisors. “It proves that the model is working, capital is flowing to those companies that need it most and jobs are being created. There’s no doubt, based on the rational growth of the industry since May 2016 that Regulation Crowdfunding and online finance are here to stay and will play a significant role in funding startups and small businesses in the future.”

“Regulation Crowdfunding brings a digital footprint to all offerings for the first time in 80 years. The  transparency this provides regulators and investors sheds sunlight on what was prior an opaque process.  The data and dollars show that the industry is working,” said Jason Best, Principal at Crowdfund Capital Advisors.

“We expect the industry to really begin to scale at this point of inflection. Our model estimates that over $1 billion will be funded to startups and small businesses within the next 5 years and over 25,000 jobs will be created.”

See:  The 2017 State of Regulation Crowdfunding: US Securities-based Crowdfunding under Title III of the JOBS Act

Karen Kerrigan, CEO of the Small Business and Entrepreneurship Council said, “It is great to see the funding bottleneck being addressed for small businesses, capital flowing around the country, and jobs being created in cities and regions that need it most. However, this is the tip of the iceberg. There is more that we can do. Bringing more attention to Regulation Crowdfunding as well as addressing some of the sticking points in the law will help further expand capital access and opportunity for entrepreneurs in every corner of the country.”

Key insights from CCLEAR as of today are:

  • $100,072,759 in capital commitments (95% went to successful campaigns)
  • 731 campaigns launched
  • 100,901 investor commitments
  • Average is $992 per investment (up from $750 when the industry started May 16, 2016)
  • Average raise is $360,691 (up from $250,000 when the industry started)
  • Total jobs supported is 3,608 to date
  • It took 410 days for the industry to raise the first $50M and 209 days (50% less time) for the industry to raise the next $50M
  • Companies in 45 states filed to raise capital

Crowdfund Capital Advisors collects data from companies raising funds online via parts of the JOBS Act and in particular Regulation Crowdfunding. The database, known as CCLEAR publishes a daily dashboard of industry activity and is used by the media, educators, industry stakeholders, government organizations, and multilateral organizations. The data visualization tool provides a clear understanding as to where capital is flowing by region, industry and even gender. It’s major benefit allows for transparency into a segment of the private capital markets that has been operating in the shadows.

For more info visit:  Crowdfund Capital Advisors

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: ncfacanada.org

Share