Crowdfund Capital Advisors (CCA), a research and advisory group tracking online capital formation under Regulation Crowdfunding (Reg CF) in the US, is reporting that since the industry launched over $1.1 billion has been invested for firms issuing securities under the exemption.
Some other highlights from the article:
CCA shared some of the headline data points for Reg CF, including:
Investments into startups and small businesses up 140% over 2020, shattering last year’s record, exceeding the projection of $500 million invested, and leading CCA’s Online Investment Index to record highs.
Total financing in 2021 exceeds all investments from 2016 through 2020.
More than 540,000 investors participated in over 1,500 offerings. More than 2019 and 2020 combined.
The average raise across the industry is an all-time high of $450,000 from a low of $200,000 in 2018 as the number of jobs supported/created among these issuers reaches 100,000.
In March, SEC updated the maximum issuers can raise from $1 million to $5 million, the industry then surpasses $1B in funded capital in October.
Follow-on crowdfunding rounds were raised by over 500 issuers.
The market value of crowdfunded companies jumped to $33 billion as median valuations hit record highs.
68.4% of offerings were successful and closed within 8 months, which is higher and faster than “traditional” VC round timelines. The average closing time tightened in 2021 to 7 months.
VCs & Y-Combinators jump into the space both co-investing and syndicating offerings providing further validation.
The number of $1 million+ offerings hit record highs with several $5 milllion+ rounds proving Reg CF a viable “Silicon Valley-sized Seed round.” Issuers used 43 intermediaries to raise crowdfunding facilitated capital, up 10% over 2020. Wefunder, StartEngine, Republic, and SeedInvest, accounted for over 80% of all the funding.