We are excited to announce the CfPA Industry Awards Ceremony, which will take place during the CfPA Regulated Investment Crowdfunding Summit on October 23, 2024, in Washington, D.C. This prestigious event will celebrate the brightest minds and most innovative projects in the regulated investment crowdfunding industry.

Join us as we honor excellence across five key award categories:

1. The Rocket Launch Award: From Zero to $4.5 Million (in 180 Days or Less) – Celebrating an explosive Reg CF debut that demonstrates rapid success and momentum.

2. The Cool Innovator Award: Honoring groundbreaking first-of-a-kind (FOAK) or eco-friendly projects that set a new standard for sustainability and a greener planet (Reg CF or Reg A).

3. The Trailblazer Award: Recognizing pioneers in crowdfunding infrastructure development who are paving the way for the future of Reg CF and Reg A.

4. The CfPA Pay it Forward Award: Celebrating a CfPA member or partner who embodies the spirit of generosity and leadershi

Infrastructure development in the United States, particularly in climate tech sectors like wind farms, solar plants, waste-to-energy facilities, or other First of a Kind (FOAK) projects, frequently faces substantial local opposition. This resistance, commonly referred to as "Not In My Backyard" (NIMBY), is driven by concerns over environmental impact, property values, and disruptions to daily life. The resulting delays not only stall project timelines but also threaten the U.S.'s ability to meet crucial climate goals. Slowing the growth of renewable energy projects undermines efforts to reduce carbon emissions and transition to a sustainable energy system.

However, countries like Germany and Denmark have demonstrated an effective solution: community ownership. By allowing local residents to invest directly in infrastructure projects, these nations have transformed NIMBY-driven opposition into widespread support. In the U.S., regulated investment crowdfunding (Reg CF and Reg A) presents...more

As a venue for industry networking, the Crowdfunding Professional Association (CfPA) occasionally highlights the participation or biography of our association members. CfPA membership is designed to be inclusive and open to individuals and organizations sharing a professional interest in the field of Regulated Investment Crowdfunding.

Interview With Paul Lovejoy

CfPA: Can you tell us a little about your background and your interest in the field of regulated investment crowdfunding? 

Paul: I was a defrauded investor in 2008 and became deeply concerned about concentrations of wealth and too-big-to-fail banks. Seeking answers, I volunteered for the Obama campaign in Florida and became enmeshed in politics to try and understand how we got too big to fail banks and a financial crisis. However, by 2016 blame, gridlock and lobbyists eventually drove me out of engaging in politics any further.

The MEMO below was posted for the industry by CfPA 2024 President, Brian Christie  

MEMORANDUM

TO: All Industry Participants in the Regulated Investment Crowdfunding Industry 

CC: CfPA Board of Directors 

FROM: Brian Christie, President (2024), Crowdfunding Professional Association, 501(c)(6)

DATE: February 16, 2024  

SUBJECT:  CfPA Recommended Best Practice: “Regulated Investment Crowdfunding”  

______________________________________________________________________

Dear Industry Colleague:

I am writing on behalf of the Crowdfunding Professional Association (CfPA) to inform you of an industry Recommended Best Practice that was adopted and approved by the CfPA Board of Directors on January 8th, 2024.

The CfPA board recommends that all industry stakeholders hereby use the term 'Regulated Investment Crowdfunding' as an umbrella term and when referring to transactions, activities, and operations that may involve non-accredited investors a...more

In the dynamic realm of crowdfunding, different models have emerged to cater to different fundraising needs. However, a common pitfall lies in the tendency to conflate "donations crowdfunding," "rewards crowdfunding," and "regulated investment crowdfunding." While these models share a common term - “crowdfunding” - they are very different and serve distinct purposes. 

Donations Crowdfunding is typified by platforms like GoFundMe and involves raising funds for personal causes without an obligation to provide a product. Someone has a hospital bill and they appeal to donors. “Donors” not “Investors.” In other words, there is not the expectation or obligation of a “return” of any kind with donations crowdfunding. 

Rewards Crowdfunding is a popular model exemplified by platforms like Kickstarter and Indiegogo and it allows creators to pre-sell a product or service to backers. “Backers” not “Investors.” In other words, contributors or backers receive tangible rewards in return for ...more

Cost of Investor Acquistion

Creating institutional capital investment pools with funding portals is hugely important. Honeycomb Credit has trailblazed that with a foundation. You can go to pension funds, banks, insurance companies, credit unions, etc with these kinds of proposals. Point to HoneyComb's success story, differentiate your portal.

Side-note: would love to start seeing partnerships between niche portals.

If you aren't ready to do that yet, and are starting off with founders in your direct network, I would fill your relevant social media channels (that you send to people) with accessible and engaging demos of your product from the investor's perspective. Of course, content for business owners is important too... but think about it this way: fundraising businesses will be sending your social media content to their investors as to explain how the process is going to go.

Educational content on why your niche and portal serve a critical need. Explain to investors, why their investm...more

Dear colleagues at Crowdfunding Professional Association and beyond. We all love saying that the industry is doing great.

Math says "that's bs; CF industry is broke and dealflow is the problem." I am using funding portal data because transparency is forced upon these intermediaries.

Please don't shoot the messenger. I would like to be proven otherwise.

There are 70,000 startups in the United States within 33,000,000 small businesses. How many active Regulation Crowdfunding deals are there right now? 450.

Let's say that the average salary for a portal employee is $75,000 ($6 250 per month). Sounds like an OK living in the U.S. (unless you are in New York, San Francisco, Los Angeles, etc).

I went onto each of their LinkedIn pages and counted the number of employees. I assumed - rather generously - on average, only 50% of these "employees" are paid. The rest are advisors, investors, partners, etc.

I tried to count how much money each of the platforms will have left after receivi...more