What does it mean to “invest”?

Jenny Kassan Jenny Kassan
Posted at May 4


When you think of the word “invest,” do you picture your money going into a company to help it grow? For example, if you go to your Schwab account and purchase some Apple stock, you may say to yourself – well, I know I’m sending my money out of my community to Silicon Valley, but at least I am contributing to an innovative U.S. company’s success?

Well, that is actually not what you are doing at all!

You are sending your money out of the community, but not to Apple!

The money you invest in the public markets isn’t actually producing any economic value (except for the finance industry).

When you buy a share of Apple or Amazon on the stock market, your money doesn’t go to those companies. It goes to another investor who wants to cash out. You’re buying a piece of paper (well, a digital record) from someone else—not helping a business grow.

In fact, less than 1% of the money in the stock market goes directly to companies. The other 99% is just people trading with each other, trying to buy lo
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Registration now open for the 2025 Regulated Investment Crowdfunding Summit!

CfPA 2025 Summit
Posted at Apr 29

Registration is NOW OPEN!
Join us for the 2025 Regulated Investment Crowdfunding Summit
October 21–22, 2025
Washington, DC

This is the must-attend event for anyone in the Reg CF and Reg A ecosystem.

Connect with industry leaders, policymakers, regulators, and innovators from across the public and private sectors. Hear from top thought leaders driving the future of regulated investment crowdfunding - and gain insights you won’t find anywhere else.

From policy to practice, this summit builds on the growing momentum of a rapidly evolving industry.

Register now to get the early bird rate and to secure your spot.

More details coming soon—but don’t wait!

Day 1 (10/21): Advocacy Visits - on the Hill and with Regulators

Day 2 (10/22): Conference  Summit

National Union Building

918 F St NW, Washington, DC 20004

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Categories: Reg A+  |  Reg CF  |  Regulations & Compliance
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What is Community Investing and Why is it Urgently Needed Now?

Jenny Kassan Jenny Kassan
Posted at Apr 25

The daily news is dominated by gloomy headlines about global financial markets. What we don’t hear about is a small but growing movement called community investing. It is not new. In fact, it pre-dates big banks and stock exchanges. But it is still mostly below the radar of mainstream media. What exactly is community investing—and why is it so urgently needed now?

Defining Community Investing

Community investing is when everyday people—not just wealthy individual and institutional  investors—get the chance to invest in the businesses, projects, and leaders they believe in. It’s not charity. It’s not crowdfunding perks. It’s actual investment with the potential for financial returns.

And it’s legal. Yes, it is necessary to choose a compliance strategy under state and federal securities law which requires that the entity raising funds jump through some legal hoops, but legal developments in the past decade are providing more options and tools.

Unlike mainstream investing in public mark
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CfPA Presents Case for Nuanced Reg CF Reform at SEC Small Business Forum

Brian Belley Brian Belley
Posted at Apr 14

On April 10, 2025, the Crowdfunding Professional Association (CfPA) had a significant opportunity to advocate for crucial regulatory improvements at the SEC’s 44th Annual Small Business Forum in Washington, D.C. Representing the CfPA on the “Out of the Blocks: Strategies and Trends in Early-Stage Capital Raising” panel, I presented key insights and policy recommendations aimed at enhancing Regulation Crowdfunding (Reg CF) for the entire ecosystem – issuers, investors, intermediaries, and service providers alike.

The State of Reg CF and the Need for Evolution

Since its 2016 launch, Regulation Crowdfunding has undeniably opened doors, enabling over 8,700 campaigns to raise more than $2.2 billion from millions of investors. It's a testament to the power of democratizing capital formation. However, as the industry matures, it's clear the current framework requires refinement to unlock its full potential.

As the leading association representing professio...more

Categories: Reg A+  |  Reg CF  |  Regulations & Compliance
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A Call to Modernize Crowdfunding Laws -- and Why We Need You to Join the Movement!

Crowdfunding Professional Association (CfPA)
Posted at Apr 14

At the Crowdfunding Professional Association (CfPA), we are proud to represent the voice of the regulated investment crowdfunding industry—a sector that has become a powerful engine for innovation, entrepreneurship, and inclusive economic growth across the United States.

In response to the House Financial Services Committee’s recent request for feedback on capital formation, we submitted a comprehensive letter outlining key reforms urgently needed to modernize Regulation Crowdfunding (Reg CF) and related exemptions. These reforms are critical to ensure that crowdfunding continues to thrive as a competitive, accessible, and transformative force in U.S. capital markets.

Since Reg CF was introduced through the JOBS Act of 2012, it has grown from a bold experiment into a proven success:

  • Over 8,500 securities offerings

  • $2.2 billion raised from more than 2 million Americans

  • $7.5 billion in economic impact

  • Nearly 400,000 jobs created

  • $80 billion in estim

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Categories: Reg A+  |  Reg CF  |  Regulations & Compliance  |  Tax Issues
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Navigating a Fair Future: Crypto, Crowdfunding, and Regulatory Clarity?

Brian Christie Brian Christie
Posted at Feb 6

In a statement published February 4th titled “The Journey Begins,” SEC Commissioner Hester Peirce, as the newly appointed SEC Crypto Task Force leader, compares the SEC’s past crypto regulation to a chaotic road trip and expresses her desire to create a clearer, more practical regulatory framework.   

She also asserts that the Commission will uphold its authority and enforce regulations without being pressured or overridden. From the statement:

“Third, the Task Force wants to travel to a destination where people have great freedom to experiment and build interesting things, and which will not be a haven for fraudsters. One of the reasons the U.S. capital markets are so robust, efficient, and effective is that we have rules designed to protect investors and the integrity of the marketplace, and we enforce those rules. We do not tolerate liars, cheaters, and scammers.”

“Where Congress has directed the Commission to impose requirements on ...more

Categories: Blockchain & Crypto  |  Regulations & Compliance
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2025 Regulated Investment Crowdfunding Industry Outlook Survey

Sherwood Neiss Sherwood Neiss
Posted at Jan 17

For the first time ever, we're thrilled to announce that our 2025 State of the Industry Report will be available for free,! This 150-page report provides unparalleled insights into the latest trends, challenges, and opportunities in investment crowdfunding.

Here’s the best part: Survey participants will be the first to receive this comprehensive report—before anyone else.

Your voice matters. By completing our quick survey, you’ll:

  • Contribute to shaping the future of investment crowdfunding.

  • Gain exclusive early access to the 2025 report.

  • Help us uncover actionable insights for the industry.

Don’t miss out on this opportunity to make an impact and receive the industry’s most valuable resource for free.

Take the Survey Now

All responses are confidential and reported in aggregate. The survey takes less than 5 minutes to complete.

Thank you for helping shape the future of crowdfunding!

The survey deadline is January 25, 2025.

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Targeting Resources to Unleash Market Prosperity (TRUMP) Jobs Act

Crowdfunding Professional Association (CfPA)
Posted at Jan 13

Key provisions of the Tax Cuts and Jobs Act (TCJA), signed into law by former President Donald Trump in December 2017 are set to expire at the end of 2025 unless extended or modified by Congress. A new tax bill is likely to be enacted.

Background

The passage of the bipartisan JOBS Act ushered in Regulation Crowdfunding (Reg CF) and since May of 2016, over 8,500 companies or investment campaigns have raised over $2.2B in capital from more than 2 million ordinary Americans – typically in amounts averaging $1,400 per investment. Only US companies can raise funds using Regulation Crowdfunding and these companies demonstrate remarkable resilience and durability, with failure rates below 10% - far lower than the 75% failure rate of VC-backed startups and the 50% failure rate for small businesses (as reported by BLS over a five-year period). Over $7.5B in economic activity has been generated which has created or supported over 400,000 jobs. Successfully funded companies across all 50...more

Categories: Tax Issues
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