CCA Launches Regulation Crowdfunding Indices
Check in daily to see what is happening in Debt and Equity Crowdfunding in the USA
It has been 73 days since Regulation Crowdfunding kicked off and the data is starting to pour in. Regulation Crowdfunding allows any American startup or SME to raise up to $1M from their friends, family and followers on debt and equity crowdfunding platforms that are registered with the Securities and Exchange Commission (SEC).
CCA is pleased to announce the launch of the CCA Regulation Crowdfunding Indices in conjunction with Crowdnetic. We have created this resource page that is being updated daily as a place that the industry can use as a snapshot on the growth of this market.
Initial data is revealing just what we had expected:
- A slow logical progression of offerings and a rational approach by investors. This is no wild west.
- A couple of campaigns have already hit their funding targets and closed. This shows the speed and efficiency of capital formation that can be experienced by solid campaigns.
- One campaign, Beta Bionics that makes a wearable medical device that autonomously manages blood sugar levels in people with diabetes already hit the maximum $1M funding cap from 780 investors. This provides evidence that there is appetite for increasing the maximum raise from $1M to $5M as per the recently passedFix Crowdfunding Act.
- There have been 70 companies that have registered their offerings with the SEC on 14 portals. Again showing that a regulated process brings serious issuers and platforms to the industry and investors.
- These companies have a total of 271 current employees signaling our hypothesis that crowdfunding may be a job creator.
- Looking at the distribution of capital commitments ($) we see that California is leading the pack in both number of issuances and total capital committed.
On this page you will find the following charts:
Total Amount of Commitments by State
Total Number of Issuances by State
Number of Offerings by Portal
The early story is “slow and steady wins the race.” Regulation Crowdfunding offerings are occurring exactly as we predicted, a rational and measured pace. This is very similar to what happened when Title II of the JOBS act went live in 2013. It is important to know that this is a market with NEW investors in a NEW type of investment, in a NEW market with companies that are NEW to being able to raise money. All of that NEW means that this market will take some time to develop. What we are excited to see is we are seeing quality platforms seeking quality deal flow to offer to customers.
As interesting data develops we will keep you updated via our podcasts, RABBIT Reports and our email newsletters.
If you have any questions, feel free to email us. If you would like to sign up for our soon to be launched analyst report that digs deeper into the data click here to register.