PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Regulation Crowdfunding Surpasses $100,000,000 in Capital Commitments

By at 25 January, 2018, 1:00 pm

Heading Towards $1 Billion in the Next 5 years

Washington, D.C. – 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.”

“Now that we have this transparency and the data and dollars to show that it is working,” said Jason Best, Principal at Crowdfund Capital Advisors, “we expect the industry to really begin to scale. We expect 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.”

Karen Kerrigan, President & CEO of the Small Business and Entrepreneurship Council said, “It is great to see the funding bottleneck being addressed for small businesses, capital flowing across 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 – a daily dashboard of Regulation Crowdfunding activity – as of today are:

•  $100,072,759 in capital commitments

•  731 campaigns

•  100,901 investors

•  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 break $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.

Crowdfund Capital Advisors recently published the 2017 State of Regulation Crowdfunding for the Securities and Exchange Commission (SEC). A copy of it can be found here.

CONTACT:

Sherwood Neiss, Crowdfund Capital Advisors

sherwood@theccagroup.com

202-247-7182

Karen Kerrigan, SBE Council

kkerrigan@sbecouncil.org

703-242-5840

 

About Crowdfund Capital Advisors

Crowdfund Capital Advisors (CCA) delivers strategic insights to government agencies, financial institutions, regulators and multilateral organizations seeking to both create and implement innovative strategies to utilize crowdfund investing (CFI) technologies to drive innovation, job creation and entrepreneurship. We also study and invest in the emerging ecosystem of crowdfunding and the new solutions being created that will impact the broader private capital markets.  Sherwood Neiss and Jason Best are long-time members of SBE Council, and led the crowdfund investing movement in the United States, lobbied for the passage of equity crowdfunding, and wrote the framework signed into law by the President in 2012. To learn more, please visit: www.crowdfundcapitaladvisors.com.

About SBE Council

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. The passage of equity crowdfunding, as enacted as part of the Jumpstart Our Businesses Startup Act (JOBS Act) was a key policy initiative advocated by the organization. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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