INFOGRAPHIC: State of Investment Crowdfunding

By at 5 October, 2022, 1:48 pm

By Sherwood Neiss –

“Its always good to be the bearer of good news on Capitol Hill,” said SBE Council’s Karen Kerrigan, pictured here with Republic’s Max Rich.
“Investment crowdfunding is making a big difference for startups and small businesses” and she notes there is solid bipartisan interest in policy fixes to “supercharge its effect.” Read the Crowdfund Insider article here about the joint AOIP-SBE Council advocacy day.

On September 28-29, the Association of Online Investment Platforms (AOIP) partnered with SBE Council for a series of meetings on Capitol Hill and at the Securities and Exchange Commission (SEC) to provide an update on the success and progress of investment crowdfunding, and to review policy fixes that would enhance this method of raising capital. Sherwood Neiss, principal Crowdfund Capital Advisors, helped to support this important effort by creating a snapshot of Regulated Crowdfunding (Reg CF) and highlighting the visit in his communications with clients and various networks:

This week our friends were on Capitol Hill in Washington, DC to talk Investment Crowdfunding. We created this infographic on the State of Regulated Crowdfunding (which allows non-accredited investors to invest in small businesses and startups) to help in their education and lobbying efforts. It gives you a great snapshot of the industry to date.

Key points from the infographic:

-Investment crowdfunding is working efficiently and living up to its promise

-There is a constant flow of risk capital available for pre-IPO startups and small businesses

-The economic value of successful issuers is scaling and will lead to some sizable returns for investors

-Companies are receiving funding all across the USA, in more than 1,500 cities, and in over 500 different industries

-The success rate of issuers raising funds online is greater than other forms of financing which Is why women and minorities are turning to investment crowdfunding as their preferred method for capital formation

-Over 300,000 jobs have been created or supported as a direct result of investment crowdfunding proving it can be a jobs engine and live up to its namesake, the JOBS Act.

Companies that have raised funds online have pumped over $3.4B into local economies by purchasing goods and services mainly from local vendors

-These are tax paying businesses through payroll, income and purchases.

“As we enter this uncertain period for our economy, we are reminded that the key to keeping local economies strong is supporting local businesses. These local businesses include small/medium businesses as well as pre-IPO startups that aren’t heading to Silicon Valley anymore. As the capital markets recoil, investment crowdfunding will play a larger role in supporting these businesses and our overall economy,” says Sherwood Neiss, Principal Crowdfund Capital Advisors.

“Washington, DC needs to be reminded of this,” Neiss added.

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