Stock crowdfunding – or community fundraisers, as fundraising platforms prefer to call it, has grown steadily over the past few years. Regulations process control continues to evolve in favor of the market, and the 2022 enterprise funding cuts may be the last piece needed to permanently reassure fundraising strategy skeptics.
This year promises to be a big one for equity crowdfunding, which entails raising capital by filing certain filings with the U.S. Securities and Exchange Commission, including reg CF as well as Reg Afrom multiple investors who do not need to be accredited.
Over the past few years, equity crowdfunding has shed the stigma that used to imply that only companies that weren’t good enough for venture capital rose this way. Some traditional VCs have even explored platforms or encouraged their portfolio companies to continue the process. But with the fundraising climate now showing cloudy skies, equity crowdfunding is gearing up for a field day.
According to the Arora Project, a Republican platform that oversees crowdfunding initiatives and tracks data, more than $215 million has been invested in startups on crowdfunding platforms this year through the end of May, up from about $200 million in the same period last year. . In 2021, crowdfunding campaigns raised a total of $502 million.
While not too big of a jump, industry players are encouraged by the growth and see room for further improvement later in the year as crowdfunding typically sees a resurgence around the fourth quarter.
Credit: techcrunch.com /