May 16th, 2016 marked the launch of equity crowdfunding. Like any new opportunity, Title III saw its fair share of critics and promoters. Instead of arguing about something that hadn’t actually started, we decided to wait and look at what the numbers said.
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Other Stats:*
- 43 companies have filed a Form C
- 7 business have already exceeded their funding minimum
- Health Tech currently touts the single largest round at $627,290
- The last 5 week saw an average of $369,045 funds received per week
- Thursday is the most popular funding day receiving 35% of total funds
Traditional Crowdfunding
It’s been an interesting 45 days to say the least. The past 5 weeks have seen just over $1,800,000 in funding, with 72% of those funds coming in the last 3 weeks. Even though alcohol still reigns supreme in cummulative funds raised, there may be some significance in the idea that investors are leaning towards impact investing. With health tech seeing the biggest individual success thusfar, with one company raising $627,290, it shows that investors have a keen eye for life changing ideas.
Even though it’s still much too early to see how Reg CF will impact startups, it seems like investor interest is steadily growing. Access to funding startups is a very new and very risky idea for someone that’s not a seasoned investor. At FlashFunders, we’re doing as much as we can to help startups reach their funding goals, but we’ve come to realize that the success of equity crowdfunding leans heavily on the startups. As more time passes, we only hope to see more legitimate businesses use Reg CF as a tool to excite their customer base and raise capital needed to allow their business to flourish.
Check out our blog post on how a startup “exit” strategy can affect your investment.
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*All Data Sourced From: NextGenCrowdfunding Dashborad & SEC Portal