The following data covers Regulation Crowdfunding raises between May 16, 2016, and August 31, 2017. Data is sourced from all publicly disclosed Form C filings with the SEC.
Index: 612
The index has increased by 17.7%. Since August 2016, the compounded annual growth is now at 27.7%, showing accelerated growth in the recent months.
Wowza.
Total Capital Raised
Across all platforms, companies have raised nearly $61M through Reg CF.
Type of Company
More corp.
Most companies raising through Reg CF are corporations with 74.4%. The rest are, for the most part, LLCs. The share toward corporations has slightly increased from 68.4% in July 2017.
Type of Securities Offered
Common shares outrun SAFEs.
Common shares are still the most popular security offered at 35.5%, which is a sharp increase from last month which was 28.5%.
SAFE securities decreased this month, although they’re still in second place at 24.1%. Last month they were at 28.2%. This is probably due to the SEC’s warning about the complexity and issues with SAFE securities.
Average Company Makeup
If it looks like a startup, and acts like a startup…
The average company is still at 5 employees and is 3 years old. The average assets are $372K, down from last month $400K, under $70K is cash, and average revenue is $282K.
The average company is not profitable, with an average $220K in losses for the prior fiscal year.
The startup makeup trend is reasonably stable showing Regulation Crowdfunding attracting early stage companies in need of capital to grow.
State of Operation
Here comes Florida.
California remains the dominant state of operations for 34.7% of the companies, down from 40% last month. Second is now Florida, which jumped from fourth place to second place at 9%.
Third is New York at 7.6%, a slight increase from the previous month.
County of Operation
Austin proves its startup scene.
This month, it is the County of Travis, Texas that takes the first spot with some very impressive raises totaling $5.9M with 9.6% share since the inception of this index. Travis got a $1.07M boost this month from one raise, Gab, a censor-free social media network.
This is closely followed by Los Angeles county with $5.6M in raises representing 9.1%.
Funding Portals in 2017
StartEngine and Wefunder are neck and neck.
Since the beginning of the year, the funding portals with the most closed funding raised under Regulation Crowdfunding have been Wefunder with a market share of 29.6%, down 5 points from last month followed by StartEngine with 25.6%, slight down as well.
SeedInvest jumped from fourth spot to third spot with 18.5% a sharp increase from last month’s 12%.
Top Ten Closed Campaigns
You gotta hit the million to make the cut.
Over 20+ companies have raised to the million dollar mark in Regulation Crowdfunding, some of which are still live and accepting investments. Those who raised past the million dollar mark, thanks to an inflation boost from the SEC to $1.07M, lead the top ten raises.
