Equity Crowdfunding 2018 Review
December 2018
The following data covers Regulation Crowdfunding raises between May 16, 2016, and December 31, 2018. Data is sourced from all publicly disclosed Form C filings with the SEC, as well as public websites.
Standard Analysis
Index: 1615
In the final month of 2018, companies raised over $5.1M, slightly less than November’s raise. To date, companies have raised over $161.5M via Regulation Crowdfunding, and the StartEngine Index grew 3.1%.
Over the course of 2018, companies raised $75.8M. An impressive number, but it’s worth noting that this number is relatively flat compared to 2017, a year in which companies raised just over $72M.
However, more entrepreneurs are launching campaigns. 732 companies launched Regulation Crowdfunding offerings in 2018, more than doubling the number of offerings to date. As of December 31, 2017, there had been 664 total offerings since inception.
Let’s take a closer look at what happened in 2018.
The Regulation Crowdfunding Platforms
Of the 732 offerings launched in 2018, StartEngine launched the most with 252 campaigns. Wefunder launched 158 offerings in 2018, and SeedInvest 65.
Industries That Raised Capital
Food & Beverage has been near the top all year, so it’s no surprise that the industry raised more than any other this year with $17.4M. Technology raised $8.1M, Media & Entertainment $5.4M, and Blockchain splashed into equity crowdfunding, raising $4.9M in its first big (regulatory) year.
States Using Regulation Crowdfunding
California raised the lion’s share in 2018, raising $21.8M. Texas followed with $8.6M and New York with $8.2M.
The Counties Leveraging Equity Crowdfunding
A large reason for California’s place as the largest state for equity crowdfunding lies with Los Angeles, San Francisco, and San Diego, who in 2018 raised $8.1M, $3.9M, and $3.2M. Houston and New York account for the rest of the top 5 metropolises, raising $4.2M and $3.4M.
December’s 10 Largest Raises
The top raises at the end of 2018 included Transatlantic Real Estate, a real estate company for the cannabis industry, and Legion M Entertainment, a fan-owned entertainment company. Both reached the maximum at the end of the year.
Three StartEngine companies were in the top 10 this month: ArtMap Inc., better known as the independent tech publication Hacker Noon, Mycroft AI, an open source voice assistant, and Atlis Motor Vehicles, an electronic truck company.
StartEngine In December
Companies raised $1.8M in December on StartEngine, led by ArtMap Inc (Hacker Noon), which raised $230K last month. Powell Development Group, creating a new condom design with Galactic Cap, raised $150K, and Mycroft AI raised $123K.
Did You Know?
19
Raising in Los Angeles
24
campaigns in progress
7
new offerings filed with the SEC
~$1M
raised in December
