Equity Crowdfunding by the Numbers: March 2023
Spring is famously a time for growth, and last month StartEngine did just that. Here’s March in review.
The Topline
Equity crowdfunding publication KingsCrowd clocked StartEngine at $10.4M raised under Reg. CF and $2.6M raised under Reg. A+ in March. Put together, that’s a total of $13M and an 18% lift over February’s numbers ($11M between Reg. CF & A+ combined).
Nice start to spring – we know, but how does that stack up to the competition? Again per KingsCrowd, fellow platform Wedunder finished the month at $11.1M raised; meanwhile Republic notched $3.9M in investments. Zooming out to all of 2023, StartEngine is close to a $5M lead.
*Source = https://kingscrowd.com/markets/. Please note a KingsCrowd Edge Subscription is required to access this report. The report only includes platforms selected by KingsCrowd and excludes real estate- and collectibles-only platforms, as well as Reg. D offerings and all raises limited to accredited investors.
2023 YTD Funding Totals via Reg. CF & Reg. A+ Combined
*Source = https://kingscrowd.com/markets/. Please note a KingsCrowd Edge Subscription is required to access this report.
Founders We’re Celebrating (look out in your inbox)**
Equity crowdfunding is famously, well…all about the crowd. That’s why each month, we recognize founders who go above and beyond to help us grow our community – or crowd – of investors through our “Hot Off the Press” and “Crowd Pick” awards.
“Hot Off the Press” Winners March
For bringing 100 first-time investors to StartEngine within 30 days of launch.
“Crowd Pick” Winners March
For bringing 300 first-time investors to StartEngine.
**Why am I seeing these companies? Review how StartEngine promotes offerings here. These Reg CF offerings are made available through StartEngine Capital, LLC. These investments are speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Unprecedented: Are We Entering a New Funding Environment?
A new report from Crunchbase found that global venture investing dropped by an eye-popping $86 billion YoY in the first quarter. Not only were overall dollars invested down, according to the report deal volume – i.e. the number of funded offers – fell by a staggering 45% as well. All of which leaves a gaping hole for thousands of founders.
How to explain such a drastic decline? Well, we asked none other than StartEngine’s Strategic Advisor Kevin O’Leary himself.*** Per Mr. Wonderful, looming recession concerns combined with shocks to the system – like Silicon Valley Bank’s abrupt demise – have institutional investors increasingly looking to protect their existing portfolios. Odds are that also means they’re adding far fewer new investments.
Could equity crowdfunding be a port in the storm? We certainly think it is. Apparently, so do many founders. Applications to raise capital on StartEngine shot up in Q1, culminating in 82 new offers on our platform. By the way, nine of those offerings have already crossed the $1 million mark. Explore investments.
