July 12, 2018 • 5 Min Read

StartEngine: Regulation Crowdfunding Index June 2018

By The StartEngine Team

June 2018

The following data covers Regulation Crowdfunding raises between May 16, 2016, and June 30, 2018. Data is sourced from all publicly disclosed Form C filings with the SEC, as well as public websites.

Standard Analysis

Index: 1185

With the fireworks of the 4th of July now a fading afterimage, the world of equity crowdfunding moves into the second half of summer and into the third quarter of the business year.

In June, businesses raised over $6.5M via Regulation Crowdfunding. In total, Regulation Crowdfunding offerings have raised a combined $118.5M to date. The Index grew 3% this month.

Top Campaigns in June

The Full Raise Amounts as of 6/30 for the 5 largest active Reg CF Campaigns in June 2018

The top 5 campaigns in June include Republic’s Coinvest, an ICO that reached its maximum raise. Coinvest is a complete ecosystem for crypto investments, from wallet to trading platform. Full Circle Brewing, a Fresno-based brewery, closed their offering with a total raise of $809k after opening their raise last November.

Closing out the top five are Legion M, a fan-owned media company, CNS Pharma, which is developing a drug to fight brain cancer, and Keezel, a technology product that encrypts and protects consumer devices on WiFi networks.

Funding Portals

Capital Raised in June Via Reg CF by Portal

Across all offerings, Wefunder, StartEngine, and SeedInvest control the lion’s share of capital raised in June with $2.5M, $1.3M, and $1.3M respectively.

Offerings Filed with the SEC in June by Portal

In terms of the volume of offerings filed with the SEC, StartEngine leads the way with 30 offerings filed in June. Wefunder filed 17, SeedInvest 8, and Republic 4. In total, 76 offerings were filed with the SEC in June.

Security Type Breakdown for the Top 3 Funding Portals

Offerings Since Inception by Security Type On StartEngine

As the industry continues to mature, common stock has become the clear go-to choice for companies that do Regulation Crowdfunding on StartEngine. As of June 30, nearly 70% of companies choose to raise capital via the sale of common stock on the platform.

Offerings Since Inception by Security Type On Wefunder

Wefunder, on the other hand, has shown a specialization in SAFE offerings, or Simple Agreements for Future Equity, a structure first devised by Y Combinator.

Offerings Since Inception by Security Type On SeedInvest

SeedInvest takes a narrower approach and has done only 4 structures historically, the most common of which is debt offerings. The unlabeled portion at the top of the graph is SAFE with .9% of offerings on SeedInvest.

Industry In June

Technology companies raised the most capital in June with $1.2M. Food & Beverage companies follow with $1.1M, and Media & Entertainment with $536k.

State of Operation

In the month of June, California and New York controlled a near majority of capital raised with $1.6M and $1.5M raised respectively.

Momentum on StartEngine

Capital Raised in June on StartEngine by Offering

Mycroft AI, an open source voice assistant, had the most momentum on StartEngine in June with $210k raised. Geopulse follows with $88k, and Dashing with $81k.

Raising in Los Angeles

46

campaigns in progress — up 8 from last month

12

new offerings submitted to the SEC, up 3 from May

~$906k

raised in June

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StartEngine Bulletin Board (“SE BB”) is a bulletin board platform on which users can indicate to each other their interest to buy or sell shares of private companies that previously executed Reg CF or Reg A offerings not necessarily through SE Primary. As a bulletin board platform, SE BB provides a venue for investors to access information about such private company offerings and connect with potential sellers. All investment opportunities on SE BB are based on indicated interest from sellers and will need to be confirmed. Even if parties express mutual interest to enter into a trade on SE BB, a trade will not immediately result because execution is subject to additional contingencies, including among others, effecting of the transfer of the shares from the potential seller to the potential buyer by the issuer and/or transfer agent. SE BB is distinct and separate from SE Secondary. SE Secondary facilitates the trading of securities by matching orders between buyers and sellers and facilitating executions of trades on the platform. By contrast, under SE BB, SE Primary assists with the facilitation of a potential resulting trade off platform including, by among other things, approaching the issuer and other necessary parties in relation to the potential transaction. The term “Extended”, when used in relation to transactions on SE Marketplace denotes that these transactions are conducted via SE BB, and that these transactions may involve longer processing times compared to SE Secondary for the above-stated reasons.

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