The United States of Regulation Crowdfunding – Visually Mapping the Progress

The United States of Regulation Crowdfunding

Crowdfund Capital Advisors’ data service (CCLEAR) collects, cleanses, analyzes and visually displays all Regulation Crowdfunding data in the United States (with more to come in the near future). We dive deep into the data to learn where capital is flowing in the country, where jobs are being created, what kind of economic impact Regulation Crowdfunding is having, what industries are of most interest to investors, how are company valuations trending and what Industries/States are drawing the largest investor investments. Although we are only on page 107 of this 1,000 page novel, we are now beginning to see the industry take shape and can make some projections about where it is headed over the next 12 months.

Regulation Crowdfunding is now rapidly expanding across the United States. Since it kicked off on May 16, 2016 over 475 companies have registered offerings with the Securities and Exchange Commission. They have received almost $64M in commitments. Nearly 50% of the companies have been successful with their campaigns (much higher than any other form of financing). Over $49M from more than 44,150 investors has been transferred from crowdfunding portal escrow accounts to startups and small businesses around the country in 56 industries. We note that the best portals have strict diligence and on-boarding standards so their investors only see the deals that pass their scrutiny.

Today, we want to visually show you how Regulation Crowdfunding has spread across the United States in the past 15 months. The images are monthly snapshots of where Regulation Crowdfunding success has occurred and has expanded across the majority of the country. This means thousands of jobs, increased economic output, and community backed businesses with greater financial strength.

When a company is funded within a State, the State will turn green. All States start as light green. As more capital is committed to successful companies, the color changes from light green to dark green. Dark green represents the most funded dollars.

The data shows that 15 months into Regulation Crowdfunding, California is the breakout winner with 96 funded companies receiving $20M in capital from 17,350 investors. Because they have had 3 times as much committed dollars as the next State, Texas, they are the only State to appear in dark green.

As of today, 39 out of 50 States have had successful campaigns. 3 of those States are currently running campaigns so there is a chance they will hit their funding targets and flip to green. California leads the pack followed by Texas and then Massachusetts. It will only be a matter of months before every State in the Union sees green from Regulation Crowdfunding.

Would knowing more about successful early stage companies be valuable to you? Feel free to reach out to us with questions:
sherwood@theccagroup.com.