Introducing the Crowdfinance50 Index: A Daily Barometer for Investor Sentiment in the Crowdfunding Arena

Investing in the future of American enterprise just got a bit more insightful with the advent of the Crowdfinance50 Index. Designed by Crowdfund Capital Advisors (CCA), this innovative index tracks the pulse of private U.S. companies as they embark on capital-raising voyages under Regulation Crowdfunding and Rule 506(c) of Regulation D of the JOBS Act.

What is the Crowdfinance50 Index?

The Crowdfinance50 Index measures daily capital investments received by the top 50 highest-raising private issuers. It’s a meticulously calculated metric, grounded in a set of stringent selection criteria that ensures only the most eligible companies are included. You can bookmark this page to access the index whenever: https://crowdfundcapitaladvisors.com/online-investment-index-dashboard/

Why is the Crowdfinance50 Index Important?

The Crowdfinance50 Index serves as a critical gauge for investor sentiment across a wide array of industries and geographies. With over 8,200 offerings from more than 7,000 issuers, the index captures a comprehensive snapshot of the U.S. private sector’s fundraising efforts when it comes to Regulated Investment Crowdfunding.

What Does the Crowdfinance50 Index Track?

Beyond the raw numbers, the index is a story of ambition and entrepreneurship. It showcases which sectors are hot, which geographical locations are burgeoning hubs of innovation, and where investors are most eagerly placing their bets.

How Can the Crowdfinance50 Index Be Used?

The index is more than just a number. It’s a tool for investors to discern market trends, for policymakers to understand the impact of legislation, and for entrepreneurs to benchmark their fundraising efforts.

For Investors:

The index acts as a proxy for where investor confidence is coalescing, offering a real-time view of the sectors and regions drawing capital. It’s a bellwether for where the market is vibrant and where there’s cautious optimism.

For Entrepreneurs:

For the trailblazers and visionaries, the index is a beacon that illuminates the fundraising landscape. It reveals investor appetites and provides a comparative analysis of capital-raising success across different platforms.

For Policymakers:

The index’s data-rich insights can inform decisions on regulation and support, showing the JOBS Act’s tangible outcomes and guiding future legislation to foster economic growth.

For the Crowdfunding Ecosystem:

Platforms registered with the SEC contribute data to the index, which becomes a collective scorecard of their performance. As the index evolves, it will add new platforms, ensuring a comprehensive view of the market.

Methodology at a Glance

The index is derived from a robust methodology:

  • Selection Criteria: Includes U.S. location, active listing on SEC-registered platforms, and fulfillment of minimum funding targets.
  • Calculation: Uses the sum of investments for the top 50 companies each day, divided by a base constant derived from FY 2019 data.
  • Daily Update: Ensures the most current market representation.
  • Maintenance and Recalculation: CCA maintains and, when necessary, recalculates the index to reflect accurate market dynamics.

The Crowdfinance50 Index stands as a testament to the vibrancy of the U.S. entrepreneurial spirit and the confidence of investors who back it. It’s a daily digest of American innovation, an index of dreams being funded, and a measure of the nation’s belief in the power of its own future.

For more detailed insights or inquiries, reach out to Crowdfund Capital Advisors at data@theccagroup.com or call (877) 748-2751. Explore the rhythm of American enterprise with us, one investment at a time.

 

Unlock the Future of Finance: Explore the Regulated Investment Crowdfunding Trends 2024 Report

In the ever-evolvingworld of finance, staying ahead is key. That’s why we’re excited to present our comprehensive “Investment Crowdfunding Trends 2024” report, your free gateway to understanding the future of investment crowdfunding. With over 200 meticulously curated slides, this report offers a macro-level overview of the industry from its inception, drawing parallels to the seminal Mary Meeker Internet Trends Report but focused on the niche of crowdfunding.

Dive deep into data-driven insights, sector-specific analyses, and forward-looking predictions that are crucial for investors, entrepreneurs, and market analysts. This extensive resource is designed to arm you with the knowledge to navigate the complexities of tomorrow’s investment opportunities, highlighting pivotal trends, technological advancements, regulatory landscapes, and market dynamics.

Whether you’re a seasoned investor or new to the crowdfunding scene, this report is an invaluable tool for anyone looking to harness the potential of the future financial landscape. Download your free copy today and embark on a journey to financial foresight.

📬 Setting the Record Straight: Our Response to NASAA’s Objections

 

 

 

Correcting the Course: Our Evidence-Based Rebuttal to NASAA’s Claims

We find ourselves at a crucial juncture in the journey of Regulated Investment Crowdfunding, a path recently clouded by the North American Securities Administrators Association’s (NASAA) objection letter to Congress dated January 26th. The letter, laden with fear, uncertainty, and doubt, lacked a critical element – relevant data to support its assertions.

In a robust defense of innovation and economic progress, Crowdfund Capital Advisors crafted a data-driven rebuttal to NASAA’s claims, drawing on 8 years of comprehensive Investment Crowdfunding insights. Our intention was clear: to present an accurate, evidence-based perspective to Congress, countering NASAA’s unfounded concerns.

We are heartened to see that our efforts have gained recognition, with a CrowdfundInsider feature story on our letter . This coverage is not just a testament to our commitment but also a call to action for all stakeholders to engage in informed dialogue.

To further underscore the gravity of our counter-argument, Sherwood Neiss, Principal at Crowdfund Capital Advisors, shared his thoughts with CrowdfundInsider: ”

In my view, the NASAA’s recent communications to Congress represent a particularly insidious form of disinformation, characterized by a willful disregard for the current data and realities of Regulation Crowdfunding. Their approach, which selectively cites outdated figures and ignores the transformative impact of recent regulatory changes, does a disservice not only to the innovative platforms and entrepreneurs driving economic growth and creating jobs but also to the very principles of informed legislative debate. I find it imperative to counter such narratives with rigorous, data-driven analysis to ensure that policy decisions are grounded in the realities of today’s financial landscape, rather than the misconceptions of yesterday.  My rebuttal to their letter is not just about setting the record straight; it’s about advocating for a more honest and evidence-based discourse that truly serves the interests of American businesses and investors.“<

We invite you to read the full letter [click the image below] and join us in this critical conversation. Your support propels us forward as we advocate for policies rooted in truth and data, shaping a future that benefits all.

Together, we stand for transparency, integrity, and the power of crowdfunding to transform lives and economies.

With gratitude,

The Team at Crowdfund Capital Advisors

Unlocking Capital: The Transformative Journey of Investment Crowdfunding in 2023

In the world of private capital, 2023 has been a landmark year for Regulated Investment Crowdfunding, showcasing a dynamic blend of growth, innovation, and resilience. As we navigate through the year’s achievements, it’s evident that this sector is not just surviving but thriving, redefining the entrepreneurial ecosystem and investor engagement.

A Surge in Economic Empowerment

This year, investment crowdfunding has been a beacon of economic stimulation, with over $500 million funneled ($2.2 billion to date) into diverse ventures, catalyzing a staggering enterprise value of $75.6 billion. The ripple effect of this funding has been monumental, underpinning over 310,000 jobs and injecting an annual economic stimulus of $6.8 billion. These figures aren’t just numbers; they’re a testament to the sector’s robust impact on the grassroots level of the economy, fostering growth, innovation, and employment across a plethora of industries.

Democratizing Investment: A Wider Reach

The democratizing power of crowdfunding has never been more pronounced. With over 1.9 million investors participating, this law has broadened the investment horizon, enabling a wider array of individuals to partake in the financial backing of ventures they believe in. Remarkably, in 2023, 41.7% of all issuers had at least one woman or minority founder, showcasing a commitment to diversity and inclusion far surpassing the venture capital world. This inclusivity not only diversifies the investment landscape but also amplifies the potential for groundbreaking ideas to secure the capital they need to flourish.

Resilience Amidst Adversity

Despite the venture capital pullback that began in 2022 and persisted through 2023, investment crowdfunding has stood resilient, filling the void by funding more deals and attracting more established issuers. The evolving landscape now sees 65% of issuers as post-revenue established entities, indicating a shift towards less risky investment opportunities. This change underscores the sector’s adaptability and its crucial role in supporting businesses through challenging economic times.

The Path Forward

While 2023 witnessed a cautious approach from issuers, the anticipation for 2024 is high, with expectations of increased market activity. Despite a dip in investor numbers, the capital deployed reached new heights, demonstrating robust confidence in the crowdfunding mechanism. Companies engaging in Investment Crowdfunding are witnessing remarkable YoY revenue growth, significantly outpacing the general market trends. As we look to the future, the sector is poised for a resurgence, ready to capitalize on the heightened investor engagement and substantial capital influx.


Embracing this forward momentum, Investment Crowdfunding is set to scale new heights, further cementing its position as a pivotal player in the financial landscape. For an in-depth exploration of the trends and detailed insights, visit the comprehensive report at cclear.ai/ccareport.

CCLEAR, Inc. Launches CapitalPulse Ratings for Enhanced Analysis of Regulation Crowdfunding Investments

For Immediate Release

CCLEAR, Inc. Launches CapitalPulse Ratings for Enhanced Analysis of Regulation Crowdfunding Investments

Denver, CO – January 4, 2023: CCLEAR, Inc., a subsidiary of Crowdfund Capital Advisors, LLC (CCA), is excited to announce the launch of CapitalPulse RatingsTM, a pioneering rating system designed for private companies engaged in Regulation Crowdfunding. This innovative system represents a significant step forward in the analysis of crowdfunding investments, offering dynamic, data-driven insights.

Under the stewardship of CCA – the team behind the framework of Regulation Crowdfunding – CCLEAR, Inc. stands at the forefront of crowdfunding data analysis. CCA’s contributions to the industry are substantial, including their role in the legislative process of Regulation Crowdfunding, the creation of a comprehensive dataset of all crowdfunding offerings, the CCLEAR CrowdFinance 50TM, an index that tracks the overall health and trends of the Regulation Crowdfunding market, and authorship of the ‘Dummies Guide to Investment Crowdfunding.’

CapitalPulse Ratings: Merging Traditional Analysis with Investor Sentiment
CapitalPulse Ratings offers an intricate look at the investment landscape, merging traditional venture analysis—such as company performance and industry benchmarks—with groundbreaking insight into investor sentiment. Sherwood Neiss, Principal at Crowdfund Capital Advisors, states,”CapitalPulse Ratings consider the tried-and-true metrics that angels and venture capitalists rely on, then enhance this with real-time data on how much and how quickly investors are backing these companies. This dual approach gives a 360-degree view of a company’s true investment potential.”

The CapitalPulse algorithm reviews investment crowdfunding offerings and rates them from good to bad based on when a business was incorporated, where it is located, if it has sales, how fair its valuation is compared to others in its industry, how much capital has been invested, how many investors in the round, and other factors like cash, accounts receivables, short-term debt, long-term debt, and income. Each company is scored and ranked into categories.

CapitalPulse Ratings categorizes companies into five distinct tiers, each reflecting the company’s potential and current market position:

  • Rapid Raiser: Companies with swift capital inflow, showing strong investor confidence.
  • Steady Climber: Companies demonstrating consistent growth in investor interest.
  • Emerging Contender: Companies with unfulfilled potential but showing promise.
  • Potential Unlocker: Companies with latent potential yet to be realized.
  • Emerging Opportunity: Companies whose value may not be immediately evident from current data.

Updated weekly, CapitalPulse Ratings ensures that subscribers receive the most current and relevant insights. Each category is crafted to provide a comprehensive understanding of a company’s standing, aiding subscribers in making informed decisions.

Important Disclaimer
The ratings provided by CCLEAR, Inc.’s CapitalPulse Ratings serve as a powerful tool for gauging company performance and market sentiment, offering a unique layer of insight for investors navigating the Regulation Crowdfunding space. However, they are intended for informational and analytical purposes only and should not be the basis for investment decisions.

While CapitalPulse Ratings provide a snapshot of a company’s financial momentum and investor interest, they do not replace the essential, in-depth analysis of a company’s leadership, including the founders’ industry experience, their track record in building startups, or their proficiency in securing capital. Investors are encouraged to conduct thorough due diligence on all aspects of a company to build a complete investment profile.

Exclusive Access for Subscribers
Access to CapitalPulse Ratings is exclusive to subscribers of CCLEAR’s dataset, which represents a complete collection of all Regulation Crowdfunding offerings. This exclusivity emphasizes CCLEAR’s commitment to delivering high-quality, actionable data.

CONTACT: Yvan De Munck, Yvan@cclear.ai

About CCLEAR, Inc.
As a wholly owned subsidiary of Crowdfund Capital Advisors, LLC, CCLEAR, Inc. is a leader in Regulation Crowdfunding data analysis. The team’s involvement in developing the Regulation Crowdfunding framework positions them as a key player in the industry, equipped to provide unparalleled insights and data.

Defying Expectations: Regulation Crowdfunding Issuers Prove More Resilient Than Traditional Companies

In the dynamic world of business, longevity and success are often viewed through the prism of traditional metrics and pathways. However, recent CCLEAR1 Data on Regulation Crowdfunding issuers paints a different picture, one that challenges conventional wisdom and suggests that businesses funded through online platforms may have a surprising edge in longevity compared to their traditionally funded counterparts.

A New Era of Business Longevity
Contrary to popular belief, businesses that seek capital online through Regulation Crowdfunding are not merely outliers or ‘last resorts.’ In fact, they might just be the vanguards of a new era of business resilience. According to data analyzed by Crowdfund Capital Advisors, there’s a compelling trend that emerges: businesses funded through Regulation Crowdfunding exhibit a higher survival rate than the general business population.

“The Bureau of Labor and Statistics reports that approximately 50% of all new businesses fail within five years. Yet, our analysis of over 6,800 companies engaged in Regulation Crowdfunding tells a different story. Here, only 17.76% of funded companies have gone out of business, a stark contrast to the national average,” says Sherwood Neiss, Principal at Crowdfund Capital Advisors. “This is a significant finding that underscores the viability and strength of Regulation Crowdfunding as a funding mechanism.”

The Data Speaks: Visualizing Success Over Time
Employing Tableau for an in-depth analysis, our team effectively visualized the data to shed light on significant patterns. One of the most revealing visualizations is the survival rate over time, segmented by the year of funding. This line chart (below) uncovers a critical insight: companies funded before 2019 demonstrate a remarkable tenacity, with a higher-than-expected rate of continuing operations. This observation notably contrasts with the Bureau of Labor and Statistics’ findings, which suggest a higher likelihood of failure for businesses as they age. Companies utilizing Regulation Crowdfunding defy the typical business failure rates in their later years and have a very high survival rate in the years surrounding their funding.

Startups vs Established Companies: A Surprising Revelation
While established companies funded through Regulation Crowdfunding show admirable resilience, the data on startups is particularly striking. “Even though startups are traditionally seen as higher risk, those funded via Regulation Crowdfunding are defying expectations. The data indicates that these startups have a better chance of survival than many of their counterparts in the traditional business world,” Neiss observes.

While established companies and startups show varying degrees of resilience, another layer of analysis presents an even more compelling narrative about diversity in business success. In the realm of Regulation Crowdfunding, 90.4% of companies founded by women are still operational, compared to 81.6% of those founded by men. Similarly, businesses founded by minorities exhibit a commendable survival rate of 87.8%, slightly higher than the 82% for companies founded by non-minorities.

These statistics not only highlight the significant role of diversity in business success but also challenge some of the traditional biases prevalent in business funding. The success rates of women and minority-founded companies in the Regulation Crowdfunding sphere are not just numbers; they represent a shift in the entrepreneurial landscape, where access to capital through alternative platforms is enabling a broader range of founders to succeed. This trend is a positive indication that the democratization of funding could be contributing to a more inclusive and diverse business environment.

An additional layer of insight is revealed when examining the correlation between the revenue and survival status of companies. The data shows a clear trend: companies with higher revenue bands tend to have a higher survival rate. This pattern indicates that financial robustness, reflected in their revenue figures, plays a crucial role in the longevity of a business. Specifically, companies in the higher revenue bands are more likely to be operational, which could point to a direct relationship between financial health and business survival.

Equally telling is the relationship between the amount of capital raised and business status. Businesses that secured higher funding through Regulation Crowdfunding demonstrate a noticeably lower closure rate than those that raised smaller sums. This suggests that the level of funding acquired not only provides the necessary capital for growth but also serves as a marker of investor confidence and business viability. It appears that higher funding targets correlate with better business resilience, further underscoring the importance of access to adequate capital in ensuring business longevity.

“These trends, when combined with the previously discussed insights on the success rates of women and minority-founded companies, paint a picture of an evolving business landscape. Regulation Crowdfunding is not only facilitating a higher survival rate across the board but is also promoting diversity and financial stability, challenging traditional narratives in the business funding domain,” said Neiss.

Policy Implications: Time for a Change
This data challenges the notion of adverse selection in Regulation Crowdfunding. “Far from being a haven for ‘bad seeds,’ these platforms appear to be nurturing businesses with a higher propensity for survival,” Neiss explains. “It’s a testament to the power of community support, due diligence, and perhaps, the democratization of funding.”

Given these insights, Neiss advocates for reevaluating current policies: “The current cap of $5 million for Regulation Crowdfunding might be unduly limiting. Considering these businesses’ apparent resilience and success rate, raising the cap to $20 million could be a bold step forward, enabling more companies to benefit from this pathway to success.”

Conclusion: A Paradigm Shift in Funding and Success
The world of business funding is witnessing a paradigm shift. Regulation Crowdfunding is not just an alternative funding route but a potentially more viable one for many businesses. “This data doesn’t just speak; it heralds a new era of business resilience and success,” concludes Neiss. As we move forward, it’s crucial for both entrepreneurs and policymakers to heed these numbers and embrace the changing landscape of business financing.

1. CCLEAR is the data division of Crowdfund Capital Advisors. CCLEAR has a 100% complete dataset of all Regulation Crowdfunding offerings that is inclusive of more than 6,800 companies and 7,900 offerings including business status, investor sentiment, valuation, and more.

Meet Sherwood Neiss of Crowdfund Capital Advisors

Meet Sherwood Neiss of Crowdfund Capital Advisors

Today we’d like to introduce you to Sherwood Neiss.

Sherwood, we appreciate you taking the time to share your story with us today. Where does your story begin?
Embarking on a journey that transitioned from earning my MBA and navigating the intricate world of Wall Street, to contributing to a high-growth Silicon Valley company, and co-founding FLAVORx, Inc., my career has been a vibrant tapestry of exploration and innovation. FLAVORx, which made medicinal consumption for children more palatable, expanded from a single pharmacy to a network of over 40,000, before being successfully sold after various financing rounds. This venture was a significant milestone in my career, but it was just the beginning.

The sale of FLAVORx and the subsequent frustrations of fundraising limitations propelled me into the realm of Investment Crowdfunding. Alongside two entrepreneurial friends from business school, we devised the Startup Exemption, an 8-point framework that blended early-stage venture financing principles with emerging community capital platforms like Kickstarter and Kiva. Our grassroots efforts and strategic alliances in Washington transformed our framework into an 8-page bill, which, after gathering bipartisan support, was signed into law – a moment we were privileged to witness at the White House.

Post-legislation, my journey took another pivotal turn during a Bloomberg Television interview, which spotlighted the potential of Investment Crowdfunding for pre-IPO startups and our economy.

Leveraging my experiences from Silicon Valley and Wall Street, I developed a data aggregator, launched on May 16, 2016, which meticulously tracks around 125 data points on every company initiating a RegCF offering. The industry has since funneled over $2.1B from nearly 2M average Americans, acting as mini VCs, into what we anticipate will be future unicorns.

This extensive dataset, now available through CCLEAR.ai (www.cclear.ai) to various sectors, revealed an opportunity to build wealth for investors intrigued by RegCF deals but lacking the time for in-depth exploration. Partnering with a team of data science PhDs, we spent 18 months developing a machine learning algorithm that identifies patterns and signals from companies that have secured venture capital financing, predicting potential success stories among new entrants. This algorithm is the foundation of our venture fund, D3VC.ai (www.d3vc.ai), where we invest in companies post-typical VC diligence.

Recognizing that many companies are staying private longer, and understanding the investor’s reluctance to wait indefinitely for returns, I co-founded GUARDD (www.guardd.com). This startup facilitates investors in private companies to sell their shares on private exchanges, ensuring regulatory compliance.

Today, my journey continues as I steer the helm of three companies out of Crowdfund Capital Advisors (www.theccagroup.com), each a byproduct of the crowdfunding law we helped shape, firmly believing in a future where Investment Crowdfunding transcends capital raising. It’s about forging an ecosystem where data, liquidity, and venture capital converge, unlocking unprecedented opportunities for investors and startups alike.

Can you talk to us about the challenges and lessons you’ve learned along the way? Looking back, would you say it’s been easy or smooth in retrospect?
Smooth? Far from it! The entrepreneurial journey is anything but a straight path – it’s a rollercoaster of highs and lows, where forging ahead often means cutting through a dense forest of challenges and naysayers. It demands an unwavering determination, a readiness to stumble, stand back up, dust oneself off, and persistently march forward. Throughout my journey, there have been critical junctures where the support of spouses, close friends, and family became my backbone.

I’ve navigated through a myriad of challenges, from making the tough decision to return $1 million to investors after realizing our visions misaligned, to navigating the intricate dynamics of running a family business, and even embroiling in legal battles. And oh, the adventures of trying to steer through the complex maze of Capitol Hill – that’s a story in itself!

Now, as a husband and father of two young children, the balancing act has evolved. Juggling the demands of work, and family, and ensuring my mental well-being is intact, has become the new challenge. That’s precisely why you’ll find me at the gym at 6 am, five times a week – it’s my sanctuary, ensuring I’m fortified to face whatever the entrepreneurial journey throws next!

Alright, so let’s switch gears a bit and talk business. What should we know?
At Crowdfund Capital Advisors, we stand at the forefront of investment crowdfunding, a dynamic sector that we’ve not only pioneered but continue to innovate within. Our organization is a symbiotic ecosystem comprising three integral components that collectively define our operations and our vision.

Our specialization is rooted in data, analysis, and advocacy for the crowdfunding industry. I have had the unique honor of being a foundational influence in this space, sometimes referred to as one of the ‘godfathers’ of investment crowdfunding. This term, while I use it with a degree of humility, signifies my deep involvement in the creation and lobbying of the legislative framework that has enabled investment crowdfunding to thrive. I had the privilege to witness the culmination of our efforts in person during the bill-signing ceremony at the White House.

What truly distinguishes us is our commitment and sustained presence in the industry. Unlike many early pioneers who have since departed, we continue to drive the sector forward, bringing more attention, resources, and clarity to what President Obama envisaged as a fundamental shift in the private capital markets.

Perhaps our proudest accomplishment is the legislative success that we achieved in a remarkably short period. To have crafted and passed a law in 460 days, with a deeply divided Congress coming together in agreement, is something few can claim. This historic achievement exemplifies our ability to unite differing perspectives toward a common goal.

We see ourselves as the definitive source of investment crowdfunding intelligence. Our repositories of data position us as the PitchBook or Crunchbase of our industry, yet with the analytical depth akin to Bloomberg. We offer stakeholders comprehensive insights into capital flow, investor earnings, and strategic capital deployment within the crowdfunding space.

Looking ahead, Crowdfund Capital Advisors is committed to shaping the future of investment crowdfunding. We are the nexus where three transformative themes meet:

CCLEAR, which represents the analytics and transparency driving investment crowdfunding. Here, we transform raw data into actionable insights that highlight the sector’s growth and potential.

GUARDD, our answer to the complexities of liquidity in private securities trading. This initiative is about creating seamless transitions from investment to exit.

D3VC is a reimagining of venture capital that bridges traditional methods with the latest in AI, offering a diversified and inclusive approach to early-stage investments.

The convergence of these themes under the banner of Crowdfund Capital Advisors illustrates our holistic vision. We are not mere spectators but active architects of a future where investment crowdfunding is a complete ecosystem — one where data, liquidity, and venture capital converge to empower both investors and startups.

Or as I like to say, “The future of investment crowdfunding goes beyond capital raising. It’s about crafting an ecosystem where data, liquidity, and innovative venture strategies coalesce to unlock new opportunities.”

We love surprises, fun facts, and unexpected stories. Is there something you can share that might surprise us?
Something that may come as a surprise to those familiar with my professional persona or my brand is my profound passion for the culinary arts and my zeal for cleanliness. While I am wholly dedicated to my craft and career, finding solace and a unique form of expression through cooking has become an integral part of my daily unwinding ritual.

Cooking is not just a means to an end for me; it’s a cathartic experience, allowing me to momentarily step away from my work and indulge in the creation of a different flavor—literally. As I meld ingredients and spices, I’m crafting a masterpiece that’s meant to be savored and enjoyed, much like the work I produce professionally. It’s not uncommon to hear me appreciatively murmur “yum” over the dishes I’ve prepared as I take pride in the excellence and deliciousness of each meal.

And then there’s cleaning—a task many might shun, but for me, it’s another expression of my meticulous nature. Post-cooking, I enjoy the process of restoring order and preparing for what’s next. Systematically loading the dishwasher, scrubbing pots and pans, and ensuring the kitchen is spotless for the next day isn’t just about tidiness; it’s about readiness and the pleasure of knowing everything is set to begin anew.

Contact Info:

     

Unlock the Secrets of Investment Crowdfunding: Exclusive 50% Pre-Order Discount!

Are you ready to navigate the intricate world of investment crowdfunding in 2023? Our 2023 Annual Investment Crowdfunding Report: A Game of Chess comes out in January to guide you through the dynamic landscape.

In this year’s edition, we delve into the economic chess game, marked by Federal Reserve’s maneuvers, the roller-coaster stock market, and geopolitical tensions. Despite these challenges, discover how investor sentiment in the crowdfunding space has shown incredible resilience, with record-breaking investment trends.

Key Highlights of the 2023 Report:

  • Over seven years of comprehensive data analysis.
  • Insightful exploration of market dynamics, investor behavior, and economic impacts.
  • A staggering 130 pages, adorned with nearly 100 charts, graphs, and images.
  • A special focus on the roles of women and minorities in crowdfunding.
  • Predictions for 2024, identifying emerging opportunities in a shifting landscape.

Special Pre-Order Offer: Secure your copy now at an exclusive 50% discount! This offer is only valid until December 31st, 2023. Learn more and preorder here.

Don’t miss this opportunity to gain unparalleled insights into the investment crowdfunding world. Pre-order your copy today and be prepared for the opportunities and challenges of 2024.

Learn more about the 2023 report by clicking here

Pre-order the report by clicking here

Have a question about the report?

 

 

Capital Ideas: Sherwood Neiss on the Evolution of Crowdfunding

The following is a reprint of the article. The original can be found here

With the investment crowdfunding industry surpassing the $2 billion mark and involving over 6,600 companies conducting 7,600 offerings across 580 industries, Capital Ideas checks in with Sherwood “Woodie” Neiss, one of the early architects of what evolved into Regulation Crowdfunding [Reg CF]. Among other things, Woodie is now employing AI as part of his effort to collect, analyze, and disseminate data to enable the crowdfunding industry to grow further. Hear Woodie discuss his efforts and some of the regulatory barriers facing the industry including CPA reviews, regulatory exposure for CF platforms, and accredited investor restrictions.

Woodie highlights the growth and success of equity crowdfunding since its inception. He mentions the database his firm Crowdfund Capital Advisors created to collect information on companies raising money through Regulation Crowdfunding. The data reveals a significant increase in committed capital, with October 2023 recording $52.4 million, marking a substantial shift from the initial slow adoption.

One noteworthy transformation is the shift in the profile of companies participating. Initially dominated by pre-revenue startups, the industry has seen a change after the SEC lifted the cap from $1 million to $5 million in 2021. Now, 65% of companies are post-revenue and over three years old. The average raise has also increased, reaching $715,000 in October.

Role of AI in Crowdfunding
Woodie delves into the challenges faced by the crowdfunding industry, emphasizing the lack of media coverage and institutional capital. To address these challenges, he introduces the concept of using AI, specifically machine learning algorithms, to analyze and predict the success of crowdfunding campaigns.

The algorithm developed by Crowdfund Capital Advisors examines signals from companies that have succeeded in crowdfunding, such as revenue changes, expense changes, earnings changes, and valuations. The goal is to identify patterns that indicate potential success. This data-driven approach allows for weekly predictive models that recommend companies for further human evaluation.

Application of AI in Investment Decision-Making
Woodie explains the investment process at D3 VC, a $5 million starter fund aiming to invest $25,000 into 200 companies. The algorithm guides the selection process, considering signals from successful companies and investor sentiment. By backtesting the algorithm against successful companies like Boxable, the team aims to demonstrate the effectiveness of their approach.

He emphasizes the potential for institutional capital to enter the crowdfunding market if AI-driven algorithms can provide reliable signals for early-stage companies. The vision is to attract larger funds by showcasing successful outcomes and offering a diversified investment strategy.

Regulatory Impediments and Gray Areas
Neiss acknowledges regulatory impediments within the crowdfunding space. He addresses issuer concerns about CPA reviews and emphasizes the importance of third-party verification for investor confidence. Neiss suggests that despite complaints, there are resources available for issuers to navigate regulatory requirements.

He also highlights gray areas, particularly concerning platform accountability and potential enforcement actions. Neiss advocates for clear regulations and accountability for crowdfunding platforms while suggesting that the industry needs to address these issues collectively.

Closing Thoughts and Future Prospects
In the end, Woodie expresses optimism about the crowdfunding industry’s future. He acknowledges the industry’s achievements and diverse participation across various sectors. He calls for continued efforts to raise the Regulation Crowdfunding cap from $5 million to $20 million, arguing that the industry has proven its viability and is ready for further expansion.

Woodie provides a comprehensive overview of equity crowdfunding’s journey, the role of AI, regulatory challenges, and the potential for institutional capital to play a more significant role in the future. Woodie’s insights contribute to the ongoing dialogue about the evolution and maturation of crowdfunding as a viable alternative finance option.

2023 Annual Report Pre-Order Page

Thank you for your interest in our 2023 Investment Crowdfunding Annual Report: A Game of Chess. You can use this page to pre-order either/both the report and the data download supplement.



CCA Appears on This Week in Crowdfunding

Sherwood Neiss and Yvan De Munck of CClear, the industry leader in Reg CF data,  join Brendan Carberry and Connor Fata for another enlightening episode of This Week in Crowdfunding as they discuss the latest breakthroughs and trends in crowdfunding, finance, and technology. They talk about what they do and release their monthly crowdfunding report EXCLUSIVELY on the pod!

Welcome to Next Big Thing HQ, your premier podcast destination specializing in the equity crowdfunding landscape. Hosted by Brendan Carberry and Connor Fata, we strive to dissolve the barriers that often separate crowdfunding investors from the visionary founders they back. Through riveting interviews with emerging entrepreneurs, in-depth analysis of market trends, and nuanced discussions on the future of innovation, we create a unique platform where investors meet pioneers. Whether you’re an equity crowdfunding investor, an aspiring founder, or simply intrigued by groundbreaking technologies and ideas, Next Big Thing HQ is your go-to source for staying ahead of the curve. Subscribe now and be part of the community that witnesses the future unfold, one investment at a time. #NextBigThingHQ #NBTHQ

 

Capital Ideas Podcast with CCA’s Sherwood Neiss

With the investment crowdfunding industry surpassing the $2 billion mark involving over 6,800 companies conducting 7,900 offerings across 580 industries, Capital Ideas checks in with Woodie Neiss, one of the early architects of what evolved into Regulation Crowdfunding. Among other things, Woodie is now employing AI as part of his effort to collect, analyze, and disseminate data to enable the crowdfunding industry to grow. Hear Woodie discuss his efforts and some of the regulatory barriers facing the industry including CPA reviews, regulatory exposure for CF platforms, and accredited investor restrictions.