Happy New Year! As we look back on 2024, Regulation Crowdfunding (RegCF) has firmly established itself as a cornerstone of the U.S. capital markets. Against the backdrop of global economic uncertainty and the retreat of traditional venture capital, RegCF demonstrated its maturity and resilience, driving innovation, creating jobs, and transforming communities.

From near-record-setting capital commitments to rising valuations and job creation, 2024 was a landmark year for the industry. Below, we break down the key data and trends that defined this transformative year.

Capital Commitments Hit Record Levels

Capital raised through investment crowdfunding reached $547 million in 2024, marking steady growth from its early years. More significantly, 71.2% of these commitments came from post-revenue issuers, reflecting the industry’s evolution into a critical funding source for growth-stage companies.

Parallel offerings, where companies simultaneously raise funds from both retail and accredited investors, also gained significant traction, accounting for a notable portion of total commitments in 2024. Without these parallel offerings, however, the year would have marked a continuation of the decline in overall RegCF commitments, which have dropped for three consecutive years—from a high of $554 million in 2021 to just $375 million in 2024. The inclusion of these parallel amounts has allowed the industry to show cumulative growth (RegCF combined with 506(c)) over the past three years, signaling a maturing ecosystem where issuers strategically use RegCF to target a diverse investor base and optimize their capital-raising efforts.

This growth came amid a challenging macroeconomic environment, characterized by rising interest rates and VC hesitancy. As traditional investors held back, crowdfunding filled the gap, empowering businesses to connect directly with everyday investors and accredited backers alike.

Valuations Reflect Industry Maturity

Median valuations in 2024 showcase crowdfunding’s ability to support businesses at all stages of development. Pre-revenue startups achieved a median valuation of $10 million, double the $5 million benchmark from 2016. In contrast, post-revenue issuers reached $20 million, leveraging proven revenue models to command higher investor confidence. Established businesses led the way with a median valuation of $20 million, double that of startups at $10.3 million. These trends highlight how crowdfunding has evolved into a platform capable of meeting the needs of both early-stage and growth-stage companies.

However, the sharp rise in valuations among pre-revenue startups deserves closer scrutiny. For companies with little more than an idea, median valuations exceeding $5.0M raise questions about investor discipline and the realistic expectations of founders. While crowdfunding is designed to democratize access to capital, overly ambitious valuations can undermine investor trust and skew market dynamics. As Sherwood Neiss of Crowdfund Capital Advisors explains, “Crowdfunding gives startups a fighting chance, but founders must balance ambition with practicality. Responsible valuations ensure that both investors and issuers build sustainable relationships for long-term success.”

Crowdfunding Drives Job Creation

In 2024, RegCF companies supported 110,976 jobs, up from just 6,432 in 2016. This growth reflects the increasing participation of larger companies with more employees seeking crowdfunding.

The average company employed 10 people in 2024, more than double the 4.6 average in 2016. While not massive, these companies are the backbone of the economy, creating jobs in local communities and reinvesting billions into the economy. This trend aligns with the rise of post-revenue issuers, which tend to have larger workforces than early-stage startups.

The Rise of Diverse Offering

RegCF continued to support a wide range of offering types in 2024, with equity deals dominating but debt and revenue-share deals maintaining a strong presence:

• Debt and revenue-share offerings (32% of 2024’s total) reflect the flexibility RegCF provides for issuers.
• However, the majority being equity deals highlight investor interest in ownership stakes in growth-stage companies.

Checks Written: A Barometer for Investor Sentiment

In 2024, 210,000 checks were written into crowdfunding deals, highlighting steady investor participation but falling significantly short of the industry’s peak of 538,000 checks in 2021. While the volume remains well above the formative years of the industry, this decline underscores the impact of broader macroeconomic challenges.

The collapse of Silicon Valley Bank, a venture capital pullback, surging inflation, lingering supply chain disruptions, and rising interest rates collectively tempered investor enthusiasm for writing checks. Despite these headwinds, the steady participation demonstrates the enduring appeal of crowdfunding, particularly for post-revenue and larger issuers who continue to attract robust investor interest.

Economic Ripple Effects: A 10x Multiplier

The economic impact of crowdfunding is undeniable. Since its inception, We estimate RegCF companies have reinvested $26 billion into the economy. For every $1 invested, businesses generate a 10x economic multiplier, spurring local growth through job creation, supply chain activity, and community reinvestment.

The 2024 contribution was particularly impactful, with businesses reinvesting billions in goods and services while supporting employment across a range of industries. This multiplier effect is a compelling argument for policymakers and economic development offices to expand access to crowdfunding.

Looking Ahead: Optimism for 2025

As the industry enters 2025, optimism abounds. The incoming administration has signaled a focus on revitalizing America’s entrepreneurial engine, and proposed regulatory changes promise to democratize access to capital further.

Sherwood Neiss, Principal at Crowdfund Capital Advisors, captures the sentiment: “Crowdfunding isn’t just about raising money—it’s about creating ecosystems of innovation, jobs, and intergenerational wealth. By empowering everyday investors to become owners, we’re fundamentally reshaping the economy and ensuring opportunity flows to every corner of the nation.”

This year also marks the release of Investomer, a book exploring the economic rationale behind investment crowdfunding. By turning customers into investors, crowdfunding is creating a new class of participants who drive not only financial returns but also economic and social impact.

To Wrap Up

2024 was a defining year for crowdfunding. From near-record capital raised to valuation growth and job creation, investment crowdfunding proved its value as an economic engine and a tool for democratizing wealth.

As we move into 2025, the opportunities for crowdfunding—and its impact—have never been greater. For entrepreneurs, investors, and policymakers alike, the call to action is clear: embrace crowdfunding as a vital tool for driving innovation, creating jobs, and building a stronger economy.

The foundation is set. Now, it’s time to build the future.