| Yesterday Crowdfund Capital Advisors’ principals Sherwood Neiss and Jason Best joined Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council and Jeff Lynn, Executive Chairman and Co-founder of Seedrs in the UK to talk about the Main Street Co-Investment Fund.
You can watch the replay by clicking the image above.
Investment crowdfunding is gaining momentum and offers a practical solution that Congress or the Federal Reserve can immediately utilize to efficiently and effectively deploy capital to local businesses in diverse communities across America. In this video we discuss the proposed Main Street Recovery Co-Investment Fund and the United Kingdom’s successful experience using the co-investment model both pre and during the Covid era.
The democratization of capital is truly taking hold through investment crowdfunding, which allows small business owners to more efficiently identify and access investors and capital using SEC regulated platforms. “Supercharging” this proven, fraud-free method of raising capital through a federal co-investment fund will help local small businesses recover, rebuild and reinvent themselves in the aftermath of COVID-19. The co-investment fund is a successful model that is currently being deployed in the U.K. (through the Future Fund). The Main Street Recovery Co-Investment Fund would match the capital raised by small businesses on SEC-regulated platforms.
On September 16, SBE Council and Crowdfund Capital Advisors released the report, Regulation Crowdfunding by Congressional District: A Report Card, which reviews the progress of investment crowdfunding since 2016 and its capability for meeting the significant capital needs of Main Street business and entrepreneurs during and following this challenging period.
As noted in the report, more than 90% of U.S. House congressional districts (393 districts) have had investment crowdfunding offerings, with 700,000 retail investors participating in these diverse offerings across the United States. The average raise per offering is $342,000. Community-focused investing is delivering significant capital to local businesses, and the amount of capital being raised via debt and equity crowdfunding has increased considerably during COVID-19. There has been no fraud reported by the SEC with investment crowdfunding. |
