At Crowdfund Capital Advisors, we are committed to ensuring that small businesses and startups across the United States have the capital they need to grow and thrive. Today, we’re proud to support the Empowering Main Street in America Act of 2024, a critical piece of legislation that will help expand access to capital for underserved entrepreneurs, especially women and minority founders who continue to face barriers in the financial system.
This new bill builds on the bipartisan success of the JOBS Act of 2012, which transformed the way small businesses raise funds through mechanisms like Regulation Crowdfunding (Reg CF). As a tool that democratizes capital formation, Reg CF has been a game-changer for many entrepreneurs who have been historically excluded from traditional funding networks, such as venture capital (VC) and banks.
Who We Are: The Data Behind Our Insights
At CCA, we conduct extensive research, analysis, and reporting on the crowdfunding industry through our proprietary data platform, CCLEAR. CCLEAR allows us to gather comprehensive data on crowdfunding campaigns, track success rates, and monitor the performance of businesses using Reg CF. This data is crucial to understanding how Reg CF is affecting the landscape of entrepreneurship in the U.S., especially for those who have historically struggled to access capital.
Our research shows that women and minority entrepreneurs, in particular, have thrived under Reg CF. In the past year alone, 40.7% of all Reg CF campaigns involved at least one woman or minority founder. Not only are these entrepreneurs participating at higher rates, but they are also seeing strong success. Women-led campaigns, for example, boast a 66.6% success rate, higher than white male and minority male founders. This success translates into real economic impact, with these businesses driving job creation and revenue growth in communities across the country.
Why the Empowering Main Street Act is Important
The Empowering Main Street Act of 2024 addresses one of the biggest challenges facing small businesses today: access to capital. While venture capital is often concentrated in specific regions and networks, Reg CF has made it possible for entrepreneurs from all backgrounds and regions to connect with investors and raise the funds they need to grow. This bill strengthens that ecosystem by reducing regulatory barriers, increasing transparency, and ensuring that investors are protected.
The bill is particularly important for women and minority entrepreneurs, who are some of the most underserved groups in the financial system. Venture capital, for example, allocates only 2% of its funds to women and minority founders, compared to the 23.5% of Reg CF funds directed toward these groups over the past year. This stark disparity highlights why Reg CF—and by extension, the Empowering Main Street Act—is so vital.
In addition to expanding access to capital, this bill promotes community-driven investment. Research shows that 80% of investors in Reg CF campaigns come from an issuer’s first-degree network—meaning that many of the people investing in these businesses are customers, community members, and supporters who are directly connected to the company’s mission. This approach fosters strong ties between businesses and their communities, giving entrepreneurs not only financial backing but also a dedicated base of support. This is particularly impactful for women and minority founders, who often face systemic barriers to accessing traditional investor networks.
Real Economic Impact
The data is clear: businesses funded through Reg CF are not only raising capital—they are creating jobs and contributing to local economies. Over the past year, 31.2% of all jobs created by Reg CF-funded companies came from businesses led by women and minority founders. These businesses also saw average revenue growth of 19%, showing that when given the opportunity, underrepresented founders have the ability to grow and sustain thriving businesses.
Even more impressive is the long-term success of Reg CF-funded businesses. Only 6.5% of women- and minority-led companies funded through Reg CF have closed within their first five years, compared to 17.8% of all Reg CF companies and 50% of U.S. companies overall, according to the Bureau of Labor Statistics. Furthermore, 24.4% of women- and minority-led companies have gone on to raise follow-on financing, proving that these businesses are not just surviving—they’re excelling.
Moving Forward: A Call to Action
The Empowering Main Street in America Act of 2024 is a vital piece of legislation that will further strengthen the ability of all entrepreneurs—especially women and minority founders—to access the capital they need to succeed. By supporting this bill, Congress will ensure that more Americans have the opportunity to grow their businesses, create jobs, and contribute to the overall health of the U.S. economy.
At CCA, we will continue to advocate for policies that promote inclusive capital formation and work to close the funding gap for underserved entrepreneurs. Through CCLEAR, we will keep gathering the data needed to provide insights and highlight the impact of crowdfunding on the broader economy.
We urge Congress to pass the Empowering Main Street in America Act, a bill that will have a lasting impact on the future of American entrepreneurship.
