If you’re a founder who raised capital under Regulation Crowdfunding (Reg CF) and thought your SEC reporting obligations ended after your campaign closed—or after filing one annual report—you’re not alone. But if you filed a Form C-TR to end those obligations, there’s a good chance you did it too soon or didn’t qualify to file it at all.
That’s a growing problem.
What Is Form C-TR?
Form C-TR is the termination of reporting notice. It’s how a Reg CF issuer formally tells the SEC and investors: “We’re done filing annual reports.”
But you can’t file it just because your campaign ended. Under Rule 203(b)(2) of Reg CF, you can only file Form C-TR if:
You’ve filed at least one Form C-AR, and
One of these conditions is met:
You have fewer than 300 shareholders of record,
You’ve repurchased all Reg CF securities, or
Your company is no longer in business.
That’s it. There are no other valid reasons to file a C-TR.
⚠️ The Common Mistakes
Many issuers mistakenly assume they can file a Form C-TR:
Shortly after their raise closes, without understanding the ongoing reporting requirements,
Without checking whether they have fewer than 300 shareholders or have repurchased all Reg CF securities,
Or while still actively operating, thinking that the end of the raise automatically ends their obligations.
These assumptions often lead to premature or invalid Form C-TR filings, leaving issuers out of compliance without realizing it, which can:
Disqualify them from future offerings, and
Damage credibility with platforms, investors, and regulators.
📌 Filing Another Form C After a C-TR? You Just Reopened the Reporting Obligation.
If you previously filed a C-TR and then launch a new Reg CF offering, your reporting obligation restarts. That means:
You must file new Form C-ARs annually starting with the next fiscal year-end,
And you must file another C-TR later if you want to terminate reporting again—once you qualify.
Filing one C-TR doesn’t exempt you forever.
✅ What to Do Now
Check your last Form C-TR. Did you meet the conditions?
If you’re still operating or have >300 shareholders, you likely filed too soon.
Coordinate with your platform or legal advisor to assess whether a new Form C-AR is required to get back into compliance.
Form C-TR is not just a formality—it’s a legal step with strict eligibility criteria. Filing it incorrectly could invalidate your compliance record and block future capital raises.
We’re here to help Reg CF issuers and platforms navigate these traps. For more guidance or to audit your reporting history, visit CrowdfundCapitalAdvisors.com or reach out directly to info@theccagroup.com.
👉 And if you missed it, check out our recent article on Form C-AR non-compliance, another major issue catching founders off guard.
If your company has raised capital through Regulation Crowdfunding (Reg CF), chances are you’ve filed a Form C to launch your campaign. But what many issuers don’t realize—or overlook—is the obligation that follows: filing a Form C-AR, your annual report.
And here’s the uncomfortable truth: a significant number of issuers are currently out of compliance with this basic but critical requirement.
💡 What Is Form C-AR?
Form C-AR is the annual report that Reg CF issuers are required to file with the SEC and make publicly available to investors. It includes updated financials and a narrative about the business. Its purpose is simple: to ensure investors receive ongoing transparency after they invest.
Under Rule 202(b)(1) of Reg CF, issuers must file this report no later than 120 days after the end of their fiscal year. For companies with a calendar year-end, that means April 29 is your annual deadline.
🧾 Why So Many Are Missing the Mark
In theory, the rules are straightforward. In practice, many issuers:
Don’t realize they need to file Form C-AR at all;
Assume the obligation ends when the offering closes;
Believe a single filing is enough;
Or file late, rendering the filing non-compliant.
Even more concerning, some companies continue raising on Reg CF while already out of compliance—a clear violation of SEC rules.
❌ The Risks of Non-Compliance
If you’re not current on your C-AR filings, the SEC considers you non-compliant. The consequences include:
Being barred from future Reg CF offerings (until compliance is restored);
Loss of investor trust;
Potential regulatory scrutiny;
Risk to your platform’s reputation.
Per Rule 100(b)(7), you cannot raise capital via Reg CF if you haven’t filed all required ongoing reports.
✅ What You Should Do Now
Check your last Form C-AR filing date. If it’s been over a year and you’re still active, you likely owe a new one.
Know your fiscal year-end. Your 120-day deadline is based on it.
File Form C-AR even if your offering ended. The obligation doesn’t automatically disappear.
Work with your platform or compliance advisor to create a simple reporting calendar.
If your company is unsure about its status or needs help filing, don’t wait. Falling out of compliance can undo all the momentum you’ve built.
Reg CF is an incredible tool for democratized capital—but with it comes the responsibility of transparency. Filing your C-AR isn’t just a checkbox; it’s a signal to your investors and the market that you’re serious about accountability.
For more insights on Reg CF compliance, platform trends, and real-world fundraising data, visit cclear.ai or reach out directly.
👉 Stay tuned: we’ll publish a follow-up post about Form C-TR — the most misunderstood form in Reg CF reporting.
Reflections from the Angel Capital Association Annual Meeting – April 2025
Yesterday, I had the opportunity to speak at the Angel Capital Association’s Annual Meeting in Denver. As always, the room was full of experience, intelligence, and passion for early-stage investing. The panel underscored what I’ve heard from others in the community: there remains some hesitation among traditional angels when it comes to investment crowdfunding.
For many traditional angels, crowdfunding remains suspect—deals are too promotional, valuations are too high,and due diligence is too thin. I understand the skepticism. But I believe many are missing the broader shift happening in the private markets.
We are in the middle of a structural transformation in how startups raise capital—and how investors can and should participate. Three movements are driving this shift:
1. Regulation Has Expanded Access
With the passage of the JOBS Act and the creation of Regulation Crowdfunding (Reg CF) and Rule 506(c), companies now have legal avenues to publicly solicit investment from both accredited and retail investors. These tools have made capital formation more inclusive—and more transparent.
2. Technology Has Rewired the Capital Stack
Entrepreneurs are increasingly turning to online investment platforms as their first stop for raising capital. These platforms enable broader outreach, faster investor commitments, and rich data streams. For investors, this means easier access—but also a new set of filters to apply.
3. Traditional Capital Is Moving Later-Stage
We’re seeing a pullback from venture capital and traditional angels at the earliest stages. The risk appetite has narrowed. This has created a funding gap that is being filled by retail investors—over $3 billion to date—through regulated online platforms.
These changes are not theoretical. They are happening now. Every week, thousands of investors are committing capital to startups online—many of which would never have passed through a traditional syndicate.
Seeing the Wheat Through the Chaff
The common critique of investment crowdfunding is that it’s full of noise. And that’s true—there are many deals that aren’t investor-ready. But let’s be honest: traditional deal flow has the same issue. We all pass on deals that turn out to be winners. The crowd does, too.
The real shift is that we now have new tools to separate signal from noise—and they’re improving every day.
The Data Advantage
For the first time in early-stage investing, we have access to real-time, trackable data on deal performance, investor behavior, and market sentiment. Through platforms like CCLEAR, we can monitor:
Capital flow and investor participation across offerings
Momentum indicators like time-to-close and number of checks written
Follow-on activity and issuer performance over time
These are not just new metrics—they’re new ways to build conviction.
A Practical Path Forward
Investment crowdfunding doesn’t replace traditional angel investing—it enhances it. As angels, we have sector knowledge, pattern recognition, and networks that retail investors don’t. But the crowd brings data, scale, and community.
When we blend the two, we create a more robust, informed investing model. One that’s better suited for today’s decentralized, digital-first startup economy.
Angel investing is evolving. The companies we want to support are raising differently. The next generation of winning deals may not come through a warm intro or a pitch dinner—they may come through a platform, with traction already proven by a hundred small checks.
The train has left the station. The question isn’t whether to get on board—it’s how far behind you want to be.
On March 31, 2025, Crowdfund Capital Advisors submitted a letter to the House Financial Services Committee urging strong support for a series of bills aimed at expanding access to capital through investment crowdfunding.
These bills—particularly the Improving Crowdfunding Opportunities Act, the ACCESS Act, the SEED Act, and various proposals to modernize the accredited investor definition—represent practical, bipartisan steps to support entrepreneurship, innovation, and job creation without compromising investor protection.
We know this industry better than anyone. CCA co-authored the original investment crowdfunding framework alongside Congressman Patrick McHenry and spent more than 460 days in Washington D.C. helping pass the bipartisan JOBS Act in 2012. Since then, we’ve built the only 100% complete and continuously updated dataset tracking Regulation Crowdfunding—more robust than what even the SEC maintains.
Our data proves that this market is working exceptionally well:
$3B+ raised by over 8,100 companies
2.1 million investments made
430,000+ jobs created or supported
$14.7B in enterprise value built
Over $27.1B in total economic stimulus
This is capital flowing into underserved communities, rural towns, and emerging startup cities—not just Silicon Valley or Wall Street.
What We’re Asking Congress to Do
The legislation under review would modernize Regulation Crowdfunding and remove key barriers to scale:
✅ Raise the Reg CF cap to $10M—or ideally, $20M ✅ Lower compliance costs for small businesses via the ACCESS Act ✅ Introduce the SEED Act for micro-offerings ✅ Enable secondary trading and support GUARDD as a national compliance framework ✅ Expand the accredited investor pool based on knowledge, not wealth ✅ Exempt trusted “finders” from broker-dealer registration ✅ Increase the Reg A+ cap to help scaled companies remain in compliant pathways
These updates reflect how the industry has matured: 60% of issuers are now post-revenue, demonstrating that Reg CF is attracting stronger, less risky companies.
But There’s One Big Thing Missing: Tax Incentives
We also proposed something not currently on the table—but urgently needed: the Early-Stage Investment Tax Incentive for Crowdfunding (ESTI-CF).
This proposed federal policy would allow investors to:
Write off 50% of their investment in eligible Reg CF companies
Deduct 100% of their investment if it’s in a distressed, rural, or opportunity zone
Avoid capital gains tax if they hold the investment for at least 5 years
This model has proven successful in countries like the UK and Canada. It pays for itself through economic growth and ensures capital reaches regions and businesses that need it most.
We invite Members of Congress, regulators, and the public to read our full letter here and review our supporting materials:
If Congress is serious about revitalizing American entrepreneurship, now is the time to modernize Reg CF—and consider bold, pro-growth ideas like ESTI-CF.
For questions or support, contact us anytime. We’re proud to continue leading the data, policy, and advocacy agenda for this critical part of the U.S. capital markets.
Regulation Crowdfunding (Reg CF) offers an exciting avenue for startups and small businesses to raise capital directly from the public. However, success in a Reg CF offering comes with certain ongoing responsibilities, chief among them being the legal obligation to keep investors informed about the business’s progress and financial health. This is where the Form C-AR, or the annual report, becomes crucial.
Understanding Form C-AR
Form C-AR is an annual report that issuers who have successfully raised funds through Regulation Crowdfunding must file with the SEC. This document helps maintain transparency by providing investors and the public with up-to-date information on the company’s financial status and operational developments. It typically includes updated financial statements, a discussion of the business’s operations and financial condition, and details on the use of the funds raised.
Step-by-Step Guide to Filing Form C-AR for Free
Before Filing: Preparation is Key
Gather Financial Statements: You will need to compile financial statements for the most recent fiscal year. If your total annual gross revenues or the total offering amount from all securities offerings in the past 12 months are less than $124,000, your company’s principal executive officer can certify them. If they are between $124,000 and $618,000, they must be reviewed by an independent public accountant. If they are over $618,000, they may need to be audited. Download the free step-by-step guide to see which category you fall in.
Update Business Information:
Summarize significant business activities and operational milestones achieved during the year.
Discuss any known trends, demands, commitments, or events that are likely to affect your financial condition.
Report on the progress of specific projects funded through the crowdfunding campaign.
Outline the Use of Proceeds:
Detail how the funds raised have been used in comparison to the previously disclosed plans.
If there are deviations from the planned use of proceeds, provide a rationale for these changes.
Filing on EDGAR:
To continue, download the instructions for free.
Don’t want to do it yourself? Hire us! Our fee for this service is $450. Email: sales@theccagroup.com for more information.
Today’s congressional hearing on capital formation reinforced an important truth: Regulation Crowdfunding (RegCF) and Regulation A (RegA) are working. These mechanisms are fueling economic growth, creating jobs, and unlocking opportunities for everyday investors and entrepreneurs alike.
Yet, despite clear data showing their success, critics like Alexandra Thornton from the Center for American Progress continue to spread misinformation and fear, uncertainty, and doubt (FUD) about private market investing. Let’s address these concerns head-on.
Myth: 90% of Startups Fail—So Expanding Investment Access is Risky
While Andrew Barnell pointed to studies suggesting that 90% of startups fail, the real issue is why they fail—and that’s exactly what RegCF and RegA help solve.
According to CB Insights, lack of access to capital and running out of money are the two biggest reasons startups fail. RegCF and RegA directly address this problem by providing new funding pathways that allow entrepreneurs to raise capital from their communities, customers, and everyday investors.
Moreover, data from the Annual State of the Investment Crowdfunding Industry Report reveals that companies raising funds through RegCF have a failure rate of just 21.7%—far lower than the widely cited 90% figure. Investment crowdfunding is actively reducing startup failure rates, not increasing them.
Myth: Private Markets Are Risky and Opaque
Thornton’s claim that private investments lack transparency and investor protections is broad and flat-out false. RegCF and RegA require businesses to file financials, business plans, risk factors, and ongoing reporting with the SEC—all of which protect investors and create a level playing field.
“Thornton’s testimony is a textbook example of fear-mongering and a complete misrepresentation of the facts,” said Sherwood Neiss, Principal at Crowdfund Capital Advisors and author of Investomers – How Customers Turned Investors is Reshaping Early-Stage Finance. “If she actually understood these regulations, she’d realize that RegCF and RegA don’t reduce investor protection—they enhance it by giving everyday Americans access to vetted investment opportunities under a structured, transparent framework.”
In reality, traditional venture capital and private equity deals may offer far less transparency than crowdfunding, where disclosures are public and accessible to all investors.
Myth: Expanding Access to Private Investments Will Lead to More Fraud
Thornton warns of fraud risks in private markets, but doesn’t substantiate her claim with data. The SEC, FINRA, and funding portals actively monitor RegCF offerings, ensuring strict compliance and investor protections.
“The idea that investment crowdfunding is a Wild West is absurd,” said Neiss. “The regulatory framework is strong, the platforms are diligent, and investors are protected. There is no widespread fraud in investment crowdfunding—it’s a well-regulated and thriving industry.”
Myth: Private Markets Only Benefit Wealthy Investors
Thornton suggests that private market expansion benefits insiders at the expense of retail investors. In reality, RegCF and RegA are democratizing access to capital across the country, not just in major cities like New York and San Francisco.
RegCF has enabled fundraising in over 2,000 towns across the U.S., ensuring that small businesses in underserved communities can raise capital from their supporters. This isn’t just about entrepreneurs—it’s about giving everyday Americans the ability to invest in the businesses they believe in.
McKeever Conwell emphasized this during the hearing: “For too long, underrepresented founders have been shut out of traditional funding. Crowdfunding is changing that, allowing great businesses to raise capital from their communities and thrive.”
Rebecca Kacaba, CEO of DealMaker, highlighted another major advantage: “When customers become investors, they don’t just bring dollars—they bring loyalty, advocacy, and network effects that drive long-term success.
The JOBS Act Was a Bipartisan Success—Let’s Keep It That Way
Let’s not forget: The JOBS Act, which created RegCF and RegA, passed the House in 2012 by a vote of 407-17—one of the most bipartisan bills in recent history. Both sides of the aisle agree that expanding access to capital is good for the economy.
Instead of rolling back these successful programs, Congress should focus on expanding them. The data is clear:
✅ Crowdfunding is working. ✅ It’s driving job creation and economic growth. ✅ It’s supporting women, minority, and underserved founders. ✅ It’s reducing failure rates for small businesses. ✅ It’s creating wealth-building opportunities for everyday investors.
It’s time to build upon this success, not restrict it. Instead of limiting investor access, policymakers should focus on expanding opportunities—so more Americans can participate in our nation’s entrepreneurial growth.
2025 Investment Crowdfunding Report: Capital Markets Are Evolving—Are You Ready?
Capital markets move in cycles, with peaks and valleys shaping investment trends. As venture capital remains sluggish, investment crowdfunding is stepping in—not as a temporary fix, but as a lasting force in private markets.
The 2025 Investment Crowdfunding State of the Industry Report offers a data-driven analysis of how the market continues to grow, attract accredited investors, and solve critical private capital pain points. Liquidity is now on the horizon for thousands of crowdfunding investors holding billions in unrealized returns.
Key Takeaways from the 2025 Report
Accredited Investors Drive Record Capital Deployment – Despite a slowdown in broader private markets, investment crowdfunding in 2024 saw near-record capital inflows. While the total number of investors declined, accredited investors stepped in, writing the largest checks yet. Frustrated with VC inaction, they directly funded issuers and backed new early-stage venture funds (like D3VC) that are investing in the ecosystem.
Investomers Are Reshaping Early-Stage Finance – Crowdfunding investors are no longer just passive backers. They are customers, brand advocates, and long-term stakeholders, aligning their capital with the companies they believe in.
Liquidity Is on the Horizon – RegCF investors are sitting on billions in unrealized returns. With platforms exploring secondary trading and new liquidity solutions, policy shifts could accelerate investment crowdfunding’s role in unlocking private market liquidity.
Investment Crowdfunding Is Solving Private Market Gaps – At a time when venture capital remains stalled, investment crowdfunding is filling the gap, spreading capital across the country, spurring innovation, and creating jobs. Policy advancements could further scale this impact.
Investment Crowdfunding Has Proven Its Resilience
Markets evolve. Venture is in a valley, but investment crowdfunding has weathered multiple cycles—and grown stronger each time.
Investors aren’t waiting for VCs to return. They’re deploying capital directly into startups, fueling the next wave of innovation, creating tens of thousands of jobs, and driving billions in economic impact. The next phase is unlocking liquidity, ensuring that investment crowdfunding continues to scale as a transformative force in private capital markets.
Get Your Free Copy Today
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📊 Over 200 pages of exclusive research and analysis. 📉 Nearly 100 data visualizations tracking industry shifts. 💡 Insights on accredited investor trends and capital movement. 🔄 Updates on liquidity solutions and secondary market developments. 📈 Policy recommendations to enable investment crowdfunding’s full potential.
For decades, two forces controlled consumer behavior and capital markets:
Madison Avenue dictated traditional marketing, crafting polished ad campaigns that shaped what people bought.
Wall Street analysts from Citibank, Goldman Sachs, and JPMorgan dominated public company valuations, providing research and investment recommendations that moved markets.
But in the digital age, social media influencers have replaced Madison Avenue, dictating trends and driving mass purchasing decisions—whether it’s the latest viral Dubai chocolate or entire industries, like fast fashion or fitness tech.
However, no equivalent has existed for private companies raising capital online—until now.
Enter the Influvestors: a new class of social media influencers who are also investors, using their platforms to showcase why they invested in a company, what makes it great, and why others should take notice. These are not just passive shareholders—they are investomers (customers who invest) who actively contribute to a company’s success.
The Evolution of Investment Crowdfunding & Why Influvestors Matter
Investment Crowdfunding is scaling rapidly. Today, around 1,500 companies raise funds annually. But as we expand to 3,000 or 5,000 startups per year, investors will face an overwhelming number of choices.
Traditionally, investors relied on Wall Street analysts to identify opportunities. But in the investment crowdfunding world, no such structured research exists for early-stage private companies.
AI-driven venture funds like D3VC (full disclosure: I’m a GP in the fund) are leveraging machine learning models to tackle this problem, identifying promising companies at scale. But AI alone isn’t enough—it lacks the human element of consumer trust, community, and virality.
That’s where Influvestors step in.
Why This Isn’t Just Another Hype Machine
Skeptics might say this sounds like the perfect pump-and-dump opportunity. However, RegCF offerings require a one-year holding period, eliminating short-term speculation. Plus, securities laws and anti-fraud protections still apply, ensuring a level playing field.
Unlike traditional influencers who get paid per click, Influvestors’ financial success is directly tied to the company’s long-term performance. They aren’t just contracted promoters—they are investor relations agents with skin in the game, focused on growth, brand awareness, and increasing company value.
The Future: Community-Driven Investing & Market Awareness
For startups, the biggest challenge isn’t just raising capital—it’s market awareness. Even great businesses struggle to reach enough customers and investors. Influvestors solve this problem by creating viral content that not only fuels investment rounds but also drives real sales.
As investment crowdfunding scales, this convergence of influence, investment, and market-making will define the next wave of startup success.
Wall Street had its analysts. Madison Avenue had its ad agencies. The next evolution belongs to the Influvestors.
(Want to stay ahead of the crowdfunding revolution? Follow us for more insights!)
Family offices, long the cornerstone of private equity and venture capital, are at a crossroads. While investments in Silicon Valley and Wall Street remain staples, a burgeoning trend in investment crowdfunding offers a compelling opportunity for diversification, localized impact, and direct engagement with the innovation economy. With its unique combination of accessibility and potential, investment crowdfunding is fast becoming a strategic asset for sophisticated investors.
Since its establishment under the JOBS Act in 2012, Regulation Crowdfunding (Reg CF) has built a foundation for a new era in private investment. Nearly 8,000 companies have leveraged crowdfunding to raise over $2.7 billion across 10,000 funding rounds. Unlike venture capital, which is concentrated in a handful of metropolitan hubs, investment crowdfunding spans 2,750 cities nationwide, fueling innovation and economic development in communities that have traditionally been underserved by institutional capital. The companies funded through these efforts have an estimated collective valuation of $90 billion and are injecting an impressive $27.1 billion into local economies.
This phenomenon is reshaping the American entrepreneurial landscape. Crowdfunding platforms, such as Wefunder, StartEngine, and Republic, enable businesses to connect directly with investors, bypassing many of the barriers that have historically limited access to capital. For family offices, this democratization of investment presents an opportunity to diversify portfolios in previously inaccessible ways.
Emerging sectors such as renewable energy, biotech, and fintech thrive in the crowdfunding ecosystem, providing entry points into innovative industries. Additionally, many of the seeds of artificial intelligence (AI) integration in technology are being planted within this space. From AI-driven diagnostic tools in healthcare to predictive analytics in energy efficiency and advanced automation in fintech, the early adoption and experimentation with AI are flourishing among startups leveraging investment crowdfunding. These innovations not only attract investors seeking high-growth potential but also position crowdfunding as a gateway to technologies that are shaping the future of global industries.
The geographic diversity of crowdfunding (much like the family offices themselves) should appeal to family offices with a focus on community development or ESG mandates. By investing in businesses tied to specific regions, family offices can foster local economic growth while aligning their financial strategies with their values. The multiplier effect of these investments—supporting local jobs and contributing to regional economies—further underscores the potential of this asset class.
Beyond its financial benefits, investment crowdfunding offers a unique educational opportunity. It provides a platform for teaching younger generations in family offices about wealth creation and intergenerational wealth transfer. Crowdfunding investments serve as a practical way to introduce heirs to the fundamentals of startup growth and scaling—demonstrating how businesses evolve with the right combination of capital, expertise, and relationships. These investments, with their smaller check sizes, allow families to explore early-stage opportunities at a lower risk threshold while fostering a deeper understanding of long-term investment strategies and the principles of smart investing.
For family offices seeking a more streamlined entry into this burgeoning ecosystem, investment funds like D3VC.ai provide a compelling solution. (Disclosure: I am a General Partner at D3VC.) These venture funds leverage artificial intelligence (AI) and machine learning (ML) to analyze thousands of crowdfunding offers, identifying what we believe are the most promising investments based on data-driven insights. By investing in such funds, family offices can gain exposure to the crowdfunding market without the need to evaluate 10,000 individual offerings directly. It’s an efficient and scalable way to diversify while benefiting from cutting-edge technology applied to investment diligence. While D3VC is one example, it highlights a growing trend of funds leveraging advanced tools to make the investment process both rigorous and accessible.
Unlike venture capital, which often requires substantial upfront commitments, investment crowdfunding allows for smaller investments spread across a wide portfolio. This flexibility enables family offices to experiment with new sectors, mitigate risk, and gain exposure to a broad spectrum of opportunities. Furthermore, crowdfunding platforms provide direct access to entrepreneurs, offering a level of engagement rarely available through other investment channels. For family offices with a hands-on approach, this fosters deeper connections and the ability to influence outcomes through mentorship or co-investment.
Critics of crowdfunding often view it as a domain for retail investors, but the data tells a different story. Institutional players are increasingly participating, and platforms are adapting to meet their needs. Many campaigns now integrate co-investment opportunities, blending smaller public contributions with larger institutional commitments to amplify their impact.
Regulative protections also bolster the investment crowdfunding sector, ensuring that both issuers and investors operate within clearly defined parameters. For family offices, this means entering a vibrant but well-regulated space.
With investment crowdfunding rapidly maturing, family offices have a unique window to integrate this asset class into their broader investment strategies. For those ready to take the next step, D3VC and similar funds provide a strategic entry point, delivering curated opportunities and advanced insights. Additionally, Crowdfund Capital Advisors offers a wealth of resources to help family offices navigate the investment crowdfunding landscape. From data-driven insights to tailored capacity-building events, CCA can help individual family offices explore how crowdfunding aligns with their goals, deepen their understanding of the ecosystem, and implement strategies for long-term success.
Investment crowdfunding isn’t just an alternative—it’s a bridge to the next wave of private investment, one that prioritizes innovation, broad-based economic growth, and meaningful education for the next generation of family leaders. For family offices ready to lead rather than follow, the time to act is now.
As 2025 begins, the financial world reflects on a transformative year for investments. In 2024, crowdfunding investors recalibrated their strategies, favoring industries with proven resilience while pulling back from sectors seen as speculative or overextended. The result was a dramatic reshuffling of winners and losers across the economic landscape.
Healthcare emerged as a standout performer, with investments nearly doubling compared to 2023. Biotechnology breakthroughs and life sciences innovations commanded significant attention, driven by the dual promise of societal impact and strong financial returns. Among the year’s top healthcare performers was Koios Medical, which blends artificial intelligence with medical diagnostics to reduce errors and improve outcomes. Koios raised nearly $1.26 million from retail investors on Wefunder while simultaneously securing $8 million from institutional backers on the same terms. This dual approach highlights a growing trend of parallel offerings in investment crowdfunding, where issuers seek funding from both retail and institutional investors to maximize their reach and capital.
CCLEAR Data as of 12/31/2024 – CCLEAR is a Division of Crowdfund Capital Advisors, LLC
Energy and Utilities also surged, with investments nearly doubling year-over-year as the sector benefited from technological advancements and efficiency gains. Among the leaders was Pytheas Energy, which uses AI and machine learning to enhance oil and gas production. This focus within Energy and Utilities highlights how artificial intelligence is driving innovation and optimizing traditional energy systems. Their campaign on Equifund demonstrated how crowdfunding can amplify opportunities even in legacy industries by tapping into investor interest in technological innovation.
Real estate found renewed favor among investors as declining interest rates and financing unlocked new opportunities. Arrived, a platform allowing fractional investment in rental properties, raised an extraordinary $32.5 million from retail and institutional capital. The company syndicates offerings into individual properties, turning customers into investors—a model that aligns user incentives and democratizes real estate ownership. Notable investors in Arrived include Jeff Bezos, Marc Benioff (CEO at Salesforce), and Dara Khosrowshahi (CEO at Uber).
While these sectors thrived, others struggled to maintain momentum. Technology, once the darling of venture capital and crowdfunding alike, faced a sharp downturn. A nearly 42% drop in investment reflected broader corrections in tech valuations, as investors grew wary of speculative startups. Similarly, industries like e-sports and gaming, education and training, and space exploration experienced significant declines, revealing a pivot away from high-risk, long-horizon opportunities.
A common theme among the year’s success stories was the strategic use of artificial intelligence. From healthcare to energy, AI has proven to be a transformative force, attracting capital across diverse sectors. This trend mirrors developments in public markets, where AI-focused companies saw significant funding inflows. Additionally, the growing convergence of retail and institutional capital—evident in parallel offerings like those of Koios and Arrived—aligns with broader shifts in the financial ecosystem, such as the inclusion of private assets in traditionally public investment vehicles like ETFs.
As 2025 unfolds, the trends of 2024 are likely to shape the contours of the economy. Industries that capitalize on technology and strategic innovation may look to consolidate their gains, while others may face the challenge of adapting to an era defined by cautious optimism and an appetite for scalable, impactful ventures.
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.”
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
(C) Crowdfund Capital Advisors, CCLEAR Data as of 12/31/24
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.
Why Regulation Crowdfunding Is Transforming Early-Stage Capital Formation
In the ever-evolving world of finance, crowdfunding has often been dismissed by traditionalists as a novelty—a niche solution for entrepreneurs unable to crack the fortress of venture capital or private equity. Some critics have gone so far as to label Regulation Crowdfunding (Reg CF) as “bottom of the ladder” finance, alleging it lacks credibility and fails to deliver meaningful capital to businesses. These criticisms ignore the hard data that tell a very different story.
Reg CF is not a second-tier financing option. It’s an innovative model that has democratized access to capital, spurred job creation, and even caught the attention of venture capitalists. With millions raised annually and a clear upward trajectory in both the size and sophistication of deals, crowdfunding is rapidly cementing its position in the financial mainstream.
The Data: A Narrative of Growth
Since its inception under the 2012 JOBS Act, Reg CF has grown from an experimental initiative into a vibrant marketplace. One of the clearest indicators of its success is the steady increase in average deal sizes. In 2016, the first year of operation, the average raise was just over $300,000. By 2023, that number had more than doubled to $670,000, and projections for 2024 suggest an average raise of $730,000.
This growth isn’t an anomaly. It reflects the maturation of the ecosystem, with entrepreneurs leveraging the platforms to secure increasingly significant funding for high-potential ventures. It also reflects growing trust from investors who recognize the opportunity to back early-stage companies outside traditional channels. These aren’t signs of an industry in decline; they’re proof of one on the rise.
Data from CCLEAR.ai
Venture Capital: A Growing Player
One persistent myth is that crowdfunding operates in isolation, divorced from the “serious” world of venture capital. The numbers paint a different picture. While VC participation in Reg CF deals was negligible at the outset—just one deal in 2020—it has grown exponentially. In 2023 alone, 81 deals included VC participation, and the trajectory for 2024 is even steeper, with 122 deals already showing VC involvement.
This uptick isn’t just about volume; it’s about validation. Venture capitalists are known for their meticulous due diligence and selective investments. Their increasing involvement in crowdfunding deals underscores the quality of the opportunities being created. Platforms like Wefunder, Republic and StartEngine have evolved into credible deal pipelines for institutional players, bridging the gap between grassroots funding and high finance.
The growth in VC participation also signals a shift in how investors view crowdfunding. It’s no longer a siloed option for bootstrapped entrepreneurs but a legitimate avenue for building scalable, high-growth companies.
Data from CCLEAR.ai
Serving Rural America: An Overlooked Triumph
Another critical success story of Reg CF lies in its ability to reach underserved markets—particularly rural areas. When crowdfunding began in 2016, just 3.2% of funded deals came from rural regions. Today, that figure has more than doubled to 7.2%.
This increase demonstrates how crowdfunding is breaking down geographic barriers that have long hindered entrepreneurs outside major urban centers. While traditional venture capital tends to concentrate in tech hubs like Silicon Valley or New York City, crowdfunding platforms are connecting rural innovators with a national base of investors. This not only provides vital capital to overlooked regions but also fosters economic resilience and innovation where it’s needed most.
By enabling rural entrepreneurs to access funding, Reg CF is fulfilling its promise of democratizing capital and proving its value in ways that traditional finance simply cannot replicate.
Success Metrics: A Better Measure
Critics often seize upon minimum funding targets (MFTs), arguing that artificially low thresholds inflate success rates and obscure the true efficacy of crowdfunding. While it’s true that many campaigns set modest initial goals to ensure compliance with regulatory frameworks, this critique misses the forest for the trees.
The real measure of success lies in the total capital raised. As the data shows, both total amounts and average deal sizes are climbing steadily. This indicates that businesses are not just meeting their goals—they’re exceeding them. To dismiss crowdfunding based on MFTs is akin to dismissing IPOs because some companies start with modest valuations. The end result—the capital raised—paints a far more compelling picture of impact.
Data from CCLEAR.ai
The ultimate measure of success in any investment model lies in exits and returns. Now, eight years into Regulation Crowdfunding (Reg CF), we’re beginning to see these outcomes materialize. Early signs suggest the potential for significant wealth generation for both entrepreneurs and investors.
One compelling data point highlights this potential. Issuers who initially raised funds through Reg CF and subsequently conducted follow-on rounds—excluding those that transitioned to traditional Reg D offerings, meaning this is likely a conservative estimate—have seen their unrealized value increase by a staggering $17.9 billion. This growth underscores the transformative power of crowdfunding in creating and scaling value within startups.
As more of these exits occur and unrealized gains are realized, it will become clear that Reg CF is not just a stepping stone for entrepreneurs but a powerful engine of wealth creation for investors who believed in these businesses early. The era of life-changing returns through crowdfunding is no longer a distant promise—it’s becoming a tangible reality.
Economic Impact: Beyond the Numbers
Crowdfunding’s contributions extend far beyond the balance sheet. By democratizing access to capital, it has empowered diverse entrepreneurs and stimulated local economies. Small businesses in rural areas, minority founders, and first-time entrepreneurs—groups historically underserved by venture capital—have found crowdfunding to be a lifeline.
This inclusivity has ripple effects. Crowdfunded businesses generate jobs, pay taxes, and contribute to community growth. They purchase goods and services, invest in marketing, and hire talent, creating a virtuous cycle of economic activity.
And it’s not just small businesses that benefit. Crowdfunding fosters innovation in industries ranging from biotech to clean energy, driving solutions to some of society’s most pressing challenges. By lowering barriers to entry, it enables breakthroughs that might never receive traditional funding.
The Future Is Crowdfunded
Dismissive critiques of Reg CF ignore the data and the broader trends shaping finance. Far from being “bottom of the ladder,” crowdfunding has redefined what’s possible in early-stage funding. It has delivered on its promise of democratizing capital, created pathways for underrepresented groups, and won the endorsement of venture capitalists.
As we move into 2025, the trajectory is clear. Crowdfunding isn’t just a viable option—it’s an essential one. Critics may cling to outdated perceptions, but the numbers—and the success stories—speak for themselves.
Crowdfunding has climbed the ladder of finance, and it’s not stopping anytime soon.
