Sherwood Neiss on the Evolution of Finance

Investment crowdfunding is evolving and taking on a new role in the capital formation roadmap. Sherwood Neiss, principal at Crowdfund Capital Advisors, discusses this change.

Where is Crowdfunding in the USA

The crowdfunding sector is currently thriving, supported by regulations such as Reg A+, Reg CF, and Reg D, which facilitate innovative fundraising approaches. This webinar provides a comprehensive analysis of recent developments in these regulations, explores the emerging trend of fractional investing, and examines the impact of technology on the future of online capital formation.

Sherwood Neiss on the Real Deal Podcast

Hey there, fellow innovators and dreamers! I’m thrilled to share with you the latest insights from the frontier of financing in our newest podcast episode. As your guide through the ever-evolving landscape of investment, I had the pleasure of sitting down with the brilliant Mr. Woody, a maestro in the realms of crowdfunding and venture capital (VC). 🚀 Crowdfunding: The Game Changer We dove deep into how crowdfunding isn’t just a buzzword—it’s revolutionizing how startups and pre-IPO businesses are turning their visions into reality. Imagine raising up to $5 million, not from faceless corporations, but from your own community of supporters. That’s the power of crowdfunding, and it’s reshaping the way entrepreneurs think about capital. 🌐 Building a Community of Backers Mr. Woody illuminated the shift from solo ventures to creating a thriving ecosystem of backers. This isn’t just about money; it’s about fostering brand advocates who amplify your message and drive your business forward. And guess what? Venture capitalists are taking notice. 💡 Merging Investors with Brand Advocates The lines between customers and investors are blurring. We discussed how turning your customers into investors can create a legion of passionate supporters who are invested (quite literally) in your success. 🔍 Attracting Investors to Your Cause Before you launch your crowdfunding campaign, listen in as we reveal the strategies to build your crowd, from leveraging social media to connecting with angels and VCs who share your vision for innovation. 🔮 The Future of Crowdfunding and VC The landscape is changing, and VCs are joining the crowdfunding party. We explored how this synergy could democratize early-stage financing and give more people a chance to be part of the next big success story. 🤝 A Shift in VC Perception We wrapped up with a look at how VCs are warming up to crowdfunding, recognizing the caliber of companies emerging from this space. It’s an exciting time to be an entrepreneur, and the opportunities are boundless. I can’t wait for you to join us on this journey of discovery. Tune in to the episode and let’s explore the possibilities together. If you’ve got a deal brewing, reach out—your story could be the next feature on our show!

Sherwood Neiss on Fintech Friday

In this enlightening episode of Fintech Fridays, Season 4, Episode 62, host Craig Asano, founder and CEO of NCFA Canada, sits down with the distinguished Sherwood ‘Woodie’ Neiss, a pioneer in the investment crowdfunding industry and an advisor to NCFA. Together, they delve into the evolution of investment crowdfunding, its impact on startups and investors alike, and the potential for future growth. Woodie shares his journey, from the inception of crowdfunding regulations to leading the charge with data-driven insights and AI technology in investment strategies. Listeners will gain an insider’s perspective on the latest developments, the significance of data in shaping the industry, and the role of technology in advancing investment opportunities. Whether you’re an investor, entrepreneur, or fintech enthusiast, this episode offers a comprehensive look into the dynamic world of investment crowdfunding, revealing how it’s reshaping the landscape of finance and opening new doors for innovation and growth.

The Triumph of Regulation Crowdfunding: A Call to Strengthen Our Entrepreneurial Ecosystem

In the decade since the JOBS Act of 2012 introduced Regulation Crowdfunding (Reg CF), we’ve witnessed a transformative shift in startup financing. This innovative funding mechanism has democratized access to capital, empowering a diverse array of entrepreneurs and invigorating the American economy. The success stories are numerous, with over $2 billion invested across thousands of companies, nurturing innovation, fostering job creation, and driving economic growth.

For instance, restauranteur Hawaiian Bros was able to raise over $3 million through Reg CF, enabling it to expand its operations and create and support an estimated 7,200 local jobs in and around its locations. Similarly, Boxabl secured over $16 million in funding. Boxabl, much like Ford in its pioneering days of assembly line manufacturing, is revolutionizing the housing industry by standardizing and streamlining the production of foldable, transportable homes, thereby making housing more accessible, efficient, and scalable. Their technology is a breakthrough that has the potential to revolutionize the housing industry.

Reg CF has proven to be a vital tool for small businesses, offering a lifeline to many during economic uncertainties. It’s a testament to the resilience and ingenuity of the American entrepreneurial spirit. The process allows startups to secure funding while building a community of supporters, all under a regulatory framework designed to protect investors and promote transparency.

As we look to the future, it’s crucial that we build on this success.

Strengthening Reg CF and Access to Capital

The introduction of the “Expanding Access to Capital Act” (H.R. 2799) and its passage by the U.S. House represent a pivotal opportunity to enhance and expand Reg CF’s impact.

(Read SBE Council’s Statement of Support for H.R. 2799, which covers its key measures here.)

H.R. 2799 is designed to further democratize access to capital, enabling more small businesses to secure the funding they need to innovate, expand, and compete in a global marketplace. By supporting this legislation, Congress can ensure that more small businesses have the resources they need. It’s not just about funding; it’s about fostering a robust ecosystem where startups can thrive, innovate, and contribute to a vibrant and inclusive economy.

The data speaks volumes. Investment in Reg CF offerings has shown consistent growth ($19.6M in 2016 to over half a billion in 2023), signaling strong investor confidence and a thriving market for early-stage investment. The average raise amount ($173K in 2016 to $437K in 2023) and the success rate of campaigns (51% in 2016 to 63% in 2023) have steadily increased, indicating a maturing market that attracts serious entrepreneurs and committed investors.

However, the potential for Regulation Crowdfunding is far from fully realized. With Congressional support for H.R. 2799, we can unlock new opportunities for growth, innovation, and job creation. H.R. 2799 is a forward-looking initiative that adapts our regulatory framework to the evolving needs of the modern economy. It recognizes the increasing importance of alternative financing mechanisms in a digital age and seeks to enhance the effectiveness and reach of Reg CF, ensuring that the United States remains a global leader in entrepreneurship and innovation.

Supporting H.R. 2799 is more than a legislative action; it’s a commitment to the future of American entrepreneurship. It acknowledges the role small businesses play in driving innovation, creating jobs, and enhancing our global competitiveness. By backing this bill, Congress can provide a catalyst for sustained economic growth and a more prosperous future for all Americans.

The success of Regulation Crowdfunding underscores the importance of innovative financial mechanisms in supporting economic growth and entrepreneurship. Now is the time for Congress to act, and for the Senate to follow the lead of the House by advancing H.R. 2799. The bill will not only boost the availability of capital for startups and small businesses, it serves to reaffirm a commitment to America’s small businesses and an inclusive and vibrant economy. Let’s seize this opportunity to strengthen our entrepreneurial ecosystem and pave the way for the next wave of American innovation and prosperity.

Sherwood Neiss is a principal of Crowdfund Capital Advisors, and one of the key players in introducing the idea of regulated crowdfunding to Congress and the White House and subsequent passage of the JOBS Act of 2012.

This Week in Crowdfunding | Recapping What Happened in February w/ Woodie and Yvan

Sherwood Neiss appears on The Next Big Thing to discuss Regulated Investment Crowdfunding February results.

Platform Trends that are Impacting Issuers and Investors

Sherwood Neiss appears on an expert panel taking a look at the regulations set by the SEC and FINRA along with the pending legislations in Congress, and the platform trends that are impacting issuers and investors.

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

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

In the ever-evolving world 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 focusing 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

2023 Year in Review: A Comprehensive Insight into Investment Crowdfunding

The 2023 Annual Report is an indispensable resource for anyone involved in or interested in the investment crowdfunding sector. Written by the team that co-authored the framework for regulated investment crowdfunding and launched the industry, this 150-page comprehensive report delves deep into the industry’s dynamics over the past year, providing critical data and analysis that make it an essential read for stakeholders.

One of the report’s key highlights is its detailed examination of the financial trends and investment patterns that shaped the crowdfunding landscape in 2023. It covers a wide range of metrics, from the total amount of capital raised to the average investment sizes, giving a clear picture of the market’s health and trajectory. Particularly notable is the discussion on median valuations, which saw significant fluctuations throughout the year, influenced by broader economic conditions and sector-specific developments.

The report also offers insights into the geographic distribution of crowdfunding activities, identifying hotspots of growth and regions where the market may be underpenetrated. This geographic analysis is crucial for investors and entrepreneurs alike, as it highlights emerging opportunities and markets ripe for expansion. In addition, the report hones in on the use of regulation crowdfunding by women and minorities, highlighting a number of deals, capital raised, average investors, and more.

Moreover, the “2023 Year in Review” sheds light on the regulatory environment that continues to evolve, impacting how companies can raise funds and how investors can participate in crowdfunding ventures. The discussion on regulatory changes provides valuable context for the financial data presented, helping readers understand the external factors influencing market movements.

This annual review is celebrated as the most important piece of industry research published each year due to its depth and breadth of coverage. It not only provides historical data and year-on-year comparisons but also forecasts trends and potential future shifts in the crowdfunding ecosystem. For professionals in the field, this report is not just a reflection on the past but a roadmap for the future, offering strategic insights that can inform decision-making in the coming year.

For anyone invested in the future of crowdfunding, whether from a business, regulatory, or investment standpoint, the “2023 Year in Review” is a critical tool for staying ahead in this dynamic industry.

Download a free sample of the report:

Download the full report here.

Check out the table of contents below:

Unlocking Capital: The Transformative Journey of Investment Crowdfunding in 2023