Celebrating a Milestone: Investment Crowdfunding Soars Beyond $2 Billion!

We’re thrilled to announce a groundbreaking achievement that redefines the landscape of investment crowdfunding: the industry has crossed the remarkable $2 billion investment milestone. This momentous event holds profound significance, not only as a numerical accomplishment but as a testament to the strength of a community driven by innovation, diversity, and transformative potential.

  1. Proving the Skeptics Wrong: The $2 billion milestone shatters misconceptions about crowdfunding’s reach and influence. It highlights the unwavering belief of a dynamic investor community, including customers who champion businesses they love, tech disruptors, and visionary entrepreneurs who are breaking traditional molds. This achievement demonstrates that geographical boundaries are no longer barriers, as businesses outside Silicon Valley, New York, Boston, and Los Angeles thrive and attract substantial investments.
  2. Rapid Evolution: The industry’s journey from $1 billion to $2 billion investment is a testament to its rapid growth. What took over five years to achieve in the first billion happened in just under two years for the second. Over 6,400 companies have filed to raise funds, conducting an astonishing 7,400 offerings with an unprecedented 69% success rate. With over 110 registered funding portals and increasing broker participation, the industry’s evolution showcases its dynamism and resilience.
  3. Unveiling Diversity: While software, tech, and media companies have dominated equity funding, sectors like restaurants and personal services are thriving in the debt sector. Investment crowdfunding empowers a diverse array of businesses in over 580 industries, fostering innovation and generating substantial economic impact.
  4. Driving Forces: Key players like Wefunder, StartEngine, Republic, and more have fueled this growth, alongside the Securities and Exchange Commission which elevated the fundraising cap from $1 million to $5 million. Their contributions have empowered entrepreneurs, especially women and minorities, to access capital free from traditional biases.
  5. Economic Transformation: The investment crowdfunding phenomenon is changing the face of entrepreneurship. Over 85% of these businesses raise funds beyond major financial centers, pouring billions into local economies and supporting more than 400,000 jobs. The positive influence radiates through job opportunities and local commerce.
  6. Tackling Challenges: Despite progress, challenges persist. Limited media coverage hampers awareness of crowdfunding’s transformative impact, and the lack of institutional investment necessitated us to launch D3VC, a venture fund aimed at connecting venture capital with promising crowdfunding ventures.
  7. Economic Ripple Effect: These investments aren’t confined to balance sheets. Businesses funded through crowdfunding inject nearly $5B into communities, supporting jobs, salaries, and local businesses, enhancing the socio-economic fabric.
  8. Future Outlook: The investment crowdfunding industry’s rapid growth has been fueled by an organic movement, driven by word-of-mouth awareness, and platform/industry promotion. As investors and entrepreneurs experience positive outcomes, their enthusiasm spreads naturally, fostering a self-sustaining network effect. This trend is expected to persist, reshaping traditional investment approaches and democratizing access to capital, while technology advancements and evolving regulations position investment crowdfunding as a transformative force in the future of fundraising and investment.
  9. Success Stories: The journey wouldn’t be complete without standout examples like Boxable, which transformed from a $42 million valuation to an astonishing $3.4 billion, turning a $25K investment into a multi-million-dollar success.
  10. Anticipating Tomorrow: The future holds exciting prospects. Investors can expect robust returns, entrepreneurs will gain unprecedented access to engaged investor networks that also serve as marketing allies, and the public will enjoy innovative technologies and services that elevate local communities. Of course all of this could be accelerated if the SEC were to move the maximum an issuer can raise from $5M to $20M.

The investment crowdfunding industry’s journey to $2 billion is a collective accomplishment. Together, we’ve shattered ceilings and paved the way for a more inclusive, vibrant, and innovative business landscape.

Stay tuned for more updates as we continue to shape the future of investment crowdfunding!