The U.S. Securities Crowdfunding market ended Q2 mixed but showed impressive gains over the prior year. More issuers, more capital, more jobs, more revenue generating companies seeking capital, steady valuations, greater investment in certain industries (due to COVID), and average raises increasing as the new $5M cap implemented by the SEC in March went into effect.

Here’s the summary:

• Number of offerings were up 3% over Q1 but investor commitments were down 15% and number of investors were down 21%. That being said offerings were up 46% over the same period, investor commitments were up 175% and investors were up 46%.
• The Online Investment Index peaked in March after the new SEC rules increased the maximum raise to $5M. Investments began to trail with the index hitting a low the week of May 30th and have steadily increased since. The Index is up 213% over 2020’s average.
• The number of pre-revenue issuers increased 6% over Q1 and 84% over the prior period. The number of revenue generating issuers increased 25% over Q1 and was flat over the prior period. 53% of all issuers in 2021 are revenue generating.
• Across all successfully funded offerings, valuations were flat from Q1 to Q2. As well as from the same period in 2020.
• Total enterprise value of firms that closed offerings in Q2 was up 74.5% over Q1 and up 81.5% over the same period. Total enterprise value of all successfully funded issuers is $25B. 1.2% of successfully funded issuers had valuations over $100M. Those issuers collectively had an enterprise value of $4.5B.
• Food distribution, staffing & outsourcing, marketing services, soft drinks and real estate all saw greater than 100% growth in investments from Q1 to Q2.
• Number of million dollar offerings was up 33% over Q1 as well as 33% over the prior period. 14.3% of offerings that exceeded $1M raised the maximum of $5M.
• Jobs supported increased 18.4% over Q1 and 56.8% over the prior period.