Regulation Crowdfunding (Regulation CF) allows small business owners and start-ups to raise up to a $1 million dollars from friends, family and a wider investor pool. Regulation CF went into effect in May 2016 and already it is doing what it was designed to do: create jobs.
Notable statistics from the past year include:
- Out of the 186 crowdfunding campaigns launched, 79 succeeded.
- 21,000 individual investments were made—an average of $833 per investor.
- $17.9 million given in total to the successful campaigns.(VB Research)
Nearly $20 million went to start-ups and job creation, helping to nudge the U.S. economy along. According to Sherwood Neiss, principal at Crowdfund Capital Advisors, “Regulation CF creates about 2.2 jobs per funding company.” It can be seen as early success for the founders of the 2012 JOBS act.
If you are a business owner considering a capital raise, check out our latest webinar “How to Prepare for Your Title III Capital Raise,” or visit http://breakawayfunding.com/videos and sign up to view other presentations on raising capital, exit strategies, investing and more.