Equity crowdfunding appears immune to market volatility, on track for its best year yet – TechCrunch
Crowdfunding by shares – or crowdfunding, as the fundraising platforms involved prefer to call it – has grown steadily over the past few years. Regulations operating the process of continuing to develop in favor of the market and the joint venture in 2022 funding withdraw could be the last piece of the puzzle needed to reassure those opposed to the fundraising strategy.
This year looks to be huge for equity crowdfunding, which requires raising funds through specific filings with the U.S. Securities and Exchange Commission, including Register for CF and Reg Afrom a mixture of investors do not need to be accredited.
Over the past few years, equity crowdfunding has removed much of the stigma that once implied that only companies that weren’t good enough for VCs would grow this way. Some traditional VCs have even explored the platforms or encouraged their portfolio companies to pursue the process. But with the fundraising environment now showing cloudy skies, equity crowdfunding is poised for a field day.
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More than $215 million has been invested in crowdfunding startups this year through the end of May, according to Project Arora, a Republic-owned platform that manages startups. crowdfunding initiative and tracking data, up from about $200 million in the same period last year. . Crowdfunding campaigns have raised a total of $502 million in 2021.
While it’s not a huge leap, industry players are encouraged by the growth and see more scope for improvement at the end of the year, as crowdfunding typically picks up in the second half of the year. around the fourth quarter.