Reg CF 2023: Top Platforms and Year in Review

Summary of "Reg CF 2023: Top Platforms and Year in Review"

The article from KingsCrowd, titled "Reg CF 2023: Top Platforms and Year in Review," provides a comprehensive analysis of the Regulation Crowdfunding (Reg CF) landscape for the year 2023. Key highlights include:

• In 2023, Reg CF companies raised a total of $420 million, a slight decrease from $423 million in 2022. Since 2018, a total of $1.7 billion has been raised under Reg CF.

• The top platforms were Wefunder ($132 million) and StartEngine ($117 million), which together accounted for 59% of all Reg CF dollars raised in 2023. Dealmaker Securities and Republic were also significant players.

• A total of 1,434 companies launched new raises in 2023, with a 79% success rate in hitting their minimum goals.

• The average successful Reg CF raise in 2023 was $366k, achieved in about 4 months, with an average investment of $1,190 from around 408 investors.

• Reg A companies raised $225 million in 2023, about half of the Reg CF total.

• The article also discusses the economic and geopolitical uncertainties of 2023, including the impact of interest rate hikes and the collapse of FTX, and how these factors influenced Reg CF investments.

Thought-Provoking Questions and Insights

1. Impact of Economic Uncertainties: How did the economic and geopolitical uncertainties of 2023, including interest rate hikes and the collapse of major financial entities like FTX, affect investor confidence and behavior in the Reg CF market?

2. Platform Dominance: With Wefunder and StartEngine dominating the Reg CF market, what implications does this concentration have for competition and innovation within the crowdfunding space?

3. Future Trends: Considering the slight decrease in total capital raised in 2023 compared to 2022, what trends might we expect for Reg CF in the coming years, especially in the context of evolving economic conditions?

Detailed Insights and Direct Links from "Reg CF 2023: Top Platforms and Year in Review"

Investor Behavior and Platform Trends

• Investor Check Sizes: The average investor check size varied across platforms. Dealmaker Securities had the highest average check size at approximately $2,000. Most top platforms ranged from $1,000 to $1,500. This is an increase from 2022, suggesting a trend towards higher-quality deals.

• Economic Conditions Impact: The harsher economic conditions of 2022-2023 might have led to a departure of fair-weather investors, leaving more serious investors who are willing to invest in down markets. This could indicate a shift towards higher-conviction investments.

• Private Accredited-Only Offering Programs: Several top platforms launched private accredited-only offering programs in 2023, like StartEngine Private and Republic Deal Room, reflecting a focus on quality over quantity.

Average Raise Size by Platform

• Variation in Capital Raised: There was a significant variation in the average capital raised per successful raise across platforms. Small business platforms like Honeycomb and Mainvest, while having similar average check sizes to others, raised less on average per deal.

• Dealmaker Securities' Performance: Dealmaker Securities had the highest average capital raised per successful raise, though with fewer Reg CF raises compared to other top platforms.

Regulation A Offerings in 2023

• Reg A vs. Reg CF: Reg A offerings, attracting later-stage companies, raised $225 million in 2023, a 42% drop from 2022. This contrasts with Reg CF's relative stability, suggesting a shift in how companies approach fundraising.

• Notable Reg CF Utilization: Some large companies like Boxabl and Substack used Reg CF in 2023, highlighting its benefits beyond capital raising, such as turning customers into investors.

2023 Investment Crowdfunding Summary

• Reg CF's Resilience: Despite economic uncertainties, Reg CF raised $420 million from over 300,000 investors in 2023. This demonstrates its potential to increase access to capital and provide alternative investment opportunities with minimal fraud.

• Industry Challenges: The article notes challenges in valuation adjustments to the macroeconomic environment and the need for more successful examples in the Reg CF industry.

For direct access to more detailed information, you can visit the full article.