Introduction: The Power of Investment Crowdfunding
The JOBS Act’s crowdfunding provisions, known as Regulation Crowdfunding (RegCF) or Investment Crowdfunding, have transformed the fundraising landscape for startups and small businesses. By enabling low-dollar offerings of securities to a crowd of interested investors, RegCF has provided a lifeline for thousands of businesses, particularly during the global pandemic. In this blog post, we’ll delve into the impressive impact of investment crowdfunding, its benefits for women and minority founders, and how it boosts local economies.
The Impressive Impact of Investment Crowdfunding
Since the launch of investment crowdfunding, over 5,200 issuers across 1,546 cities in the United States have raised more than $1.6 billion from over 1.6 million investors. These businesses support over 332,000 jobs, contribute $3.4 billion to the economy, and hold a collective enterprise value exceeding $42.5 billion. With an average raise of $374,000, a median raise of $127,000, and an average check size of $1,000, investment crowdfunding has a remarkable success rate of 67.5%.
Investment Crowdfunding as a Lifeline During the Pandemic
Throughout the global pandemic, investment crowdfunding has played a crucial role in supporting businesses that are vital to local economies. Without this alternative funding method, many businesses might not have survived, resulting in job losses and billions of dollars removed from the economy. Investment crowdfunding has proven to be a lifeline for countless entrepreneurs and small businesses during these challenging times.
Empowering Women and Minority Founders
Q3 witnessed another strong quarter for women and minority founders in investment crowdfunding. These groups raised 50% of all capital for the quarter and exceeded the industry-average successful funding rate. In total, 55% of all offerings had at least one woman or minority founder. Among minority founders, 16.9% were African American, with offerings occurring across 48 states, Puerto Rico, and the US Virgin Islands. African Americans raised $4.3 million, with a median raise of $57K, and were 57% more inclined to use debt instruments over equity.
Boosting Local Economies and Job Creation
Investment crowdfunding has been instrumental in fueling local economies and job creation. By providing a more accessible fundraising method for startups and small businesses, RegCF has enabled them to secure the capital needed for growth, job creation, and economic stimulation. The success of investment crowdfunding in supporting local economies highlights its potential as a powerful tool for sustainable economic development.
Investment Crowdfunding – A Game Changer for Businesses and Communities
Investment crowdfunding has emerged as a powerful force for empowering women and minority founders, supporting local economies, and providing a lifeline for businesses during the pandemic. With impressive impacts and a strong track record of success, RegCF is revolutionizing the fundraising landscape for startups and small businesses. Embrace the potential of investment crowdfunding and unlock new opportunities for your business and community. Join the movement today @https://bit.ly/3ZASlKj