SEC notes early Regulation Crowdfunding results
Regulation Crowdfunding finally went live in May 2016 to much fanfare. Detractors saw the beginning of a new age of fraud. Optimists saw the beginning of a free flow of capital to small companies and a flow of riches to investors traditionally shut out of private, early-stage investments.
The answer? Who knows?
What we do know is that the SEC released some early stats about how Reg CF has been doing since last May.
First, there are 21 funding portals. Each one of those portals is competing for the business of facilitating funding for private companies. It will be really interesting to see how these early-stage portals survive.
Of the 163 deals that have been initiated, 33 have been completed. There was no indication of how many are still pending or how many have been withdrawn.
The amount raised is approximately $10 million. *chicken-scratch on back of envelope to get about $300,000 per deal*
It will be educational to see if the SEC breaks out those numbers on a per-deal basis since a simple average does not tell us much.
Did one very successful deal account for a large part of the $10 million?
Did one or more deals stop at a few thousand?
How many of them are restaurants or breweries? There seems to be a lot of those when I look at the portal homepages.