According to Pitchbook data, global crowdfunding exploded from $8.61 billion in 2020 to $113.52 billion last year – a 1,021% increase.
The US market alone doubled year on year through Regulation CF and A+, with much higher numbers being raised and over 32% oversubscribed, according to SEC (Securities & Exchange Commission) filings.
A recent analysis of key US private equity crowdfunding platforms such as Wefunder and Republic showed their top 50 most invested Regulation CF (raises of up to $5 million) crowdfunding offerings raised more than $171 million in November alone from over 113,000 investors – an average of $1,315 per investor – while December tracked at similar levels going into the holiday season.
In the Regulation A+ category, where private companies can raise up to $75 million annually, SEC EDGAR filings for 2021 show 343 US-based high growth private issuers raised $8.6 billion in total. The peak months for Regulation A+ capital raises were November and December, suggesting that 2022 will double the amount raised last year.
Regulation CF and Regulation A+ public offerings complemented each other throughout the year. While April was the lowest capital raising month, the sector surged in late summer, and November closed as the highest month. December in the US now looks like it may have matched or exceeded November.
The market is also expected to expand significantly in 2022 and 2023 as regulated alternative secondary market trading platforms, known as ATSs, start to offer more potential liquidity in a private securities market set to grow from $7 trillion in 2021 to $30 trillion in 2030, according to Forbes.
On these positive statistics, Paul Stannard, Chairman of the World Digital Foundation, said, “With global crowdfunding achieving another record-breaking year in 2021, 2022 should once again be an excellent year for the sector and can achieve even more significant figures.
“Crowdfund Insider, and the World Digital Foundation’s latest webinar series aims to prepare and inform potential investors and private companies raising or looking to raise capital for the ever changing and growing $7 trillion private securities market, as well as the global crowdfunding market forecast to grow by nearly $200bn by 2025.
“Webinar series attendees will learn about the intricacies of the US and other international crowdfunding markets as well as trends changing the global investment industry of disruptive fintech innovation, including investment crowdfunding, blockchain, and other forms of Fintech.”
The first webinar of this 2022 investment and crowdfunding series, The Importance of Compliance, will occur on Tuesday, 22nd February at 1 PM CT (Central Time). Register for this first webinar here, or register for our monthly newsletter and 2022 investment and crowdfunding webinar series.