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This is an ongoing series of articles. Reviews from years: 2019, 2020

Looking to understand more about the alternative equity funding portal market for 2022? I will break down the data we collect to share some insights on the growing market. The goal is to help you source deals and lower the fees you pay. This industry has re-define early-stage startup investing, where I look to point you to where the future opportunity lies.

Why Regulated Equity Crowdfunding

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Equity Crowdfunding in the US can be separated into two major categories. Those for wealthy, or accredited, and those that are not wealthy enough in the SEC's eyes, or non-accredited.

Non Accredited Equity Funding


Non-accredited is also known as Regulated Equity Crowdfunding, campaigns that were launched under  regulations like Title III of the Jobs Act (aka Reg CF). Access to startup businesses offering shares at an early stage was limited to friends and family. That has changed and you, or anyone, can now invest in these high growth startups.  The data we cover is focused on these non-accredited offerings.

Market Size

EquityMultiple put out a great report for 2022 showcasing alternative market insights, in which they cite CAIA data suggesting Private Equity totaled $6.5 Trillion in investable assets.

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EquityMultiple CAIA Alternative Market Report 2020

In the same EquityMultiple report they showcase the weighting in the alternative markets being heavily on institutional investors and not individuals. I believe that platforms like EquityMultiple, Wefunder, AngelList, etc. will balance this mix giving more individuals like me and you improved access.

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EquityMultiple individuals vs institutional

Narrowing in all of Private Equity down to just Venture, According to Pitchbook and NVCA for 2021 year end deal value exceeded $300 Billion and fundraising topped $100 Billion.

 

1st Half 2022

I will break down the regulated equity crowdfunding data from the start of 2022, to end of June. We will update this to include Q3 around when that data is released.

Top Platforms

StartEngine appears to be leading the race in total number of offerings, at 348, with Wefunder not far behind.

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1st half 2022 Top Platforms

 

Who is Achieving Success

We are looking into the Other classification of Asset type founders are using to raise money. Convertible notes I believe fall in this category for now.

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Asset types 2022 1h

Top States

Not surprising California has seen the most startups raising capital on platforms. Though Florida and Texas outpacing MA differs from traditional VC rankings by state.

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Top States Funding 2022 1H

Top Cities

Though California is the top state, I believe due to the spread of commercial real estate across all Silicon Valley San Fran comes in second. New York taking the top spot and my native Boston coming in at the 7th spot for most companies to start raising capital.

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Top Cities 2022 1H

In order to stay up to date with the latest data you can review the the live Dashboard that will be available for free for a limited period as we continue to build something you may find helpful. I welcome feedback and guidance as to what would be most valuable to you. If you are willing to take the time to write in I am happy to grandfather you into the GA launch, providing future access after the product is officially released.

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