Equity crowdfunding appears immune to market volatility, on track for its best year yet – TechCrunch

Equity Crowdfunding — or community raises, as the fundraising platforms involved prefer to call it – has grown steadily in recent years. The regulations governing the process are evolving in the market’s favor, and the withdrawal of venture funding in 2022 could be the last bit needed to finally silence the fundraising strategy’s naysayers.

This year looks set to be a monumental year for equity crowdfunding, with capital being raised through specific filings with the US Securities and Exchange Commission, including Reg CF and Reg A, from a mix of non-accredited investors.

In recent years, equity crowdfunding has shed much of the stigma that once implied that only companies not good enough for VC came up this way. Some traditional VCs have even scouted the platforms or encouraged their portfolio companies to continue the process. But with the fundraising climate now showing cloudy skies, stock crowdfunding is gearing up for a big day.

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More than $215 million was invested in startups on equity crowdfunding platforms this year through the end of May, according to the Arora Project, a Republic-owned platform that curates crowdfunding initiatives and tracks data, up from around $200 million US dollars in the same period last year. Crowdfunding campaigns raised a total of $502 million in 2021.

While that’s not a huge jump, industry players are emboldened by the growth and see room for further improvement later in the year, as crowdfunding typically sees an uptick around the fourth quarter. Equity crowdfunding appears immune to market volatility, on track for its best year yet – TechCrunch

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