Crowdfund Capital Advisors (CCA), founded by Jason Best and Sherwood (Woodie) Neiss, has announced the launch of CCA Regulation Crowdfunding Indices win conjunction with Crowdnetic. CCA states their data will be updated daily to depict a snapshot of growth in this new market. Crowdnetic has previously announced other crowdfunding based metrics.
Reg CF was created by Title III of the JOBS Act. The new securities exemption became available for issuers on May 16, 2016. Neiss and Best played an instrumental role in the JOBS Act legislation and helped to push the law over the finish line back in 2012.
According to CCA, their initial data is just what they expected:
- slow progression of offerings and a rational approach by investors.
- A couple of campaigns have already hit their funding targets and closed.
- One campaign, Beta Bionics that makes a wearable medical device that autonomously manages blood sugar levels in people with diabetes hit the maximum $1 million funding cap from 780 investors.
CCA states there have been 70 companies that have registered their offerings with the SEC on 14 different funding portals. By their count, these companies have a total of 271 current employees buttressing their hypothesis that crowdfunding may be a net job creator.
California is at the top of the list for both issuers and total capital committed. CCA also points to the fact that Beta Bionics, having easily hit their $1 million top target indicates there is a demand and need to raise the Reg CF limit to $5 million or more.
CCA states that”slow and steady wins the race.” Reg CF is growing similar to Title II, accredited crowdfunding, actionable in the fall of 2013.