Within its first three months, Regulation Crowdfunding investor commitments for campaigns that have met their minimum funding goals have surpassed $5 million, as reported by NextGen Crowdfunding.
Regulation Crowdfunding, also known as Title III or Reg CF for short, enables companies to raise up to $1M from non-accredited investors. The regulation became effective on May 16, 2016. Previously, only accredited investors who met certain financial requirements were eligible to back businesses in this manner.
Of the total 107 Regulation Crowdfunding campaigns launched in the last three months, the 17 campaigns with investor commitments in excess of their minimum investment goals (as of the time of writing) are listed below.
- Beerfit: Endurance event production company featuring America’s Beer Run – nearly $28,000
- Beta Bionics, Inc.: “Bionic pancreas” to manage blood sugar levels — approximately $1,000,000
- Cleveland Whiskey LLC: Distillery that creates speed-aged spirits in just 24 hours – nearly $300,000
- Everipedia, Inc.: A free wiki and commenting platform – nearly $70,000
- Hawaiian Ola Brewing Corporation: Local farmers produce sustainable crops –approximately $100,000
- Hops and Grain Production, LLC: Sustainable craft brewery & taproom – nearly $840,000
- Legion M Entertainment, Inc.: Fan-owned entertainment company – approximately $1,000,000
- MF Fire: A fire technology company leveraging advanced combustion science to engineer superior fire products – over $108,000
- MobileSpike, Inc.: Allows law enforcement officers to stop pursuits from the safety of their vehicle – over $112,000
- My Trail Company, PBC: Outdoor apparel and equipment company — more than $158,000
- N1CE: Packaged frozen cocktails – over $112,000
- Native Hostel Austin LLC: Upscale youth hostel – nearly $397,000 funded
- Red Bay Coffee Company: Wholesale specialty coffee, hand-roasted in Oakland, CA –over $97,000
- Shape Scale, Inc.: A scale that scans your body in 3D to show changes in your body and appearance – more than $93,000
- Slingfin, Inc.: Building a world-class outdoor brand starting from the top of Mt. Everest –over $67,000
- Snapwire: Connects mobile photographers with businesses and brands that need creative imagery – nearly $93,000
- Speakeasy: Nightclub, bar, cabaret and casino in San Francisco – over $359,000
Reg CF was created under the JOBS Act of 2012. The concept was to create an effective vehicle for smaller companies to raise capital online from friends, family and fans of the business. Investment crowdfunding has experienced world-wide recognition as an important innovation in the democratization of access to capital and investment opportunity. While still very much in its infancy, Reg CF is gaining momentum and traction as a viable funding vehicle.
The Information above was provided by of NextGen and its NextGen Dashboard . The service was created to display the progress of investor commitments and other crowdfunding industry data since the new crowdfunding regulations took effect.
Amy Wan, Esq., CIPP/US is a consultant for NextGen Crowdfunding and Partner with CrowdfundingLawyers.net (Trowbridge Sidoti LP) where she practices crowdfunding and syndication law. Formerly, she was General Counsel at Patch of Land, a real estate marketplace lending platform. While there, Amy pioneered the industry’s first payment dependent note that is secured pursuant to an indenture trustee and designed to be bankruptcy remote, and advised the company on its Series A funding round. In recognition her work at Patch, she was named as a Finalist for the Corporate Counsel of the Year Award 2015 by LA Business Journal. Amy also brings extensive experience in legal innovation and rethinking the delivery of legal services. She is the founder and co-organized of Legal Hackers LA, and was named one of the one of ten women to watch in legal technology by the American Bar Association Journal in 2014. Prior to joining Patch of Land, Amy worked in enforcement and compliance at the U.S. Department of Commerce, where she represented the United States at the WTO and participated in free trade agreement negotiations on regulatory coherence and technical barriers to trade. Amy also spent time at the U.S. Department of State and U.S. Department of Transportation as a Presidential Management Fellow. She holds an LL.M. in Public International Law from the London School of Economics and Political Science, a JD from the University of Southern California Gould School of Law, and a BA in Biological Sciences from the University of Southern California.
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