October was a big month for Reg CF campaigns, according to the StartEngine Index. In fact, October booked the most money raised using the crowdfunding exemption since the rule became actionable in May of 2016.
According to StartEngine, $10.9 million in funding was raised. Until October came along, this past July held the top spot at $10.7 million. The Index indicates that Reg CF has now raised $151.7 million since inception. The Food & Beverage industry remains the most popular sector to use Reg CF followed by Tech.
The top ten Reg CF campaigns in October are as follows:
California (19%) and New York (17.9%) were the states with the most Reg CF offerings.
As for security types, Common Stock (30.2%) was the most popular offering followed by SAFEs (20.8%) and Debt (19.2%).
Many Reg CF issuers are combining the exemption with Reg D to circumvent the cumbersome requirements under the exemption such as the ridiculously low funding cap ($1.06M) and the fact that accredited investors are not allowed to invest as much as they want under Reg CF but may do so under Reg D. Hope remains that either the SEC or Congress will address the shortcomings of Reg CF and make it the exemption of preference for all.