Crowdfund Capital Advisors Launches Index Tracking Private Company Investments

Crowdfund Capital Advisors (CCA) has announced a new index designed to track daily online capital-raising activity of private U.S. companies.  The data is available via Bloomberg’s Alternative Data Platform.

This index is calculated based on the capital investments received by the 50 daily highest-raising private issuers that meet specific criteria and are listed on Crowdfund Capital Advisors’ data platform.

CCA states that almost 4,000 securities offerings are included in the dataset with approximately $18 billion in market value.

CCA says that unlike other SME indices theirs ranks the top-performing issuers by capital commitments. The index is designed to be a barometer of investor sentiment across industries and geographies.

Alex Nagel, CCA Analyst, said the Index has grown year after year with increases from 2020 to 2021 being remarkable.

“We are regularly observing index values during FY 2021 that are twice as high as the year prior. This is a strong indicator of growth within the crowdfunding industry, including accessibility, availability, and investors bullish on getting involved with some great companies.”

Sherwood Neiss, Principal at Crowdfund Capital Advisors, said the Index is a way to measure economic recovery during the COVID health crisis:

“This index is one way to monitor local and regional economic recovery by tracking investor sentiment. We can see peaks and troughs that correlate to unique offerings, seasonality and even the impact of COVID. For instance, in the 12 months leading up to the pandemic the index average was 127.2, since the onset of the pandemic the average rose 215% or 146 points indicating greater investor interest in support SMEs across the country. The low point for the index was 23 on March 15, 2020 when our economy shut down. And the high point was exactly one year later on March 15, 2021 when it hit 3,986 after the new rules went into effect”

CCA currently collates real-time offerings from over 50 securities-based crowdfunding platforms.

“By looking at the index we’re able to gain a better understanding of just how much money is being raised every day through crowdfunding by the top companies in the industry,” says Sophie Dessart, CCA Analyst.  “Over time, we can see whether investors are putting more or less money into the market, giving us an idea of investor sentiment and the perceived potential of the companies currently raising funds.”

Jason Best, Principal at Crowdfund Capital Advisors, said not only will users be able to gauge economic impact and job creation, but they also believe the next unicorn may be one of the companies represented in the index.

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