Q2 2023 Reg CF: A Dip in Deal Flow But a Resilient Market

Crowdfund Capital Advisors (CCA) has distributed a report on Q2 2023 securities crowdfunding under Reg CF. According to their data, Q2 showed “steady growth” along with a slight decrease in new deals when compared to Q1 2023. CCA says that new deals during the quarter tallied 355 with total investor commitment at $151.7 milion. Almost 99400 investors backed the online securities offerings.

CCA shares that in Q2 Wefunder was the top platform for Reg CF, raising $80.8 million through 316 new offerings. StartEngine and Republic followed at $28.4 million and $13.4 million, respectively.

At the same time, Q2 saw 403 deals closed – the second highest number since the Reg CF market commenced in 2016. Three out of four deals met their minimum funding hurdle with the average time of funding at 43 days.

The total number of deals has now topped 7,200 and post revenue firms are surpassing pre-revenue firms at a ratio of 1.64 to 1.

Q2 2023 is now the second-best investment quarter and only $72 million away from breaking the $2 billion milestone for Reg CF funding.

Interestingly, there was an increase in the number of debt offerings at 113 new offers, according to the report.

In total Q2 delivered 45 securities offerings over $1 million as issuers seek to raise larger amounts.

The estimated number of jobs created increased by 27.6K, bringing the total jobs created/supported to 336K since the industry’s inception.

Sherwood Neiss, Principal at CCA, commented on the sector activity noting the overall upward trend in investments and deals

“These findings reflect the ongoing strength and potential of the market, underpinning the positive outlook for investors and entrepreneurs alike.”


Sponsored Links by DQ Promote



Send this to a friend