Crowdfund Capital Advisors (CCA) has distributed an update on August 2023 investment crowdfunding activity under Reg CF (Regulation Crowdfunding). According to their numbers, Reg CF offerings during the month experienced a “surge,” countering the trend in public markets, which have faltered in recent weeks.
CCA reports that there were 118 new issuers filing to raise money online, jumping from July, which booked a tepid 80 new filings. August filings were a bit below the 12-month average of 124 Reg CF filings per month. The authors of the report said the rise in filings during August was most likely due to firms looking to seek growth funding at the end of the summer as investors are more engaged following Labor Day.
During August, 107 deals closed, raising in aggregate $38.8 million – a dramatic increase from July, which booked $25.3 million. 72% of issuers hit their minimum funding goals.
CCA notes that Wefunder continues to lead the Reg CF sector in both the number of offerings and funding raised.
Post-revenue issuers raised almost half of the money (49.8%), while pre-revenue startups raised just 9.4%.
There were 20,659 individual investments made, an increase from July’s 17,411 but below the yearly average of 25,600.
While there may be fewer investments, the amounts committed have increased, reaching its second highest to $2739, according to CCA.
On another note, CCA reports that 42 offerings were launched by women and/or minority issuers, up from July’s 36. Additionally, 31% of successfully funded deals had a woman and/or minority founder, highlighting a key characteristic of online capital formation.
CCA calls Reg CF performance reflecting the sector’s resilience and potential:
“As we transition into Fall, a historically favored fundraising period, we have high hopes for the industry, but caution remains given the broader economic environment.”