Kingscrowd, a data and analytics company for online capital formation, recently published its Q1 2026 update, which highlights a softer market for investment crowdfunding under Reg CF and Reg A.
Currently, there is no comprehensive data on Reg D offerings, which many platforms support, so these data points, while helpful, do not provide a complete perspective. Many platforms support Reg D investment opportunities, both primary offerings and secondaries.
Previously, CI covered a separate report that focused just on Reg CF. This report aligns with the Kingscrowd numbers for the smallest securities exemption that enables online capital formation.
According to the report, Reg CF cratered by 29% when compared to Q1 2025.
Reg A dropped dramatically by 45% when compared to Q1 2025.
The report states:
“Reg CF saw the sharper decline, with capital raised falling from roughly $101.9 million in Q1 2025 to $72.4 million in Q1 2026, a 29% drop. Reg A+ also came in lower year over year, declining from roughly $191.3 million to $105.6 million. On the surface, that reads like a 45% drop.”
Kingscrowd explains that during the first quarter of 2025, Newsmax completed a blowout Reg A security offering that quickly traded on the Nasdaq after the money was raised, creating an opportunity for investors to capture a significant gain on the listing. If you laser out Newsmax and the $75 million funding round, the decline is less dramatic. Still, a 9% drop shows softness in the Reg A offering marketplace.
Some additional perspective provided by the report indicates that the Reg CF marketplace saw fewer raises and dollars raised, but the average raised increased, along with the average size of investor commitment. So, perhaps, fewer offerings but improved issuers.
New offerings under Reg CF dropped as well during Q1 2026 by 42% from 286 in 2025 to 165 in 2026.
As for the top platforms, DealMaker was the big winner for Reg A offerings, booking $62,720,473 in Q1 2026. StartEngine was in a distant second at $12,280,884. These two platforms were followed by Texture Capital at $10,993,336 and Energea Funds at $10,679,263. Of note, Texture’s amount was largely due to a single raise.
Interestingly, Republic raised no funds using Reg A during the quarter.
For the Reg CF marketplace, Wefunder led with $20,359,264 raised, followed by DealMaker at $18,093,786 and StartEngine at $15,486,929. Interestingly, Honeycomb Credit, once consistently a Reg CF top 5 platform, declined – probably due to less interest in online loans, which is its specialty.
In total, DealMaker was the big winner, garnering the lion’s share of the Reg A-Reg CF market at around $80.9 million. StartEngine followed at $27.8 million and Wefunder at $20.4 million.
Kingscrowd describes the Reg A-Reg CF market as remaining “constructive” and maybe a “reset quarter.” Still, it is hard not to notice the declining activity under these two securities exemptions. This could be prescribed due to competition for people’s investment options. The rise of prediction markets and the hot AI market has generated a ton of interest from venture capital firms.
As for updates to online capital formation emanating from Washington, D.C., much of the oxygen inside the beltway has been sucked out by the delayed crypto market infrastructure legislation, the CLARITY Act. Updates to online capital formation rules could help reinvigorate the securities crowdfunding sector, but if this happens, it will probably be during the second half of the year.