Netcapital (NASDAQ:NCPL) is exiting online capital formation or securities crowdfunding. Netcapital was founded by Jason Frishman in 2014 as a FINRA-regulated funding portal.
In a recent company statement, Netcapital stated it was moving away from online capital formation, “as it plans to evolve from a transaction-based capital formation marketplace into a comprehensive, data-driven capital markets infrastructure platform.”
At the beginning of 2026, Netcapital announced it was shifting its strategy to capitalize on tokenization and listing its first tokenized offering.
Netcapital, under the leadership of new CEO Todd Violette, said it is pivoting to leverage its most valuable asset: data from private capital campaigns generated through online capital formation. Violette said they are “fundamentally changing how Netcapital creates value.”
Part of the transition will be to incorporate artificial intelligence to create tools to help others raise funding.
Netcapital said they are in the early stages of developing these new tools, providing the following bullets on how they expect to progress:
- Engineering AI components to identify success patterns across historical campaign data
- Restructuring operational infrastructure to support data-centric product development
- Exploring strategic acquisitions that align with our data-infrastructure vision
- Building a team capable of executing on both regulated capital markets operations and technology product development
Violette said the transition will take time.
Netcapital lost over $28 million in 2025, booking an operating loss of $8.3 million while taking an impairment charge of almost $20 million. Its last profitable year was 2023.
Netcapital became a public company in 2020 via a merger with ValueSetters. The valuation at the time was $20 million.
In 2022, Netcapital raised approximately $5 milion as it moved from OTC Markets to the Nasdaq.
Today, Netcapital is trading at around $0.38 a share with a market cap of just over $3 million.