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SEC Issues Progress Report on United States Title III Equity Crowdfunding Growth Rate

15 Mar

Approximately 163 separate offerings were filed by 156 issuers, seeking a total of approximately $18 million

By Robert Hoskins

Washington, DC – The SEC just released a white paper entitled, U.S. securities-based crowdfunding under Title III of the JOBS Act, which analyzes crowdfunded offerings during the first six months following May 16, 2016 when Title III, Regulation Crowdfunding become official. The SEC’s white paper, which was prepared for Scott Bauguess, the Acting Chief Economist and Acting Director of the Division of Economic and Risk Analysis (DERA), noted that the majority equity crowdfunding offerings to date have not utilized Regulation D as much as predicted.

Top 20 Title III Equity Crowdfunding Sites in U.S.

The white paper does go into great detail about five largest Title III crowdfunding portals based on the number of offerings, which accounted for 71% of the offerings launched during 2016.  The five largest Title III crowdfunding sites  also accounted for 64% of the total amount of funds raised. And while more 20 crowdfunding sites were listed, most of the offering activity was limited to 25% of active platforms in the Title III crowdfunding marketplace. And, if you ran the numbers for completed offerings, you would see that the top five largest intermediaries accounted for more than 90% of the market share.

The table below low shows the list of the Top Performing Title III Crowdfunding Portals sorted on the number of initiated offerings and then by the target amounts of the initiated offerings, excluding offerings withdrawn as of December 31, 2016.

Top 20 Title III Equity Crowdfunding Sites Ranked by Number of Offerings

Top 20 Title III Equity Crowdfunding Sites Ranked by Number of Offerings

 

Most Successful Types of Title III Equity Crowdfunding Campaigns

Many people want to know what the types of Title III crowdfunding campaigns were the most successful. Preferred Equity led the pack at 36%, followed bySimple Agreements for Future Equity at 26%, Debt at 20%, Units at 7%, Convertible Notes at 6% and Miscellaneous accounted for the remaining 5%, which included Revenue Sharing and Membership / LLC Interests.

Distribution of Title III Equity Crowdfunding Offerings

Distribution of Title III Equity Crowdfunding Offerings

 

Top States for Launching Title III Equity Crowdfunding Campaigns

Another interesting way to look at growing crowdfunding industry is to examine what states launched the most successful Title III Equity Crowdfunding Campaigns.  In the table below you can see that California/Silicon Valley launched the most Title III crowdfunding campaigns, followed closely by Texas/Silicon Hills at 19%, New York at 14%, Massachusetts and Illinois tying at 9%, Delaware, Florida, New Jersey, Oregon, and Pennsylvania bringing up the back to the pack, all with 5%.

Geographic Distribution of Title III Equity Crowdfunding

States with the Most Title III Equity Crowdfunding Campaigns

 

How Many Reg. D and Title IV, Reg. A+ Crowdfunding Offerings Result?

Because many industry experts have stated their concerns that the SEC’s decision to severely restrict the general solicitation guidelines with regards to advertising their crowdfunding deals to the masses of non-accredited investors, the white paper also took a close look at how many Title III Regulation Crowdfunding Campaigns had previously or subsequently conducted an offering under Regulation D or Regulation A.

As shown in the table below, as of January 15, 2017, approximately 15% of offerings initiated during 2016 (excluding withdrawn offerings) were by issuers that have also reported offerings under Regulation D either before or after the initial crowdfunding filing. And, approximately 3% of issuers have issued Regulation A+ filings as of January 15, 2017.

Among crowdfunding issuers, approximately 12.9% of offerings were by issuers that had filed the first Form D notice prior to the first crowdfunding filing and approximately 2.5% of offerings involved issuers that had filed a Form D notice after the first crowdfunding filing. For about 8.6% of offerings, excluding withdrawn crowdfunding offerings, a Form D filing was made within one calendar year before or after the initial crowdfunding filing. Consistent with their young age, the SEC determined that the majority of the crowdfunding issuers were more likely to be new startups rather than “fallen angels.”

Overall, these results suggest that crowdfunding is attracting issuers that have not extensively used other private offering exemptions, such as Regulation D, which is otherwise a very popular private offering exemption among similarly sized issuers as those initially availing themselves of the Crowdfunding market. The initial evidence is points to the fact that Title III, Regulation Crowdfunding is indeed providing a new source of capital for entrepreneurial and small businesses that may not otherwise have had access to capital through alternative capital raising channels.

Form D and Title IV, Reg A+ Equity Crowdfunding Offerings

Form D and Title IV, Reg A+ Equity Crowdfunding Offerings

 

The white paper also made a point of covering the following facts and figures.:

  • There were 163 separate offerings by 156 issuers, seeking a total of approximately $18 million, excluding withdrawn offerings. The median offering amount was $53,000 and the average offering amount was approximately $110,000. However, almost all of the offerings accepted over-subscriptions up to a higher amount (typically close to $1 million) for a total amount of approximately $101 million.
  • As of January 15, 2017, approximately $10 million in proceeds was raised in 33 offerings by issuers filing a Form C-U. The median amount raised in these offerings was $171,000 and the average amount raised was approximately $303,000.
  • For offerings initiated in 2016, were withdrawn by issuers or associated with an intermediary whose FINRA membership was terminated and funding portal registration withdrawn. These offerings sought a total of approximately $2.3 million (approximately $19.5 million if over-subscriptions are included).
  • Most of the offerings solicited in all states.
  • The most popular type of security was equity, followed by “simple agreements for future equity” and debt.
  • The most popular state of incorporation for issuers was Delaware and the most popular principal place of business for issuers was California.
  • The median issuer had under $50,000 in assets, under $5,000 in cash, $10,000 in debt, no revenues, and three employees. Approximately 40% of the issuers reported positive revenue and approximately 9% of the issuers reported a net profit in the most recent fiscal year. Among the issuers that reported non-zero assets in the prior fiscal year, the median growth rate was approximately 15%.
  • 21 intermediaries, including 13 funding portals and 8 broker-dealers, were involved in the offerings. As of December 31, 2016, funding portals have registered with the SEC and FINRA and one funding portal had its FINRA membership terminated and withdrew its SEC registration. The median intermediary percentage fee was 5%, and intermediaries took a financial interest in the issuer in approximately 16% of the offerings.

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Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-five years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
Robert Hoskins
(512) 627-6622
@Crowdfunding_PR


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
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Top 10 Title III, Regulation Crowdfunding Offerings Ranked on the Amount of Crowdfunding Raised

18 May

Searching for the Hottest New Title III, Regulation Crowdfunding Investment Opportunities?

For fun, we thought we would keep track of the first wave to Title III, Regulation Crowdfunding Offerings to see who has raised the most money to date. The current crowdfunding campaigns are ranked in order by the amount of money they have raised as of May 24, 2016 at 4:00 pm.

After the first week, it looks like crowdfunding campaigns with lower investment amounts far outpaced larger investment requirements.  The same is true of lower crowdfunding investment goals. For example, GameTree has a minimum investment of $100 and a fundraising goal of $100,000 and barely two weeks into their campaign they are 90% funded.

If you’d like shop around and make your first non-accredited investment in a Title III, Regulation CF offering, please review from the offers listed below.

You might also check out their company websites, their social media credentials on Facebook, LinkedIn and Twitter and then Google their founders names and companies to see what they have done to promote their company in the news media.

It will be easy to see what management teams have done the proper prep work, planned effective marketing campaigns and the others that haven’t even been able to put together a simple company website.

If they can’t build a simple website, how in the world can they run a successful business?

Here is also a quick snapshot of what Title III Crowdfunding Platforms have raised the most money:

  1.   WeFunder.com            $243,871
  2.   StartEngine                  $142,602
  3.   SeedInvest                     $74,800
  4.   NextSeed                        $26,900

Total: $461,273


1. The Legion M Entertainment (media company)

Crowdfunding Platform: WeFunder

Amount Raised: $120,611

2. Taxa Biotechnologies (genetic plant engineers)

Crowdfunding Platform: WeFunder

Amount Raised:  $111,860

3. MF Fire (an app-drive, low emissions wood stove)

Crowdfunding Platform: SeedInvest

Amount Raised: $40,900

4. Native Hostel Austin (Luxury hostel in Austin

Crowdfunding Platform: NextSeed

Amount Raised: $26,900

5. Bloomery SweetShine (distillery)

Crowdfunding Platform: StartEngine

Amount Raised: $35,700

 

6. GameTree (Social network for gamers)

Crowdfunding Platform: StartEngine

Amount Raised:  $90,360

7. Treasure State Internet (fiber optic installation)

Crowdfunding Platform: WeFunder

Amount Raised:  $8,800

8. StartMart Cleveland (Coworking space)

Crowdfunding Platform: SeedInvest

Amount Raised: $7,000

9. Gigmor (Connecting bands with venues and gigs)

Crowdfunding Platform: StartEngine

Amount Raised: $14,905

10. Urban Juncture (developing commercial real estate)

Platform: WeFunder

Amount Raised: $2,600

11. Graphic Armor (personalized condoms)

Crowdfunding Platform: StartEngine

Amount Raised: $1,636

12. NextRX Inc (Medical marijuana network pass)

Crowdfunding Platform: StartEngine

Amount Raised:  $0

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Top 100 Crowdfunding Sites in the United States, Europe, Asia, South America, Africa and other Global Markets in 2016

1 May

Seeking the Top 100 Crowdfunding Sites
in the United States or the Rest of the World? See Our Updated 2016 Rankings!

Crowdfunding PR’s 2016 Top 100 Global Crowdfunding Sites

Crowdfunding PR’s 2016 Top 100 Global Crowdfunding Sites

 By Robert Hoskins

[Click Here to Tweet this Top 100 List to Your Business Colleagues]

United States – We have updated our List of the Top 100 Global Crowdfunding Sites for 2016 in the United States, Europe, Asia, South America, Africa and other global markets.  

Clicking on the website traffic ranking links below will take readers to one of the most insightful resources of information that details each website’s traffic ranking; the number of unique visitors per month; the average time spent on each site per visit; and the number of pages viewed per each visit.

Of more interest to crowdfunding campaign managers will be the precise ratio of social media, content marketing, search engine marketing, email marketing and display advertising that is being utilized by each crowdfunding site’s marketing campaigns to drive readers and investors to their crowdfunding profiles.

GoFundMe vs Kickstarter SimilarWeb Stats

GoFundMe vs Kickstarter SimilarWeb Stats

Even though these numbers reflect the aggregation of all of a given portal’s crowdfunding campaigns marketing efforts, they offer direct evidence of what is working and what is not.  Note the difference on how much social media and display advertising is being used by the Top 10 Crowdfunding Sites compared the lower 90 crowdfunding sites. 

This information can be used by crowdfunding sites as well as their crowdfunders to get a thorough understanding on how to plan future marketing campaigns that will have a higher than average success rate.

Want to know how Kickstarter has just retaken GoFundMe as the world’s #1 crowdfunding platform? Click on the Global Rank number links below and then use the comparison tool to show side-by-side comparisons of SEO keywords, link referrals, and social media usage. See the bottom of the page for more crowdfunding marketing tips.

[Click Here to Tweet this Top 100 List of Crowdfunding Sites]

  2016 Rank © Front Page PR   Global Rank
#1 (2015: #2) www.kickstarter.com        692
#2 (2015: #1) www.gofundme.com      1,805
#3 (2015: #4) www.indiegogo.com      2,126
#4 (2015: #3) www.angel.co      4,550
#5 (2015: #5) www.lendingclub.com      9,781
#6 (2015: #6) www.justgiving.com    10,950
#7 (2015: #9) www.ulule.com     15,943
#8 (2015: #7) www.youcaring.com     22,315
#9 (2015: #8) www.kiva.org     24,366
#10 (2015: #12) www.crowdrise.com      24,617
#11 (2015: #10) www.donorschoose.org      33,737
#12 (2015: #16) www.fundingcircle.com      37,717
#13 (2015: #11) www.pledgemusic.com     42,380
#14 (2015: #13) www.tilt.com      51,509
#15 (2015: #50) www.seedandspark.com     64,606
#16 (2015: #22) www.circleup.com     68,095
#17 (2015: #24) www.kickante.com.br     69,483
#18 (2015: #15) www.crowdcube.com     73,968
#19 (2015: new) www.seedrs.com     90,162
#20 (2015: #28) www.gogetfunding.com     97,023
#21 (2015: #29) www.fundrise.com    117,386
#22 (2015: #20) www.firstgiving.com     117,598
#23 (2015: #17) www.razoo.com    126,920
#24 (2015: #14) www.giveforward.com     126,939
#25 (2015: #38) www.seedinvest.com     135,275
#26 (2015: #18) www.fundly.com    140,609
#27 (2015: #27) www.zeczec.com     151,454
#28 (2015: #25) www.crowdfunder.com    158,984
#29 (2015: #23) www.fundable.com    185,100
#30 (2015: #19) www.pozible.com    189,422
#31 (2015: new) www.companisto.com    201,708
#32 (2015: new) www.wiseed.com    211,628
#33 (2015: #21) www.fundrazr.com    214,382
#34 (2015: #31) www.experiment.com    217,304
#35 (2015: #53) www.peerform.com    222,324
#36 (2015: #53) www.startengine.com    227,165
#37 (2015: new) www.seedmatch.de    227,277
#38 (2015: #86) www.bnktothefuture.com    279,553
#39 (2015: new) www.fundersclub.com    284,743
#40 (2015: #45) www.ourcrowd.com   286,808
#41 (2015: #26) www.equitynet.com   293,867
#42 (2015: new) www.syndicateroom.com   293,940
#43 (2015: #32) www.realtymogul.com   332,585
#44 (2015: #42) www.pledgie.com   351,524
#45 (2015: #39) www.slated.com   354,964
#46 (2015: #44) www.fundanything.com   361,785
#47 (2015: #40) www.patchofland.com   364,803
#48 (2015: #33) www.geldvoorelkaar.nl   367,546
#48 (2015: new) www.anaxago.com   392,914
#49 (2015: #48) www.ppl.com.pt   407,009
#50 (2015: #30) www.fundedbyme.com   410,994
#51 (2015: #41) www.givezooks.com   443,766
#52 (2015: #76) www.joinmosaic.com   472,517
#53 (2015: #43) www.microventures.com  504,408
#54 (2015: #new) www.invesdor.com  520,978
#55 (2015: #37) www.offbeatr.com   526,705
#56 (2015: #36) www.wefunder.com   586,450
#57 (2015: #57) www.plumfund.com   603,093
#58 (2015: #65) www.crowdstreet.com   616,566
#59 (2015: #49) www.dragoninnovation.com   635,079
#60 (2015: #52) www.opportunity.org   669,915
#61 (2015: #61) www.flashfunders.com   693,854
#62 (2015: #58) www.fundraise.com   744,583
#63 (2015: #46) www.pave.com    748,172
#64 (2015: #64) www.symbid.com   884,303
#65 (2015: #68) pitchfunder.asufoundation.org 1,072,918
#66 (2015: #34) www.onevest.com 1,098,541
#67 (2015: #66) www.assetavenue.com 1,124,447
#68 (2015: #69) www.artistshare.com 1,135,924
#69 (2015: #70) www.nextseed.com 1,138,179
#70 (2015: #63) www.piggybackr.com 1,162,479
#71 (2015: #62) www.trucrowd.com 1,246,018
#72 (2015: #60) www.barnraiser.us 1,288,466
#73 (2015: #54) www.bolstr.com 1,477,216
#74 (2015: #59) www.earlyshares.com 1,585,544
#75 (2015: #80) www.pledgecents.com 1,597,425
#76 (2015: #82) www.crowd2fund.com 1,776,210
#77 (2015: #47) www.growvc.com 1,791,220
#78 (2015: #87) www.acquirerealestate.com 1,989,566
#79 (2015: #71) www.appsfunder.com 2,649,175
#80 (2015: #78) www.dreamfunded.com 2,760,699
#81 (2015: #72) www.assob.com.au 2,767,540
#82 (2015: #90) www.massivemov.com 3,234,838
#83 (2015: #55) www.investx.com 3,486,195
#84 (2015: #75) www.faithlauncher.com 3,605,295
#85 (2015: #75) www.crudefunders.com 3,792,211
#86 (2015: #84) www.texasenetworks.com 3,923,796
#87 (2015: #51) www.pubslush.com 4,078,981
#88 (2015: #73) www.foodstart.com 4,358,969
#89 (2015: #56) www.uinvest.com.ua 4,483,866
#90 (2015: #79) www.propellr.com 4,516,046
#91 (2015: #85) www.icrowd.com 4,629,191
#92 (2015: #67) www.microgiving.com 4,757,890
#93 (2015: #81) www.massventure.com 5,544,974
#94 (2015: New) www.offerboard.com 5,968,517
#95 (2015: #99) www.cMEcompete.com 6,363,051
#96 (2015: #83) www.ipledg.com 6,460,243
#97 (2015: #93) www.funderhut.com 6,764,561
#98 (2015: #97) www.crowdfundingbank.com 7,068,480
#99 (2015: #77) www.crowdfundingpays.com 7,667,040
#100 (2015: #88) www.sterlingfunder.com 7,951,827

Source: Feb 2016 SimilarWeb Website Statistics

Crowdfunding PR’s goal is simple. We want to make it possible for crowdfunders to shop for  crowdfunding platforms in a similar manner to the way media planners/buyers used to analyze ABC and BPA audit statements to buy advertisements in the business-to-business trade publication industry, where important media buying decisions were based on straight mathematics, not popularity or random guessing.

For example, would you rather run a crowdfunding campaign on a site where visitors are looking at 2-3 pages in around 3 minute’s time or a site where buyers are spending 6 to 11 minutes reviewing 6 to 10 pages?

This is the difference between shoppers who are visiting a site to see a particular crowdfunding campaign based on a marketing campaign versus people who are visiting a site to explore and actually shop around to find good deals to buy or invest their money.

This is why launching a campaign on Kickstarter or GoFundMe does not guarantee success. While Kickstarter, GoFundMe or Indiegogo may be the largest sites in the world, people are only spending enough time to shop through more than 2 to 3 crowdfunding profiles before they exit. While other sites like Razoo.com, DonorsChoose.org, and FundingCircle.com have visitors that stay more than 6 to 11 minutes and view 6 to 10 pages.

When researching, planning and executing successful marketing programs for both crowdfunding platforms as well as their individual crowdfunding customer profiles, it is extremely important to see what is driving the most traffic to any given crowdfunding site.  Success is usually determined not only by what site the crowdfunding campaign is being hosted on, but also the marketing programs being harnessed to drive potential donors/investors to a specific crowdfunding profile.

Clicking on each link above will allow media planners/buyers to understand what role direct traffic (content marketing), search engines (SEO, PPC Advertising), social media (Facebook, LinkedIn, Twitter, Reddit, Quora), email marketing and display advertising (Google Display, Outbrain, AppNexus) are having on the success of crowdfunding campaigns.

For example, when planning a social media strategy, one of the most popular questions we get asked is – what social media networks are driving the most visitor traffic? Facebook, LinkedIn, Twitter, Quora, Reddit, YouTube, Pinterest, Instagram? The links above will make this answer crystal clear.

Not satisfied with your position on the list? Front Page PR’s team of crowdfunding PR, social media and marketing experts can help crowdfunding sites and crowdfunding campaigns plan the perfect mix of integrated marketing programs to significantly improve the amount of website traffic being driven to any given fundraising campaign or crowdfunding platform.

Feel free to call (512) 627-6622 with questions or request help to improve your website statistics before June.

More Top 100 Crowdfunding Site Lists:

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If you’d like to add your site to the Top 100 list, please fill out the form below.

Top 10 Texas Equity Crowdfunding Sites (Portals)

22 Jul

Top 10 Equity Crowdfunding Sites for Accredited and Non-Accredited Investors in Texas

By Robert Hoskins

Austin, Texas – We set out to write a story on the Top 10 Equity Crowdfunding Sites in Texas, but according to Google there are only few rewards-based and equity-based crowdfunding sites (see lists below) that are planning to serve the Texas market place.

Suffice it to say that there is a huge opportunity for people with finance, legal and marketing experience to get into the Texas crowdfunding business.

Texas ranks #2 only to California by population with an estimated 26 million people, and approximately 20 million of those are 18+ years old.  When the Texas Intrastate Crowdfunding Exemption Rule goes into effect in November 2014, unaccredited investors will be able to invest up to $5,000 per year in start-ups and existing businesses, which represents a potential investment capital pool of $100 billion.

If you’d like to explore what it takes to setup a crowdfunding site in Texas, please give us a call at (512) 627-6622.

Top 10 Texas Sites – Unaccredited Investors:

Rank © Front Page PR   Global Rank
#1 www.texas.trucrowd.com     485,665
#2 www.nextseed.com     992,563
#3 www.massventure.com  1,388,521
#4 www.texascrowdfunding.com  3,315,899
#5 www.investpeer.com  5,659,309

Source: Feb 2015 SimilarWeb Website Statistics

Top 10 Texas Sites – Accredited Only Investors:

Rank © Front Page PR   Global Rank
#1 www.seedinvest.com    184,226
#2 www.microventures.com    241,967
#3 www.investx.com    403,141
#4 www.dreamfunded.com 1,267,585
#5 www.texasenetworks.com 1,721,280
#6 www.realtywealth.com 2,647,893

Contact us at 512-627-6622 if you would like to add your Texas crowdfunding portal to our list.

More Top 100 Crowdfunding Lists:

 

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