Healthcare & Pharma Fundraising on the Rise in RegCF Markets — But RegA+ Faces Headwinds
In recent years, Regulation Crowdfunding (RegCF) has emerged as a powerful capital-raising vehicle for healthcare and pharmaceutical startups—and 2024 was the strongest year yet. Since 2018, total funds raised through RegCF in this sector have grown from just $4 million to nearly $58 million in 2024. Following a pivotal SEC rule change in 2021 that raised the RegCF fundraising cap from $1.07 million to $5 million, the market saw a major inflection point. That year alone, the sector raised $29.5 million, nearly doubling the previous year’s total. Momentum continued through 2022 and 2023, with capital raised hitting $52.9 million and $56.3 million respectively. Notably, 2023 also saw a surge in deal activity, with 148 campaigns—more than double the prior year. In 2024, the sector outpaced the prior year’s total with $57.8 million raised from 127 deals, underscoring continued investor enthusiasm.
Several tailwinds are propelling this growth. The increased funding limits have made RegCF a far more viable path for capital-intensive healthcare startups. The legacy of the COVID-19 pandemic also amplified public and investor interest in healthcare innovation, from diagnostics to digital therapeutics. At the same time, platforms like StartEngine, Republic, and Wefunder have matured, offering greater visibility, deal flow, and infrastructure—making it easier than ever for retail investors to participate in early-stage healthtech and biotech opportunities.
Backing up this surge are standout deals that show just how far RegCF has come. In 2024, Simplify Genomics raised the full $5 million maximum under RegCF. The same cap was reached by Isosceles Pharmaceuticals in 2023 and Atom Limbs in 2022. Earlier notable raises include JOGO Health ($2.3M in 2021), Delee ($1.07M in 2020), Phoenix PharmaLabs ($1.1M in 2019), and Unlimited Tomorrow ($884K in 2018). These deals reflect both the growing sophistication of RegCF campaigns and investor willingness to fund breakthrough innovations in the space.
Meanwhile, the Regulation A+ (RegA+) market tells a different story. Once a promising avenue for larger raises, RegA+ has seen declining traction in the healthcare and pharma sector. In 2020 and 2021, the market was strong, with over $20 million and a record $43.2 million raised respectively, albeit across a handful of large campaigns. 2022 maintained momentum with $30 million, but funding fell to just $19.3 million in 2023, and to $6.2 million in 2024. These sharp swings are reflected in the leading RegA+ deals: NowRx dominated several years with $20M+ raises in both 2020 and 2022, and a staggering $43.2M in 2021. Other high-profile rounds include Emerald Health ($4.5M in 2021), Monogram Orthopaedics ($15.9M in 2023), and Autonomix Medical ($6.2M in 2024).
Unlike RegCF, RegA+ offerings require much stricter and expensive SEC qualifications and reporting, making them more burdensome and costly for issuers. In today’s tighter capital environment, many startups are shying away from such commitments. Retail investors have also become more cautious, particularly as public biotech and pharma stocks remain volatile and valuations have compressed.
As a result, we’re seeing a clear divergence: RegCF is gaining strength as a preferred retail fundraising channel in healthcare and pharma, while RegA+ struggles to maintain momentum. For investors, this signals where opportunity and innovation may be concentrated in the near term. With robust deal flow, regulatory tailwinds, and an increasingly engaged investor base, RegCF is poised to remain a cornerstone of early-stage health innovation funding through 2025 and beyond.
