Industry Analysis - April 7, 2021

Where to Find Regulation A+ Raises – Chart of the Week

With the massive growth Regulation Crowdfunding (Reg CF) has seen over the past few years, it can be easy to forget that other regulation types exist within the online private markets. So let’s change that by looking at Regulation A+ raises this week. As a reminder, Regulation A+ is an offering type that allows private companies to raise up to $20 million in a Tier 1 offering, or $75 million in a Tier 2 offering over the course of a year from both non-accredited and accredited investors. 

Companies that are more established — in their operations and product/service offerings — tend to pursue Regulation A+ raises. As a result, there are far fewer Regulation A+ raises than Reg CF campaigns at any given time in the market. KingsCrowd is currently tracking 30 Regulation A+ raises — as opposed to more than 500 Reg CF campaigns!

Percentage of Active Reg A+ Raises by Platform

For today’s chart, we examined where the current Regulation A+ raises can be found. Of the active companies, over half are listed on StartEngine. Republic comes in next with 20%, and just over 13% are on SeedInvest. We have found that Regulation A+ raises tend to be concentrated on these three platforms, though this data only takes into account live campaigns. 

One additional category, new to KingCrowd’s coverage, is the independent raise. At this stage some startups choose to raise rounds of financing independent of a platform. Independent raises make up 10% of current Regulation A+ raises. One active example of an independent raise is Cloudastructure. Prior to raising a round independently, Cloudastructure raised seed money on both Republic and Wefunder.

About: Olivia Strobl

Olivia comes to KingsCrowd with a background in venture capital and technology. She spent time at Glasswing Ventures, an AI-focused venture fund in Boston, before joining the KingsCrowd team. There she helped develop machine learning algorithms for the opportunity qualification of preseed and seed-stage startup companies. Prior to her time at Glasswing, Olivia worked in a lab studying the neural correlates of attention. She holds a degree in Neuroscience from Wellesley College.

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