Equity Crowdfunding 2018 Review

General StartEngine Index January 14, 2019

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Equity Crowdfunding 2018 Review

December 2018

The following data covers Regulation Crowdfunding raises between May 16, 2016, and December 31, 2018. Data is sourced from all publicly disclosed Form C filings with the SEC, as well as public websites.


Standard Analysis

Index: 1615

In the final month of 2018, companies raised over $5.1M, slightly less than November’s raise. To date, companies have raised over $161.5M via Regulation Crowdfunding, and the StartEngine Index grew 3.1%.

Over the course of 2018, companies raised $75.8M. An impressive number, but it’s worth noting that this number is relatively flat compared to 2017, a year in which companies raised just over $72M.

However, more entrepreneurs are launching campaigns. 732 companies launched Regulation Crowdfunding offerings in 2018, more than doubling the number of offerings to date. As of December 31, 2017, there had been 664 total offerings since inception.

Let’s take a closer look at what happened in 2018.

The Regulation Crowdfunding Platforms

Number of Offerings in 2018 by funding portal

Of the 732 offerings launched in 2018, StartEngine launched the most with 252 campaigns. Wefunder launched 158 offerings in 2018, and SeedInvest 65.

Industries That Raised Capital

Capital raised via Reg CF in 2018 by industry

Food & Beverage has been near the top all year, so it’s no surprise that the industry raised more than any other this year with $17.4M. Technology raised $8.1M, Media & Entertainment $5.4M, and Blockchain splashed into equity crowdfunding, raising $4.9M in its first big (regulatory) year.

States Using Regulation Crowdfunding

Regulation Crowdfunding capital raised in 2018 by state

California raised the lion’s share in 2018, raising $21.8M. Texas followed with $8.6M and New York with $8.2M.

The Counties Leveraging Equity Crowdfunding

Capital raised via Reg CF in 2018 by county

A large reason for California’s place as the largest state for equity crowdfunding lies with Los Angeles, San Francisco, and San Diego, who in 2018 raised $8.1M, $3.9M, and $3.2M. Houston and New York account for the rest of the top 5 metropolises, raising $4.2M and $3.4M.

December’s 10 Largest Raises

The largest Reg CF raises as of December 31, 2018

The top raises at the end of 2018 included Transatlantic Real Estate, a real estate company for the cannabis industry, and Legion M Entertainment, a fan-owned entertainment company. Both reached the maximum at the end of the year.

Three StartEngine companies were in the top 10 this month: ArtMap Inc., better known as the independent tech publication Hacker Noon, Mycroft AI, an open source voice assistant, and Atlis Motor Vehicles, an electronic truck company.

StartEngine In December

Capital raised on StartEngine Reg CF offerings in December

Companies raised $1.8M in December on StartEngine, led by ArtMap Inc (Hacker Noon), which raised $230K last month. Powell Development Group, creating a new condom design with Galactic Cap, raised $150K, and Mycroft AI raised $123K.

Did You Know?

19 companies raised the max $1.07M in 2018.

Raising in Los Angeles

24

campaigns in progress

7

new offerings filed with the SEC

~$1M

raised in December

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