The StartEngine Index, May 2017

General StartEngine Index June 6, 2017

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The StartEngine Index, May 2017

 

May 2017

Your monthly look at Regulation Crowdfunding.

*Revised 6/9/2017 at 12:22PM

Background

Upon the one-year anniversary of the adoption of Regulation Crowdfunding in the U.S., StartEngine developed an index to track the progress of the entire industry. We will report on trends monthly, and will add information across equity crowdfunding regulations as it becomes available. Stay tuned!


June 2017

The following data covers Regulation Crowdfunding raises (only) between May 16, 2016, and May 31, 2017. Some data deals directly with the first six months of 2017. Data is sourced from all publicly disclosed Form C filings on the following portals.

Index: 387

At the end of May 2017, companies had raised over $38M in funding through Regulation Crowdfunding. Since July 2016 (when the first campaigns began closing on their funding rounds) the index has had a compound monthly growth rate of 16%.

Total Capital Raised in Regulation Crowdfunding

There are many different funding platforms that have contributed to the $38M. For all data that follows, we focused on six platforms: StartEngine, Wefunder, Republic, Ingiegogo, NextSeed, and SeedInvest.

Common shares represent 27.9% of the securities sold followed by SAFE with 21.8% and debt offerings representing 21%.

Types of Securities Offered

At the close of 2016, the average company had 7 employees, was 6 months old, had close to $500K in assets, $130K in cash, a little over $500K in revenue and was not profitable at the time.

The most companies were headquartered in California at 44.3%, followed by Texas at 16.5%.

Company’s Home State of Operation from May 2016 to May 2017

The funding portal supporting the most money raised in Regulation Crowdfunding in the first six months was Wefunder, whose companies raised $6.3M. StartEngine was second in Regulation Crowdfunding with $4.8M. These figures do not include capital raised through Regulation A+, in which StartEngine leads the industry.

Capital Raised per Funding Portal in the First 6 Months of 2017

Total Raises Across Funding Portals in the First 6 Months of 2017 (Reg CF)

Top 10 Company Raises (Reg CF only Raises)

*Information on this page was updated on 6/9/2017. Notably, sections regarding the first six months of 2017 were revised, and Legion M’s raise on Wefunder was added.

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