StartEngine, a full-stack securities crowdfunding platform, has circulated an email reporting that it has raised more than any other platform under Reg CF and Reg A+ during the third quarter of 2022.
Reg CF (Regulation Crowdfunding) is a securities exemption that allows companies to raise up to $5 million online from non-accredited and accredited investors. Reg A+, a different securities exemption that requires an SEC-qualified offering document but allows firms to raise up to $75 million – also can cater to retail investors. StartEngine states that during Q3, it helped firms raise $30.7 million in Reg CF funding and $17.1 million in Reg A+ securities offerings or $41.8 million in total – thus topping its nearest competitors, Wefunder and Republic.
Wefunder generated a total of $32.7 million and Republic booked $17.4 million.
Now total volume raised is just one metric of platform success and StartEngine does not include Reg D offerings, only available for accredited investors, which could skew things a bit.
StartEngine also shared that Food & Beverage was the top sector on its platform, followed by Real Estate and SaaS.
It was previously reported that StartEngine had raised $10.6 million in a single week – the most ever for the marketplace, a milestone that took place during a challenging economy.
While the securities crowdfunding sector appears to be holding up fairly well, with interest rates on the rise and predictions of a hard landing – things could change dramatically in the coming months. Meanwhile, pending legislation – the JOBS Act 4.0 – may help online capital formation and small businesses in general – if Congress approves the bill.