What 2022 Has in Store for Equity Crowdfunding
We had an incredible time giving an overview of what 2022 has in store for Equity Crowdfunding for you well-rounded professionals! For those who missed it, we’ve provided a webinar recording for you to watch at your earliest convenience.
In today’s blog, we’re going to provide a sneak peek of some of the topics we discussed during this webinar.
2021 Was a Huge Year For Equity Crowdfunding.
Tim: "Coming out of the pandemic year, it was interesting to see the entire ecosystem of Equity Crowdfunding grow."
In the wake of the pandemic, no one really knew what was going to happen or what direction we were headed towards.
To our surprise, events still managed to flourish with a major comeback. Both online and physical events kept their momentum going, we even witnessed service providers gaining more press/media attention.
We started catching the attention of management consulting firms, attorneys, investment banks, etc.
People began to ask about Equity Crowdfunding out of genuine interest- not by influence.
We were pleasantly surprised to see the traction that the industry was getting.
"Hey, I know you've been talking about Equity Crowdfunding for a while, but I think it's time that I learn more."
In March 2021 there was a major spike: Reg CF jumped from 1.07 to 5 million and Reg A+ jumped from 50 to 75 million.
This opened up new markets for issuers to come and participate! It has been a month over month growth with more investors/issuers ever since.
Issuers Experienced Success, But What About The Investors?
Jason: “So you're an investor retailer credited and you go onto a campaign on start engine. Wefunder, Republic, Fundify, Net Capital.. you name it. Then you start to ask yourself, what is my strategy here? “
“What am I gonna get out of this investment? I like the idea of being involved. The experience sounds great, but where is the liquidity? Is there gonna be an X in event what's gonna happen?”
It's important to note that Equity Crowdfund marketing is not similar to day trading.
These are investments that should be taken with precautions. At the end of the day these investments typically with any startup, you're looking for some kind of liquidity event that may not occur until five to seven plus years.
The Purpose of Secondary Markets?
Now to answer the question for those that are looking for instant liquidity, in the wake of the secondary markets in 2022, that option will be available.
We've heard of groups that are doing multiple rounds and how this will benefit investors who came on at different price points. This is the next step of the crowdfunding industry.
Secondary markets enable investors to continue to support issuing companies by giving them opportunities for liquidity.
Jason: “Imagine secondary trading platforms for just entertainment, for just fashion for just real estate.”
Different niches become eager to participate in crowdfunding around that success to diversify their funding options. And a new wave of investors will enter the Equity Crowdfunding space.
Thank-You For Your Time!
We hope this caught your attention. If you would like to hear more of what we had to say, you can watch our webinar recap here.
We’re looking forward to what we can achieve during the new year, and keeping you updated on what the future holds for the Equity Crowdfunding industry!
Thank you for your support!