#Crowdfunding #AltFi / The Number of FINRA Regulated Funding Portals Increases as Investment Crowdfunding Grows

While Reg CF became actionable in May of 2016… the number of funding portals started with just a handful but has since blossomed into dozens of platforms. In fact, as of today, FINRA indicates there are 57 approved funding portals.

Crowdfund Capital Advisors (CCA) reported that July was the highest month of investor commitments ever at $23.2 million… CCA shared that July is typically the second slowest month for new offerings but this July had the highest month of new offerings…

While the number of FINRA regulated funding portals and issuers raising capital online continues to grow, this sector of Fintech remains dominated by several platforms. Recently, StartEngine announced having topped $200 million in money raised. SeedInvest has surpassed $200 million as well according to a recent article. Most platforms list securities under several exemptions and not just Reg CF which has been hamstrung a bit by an arbitrary funding cap ($1.07 million) that does not align with the realities of seed funding today. It is common for an issuer to list a side-by-side Reg CF/Reg D offering to circumvent the funding cap. Under Reg D, only accredited investors may participate…

Currently, the Securities and Exchange Commission (SEC) is considering raising the funding limit for Reg CF to $5 million… An increase in the funding cap may also help funding portals achieve sustainability (profitability) too – vital to the success of this sector of online capital formation.

For the Reg CF ecosystem to thrive and survive, it must work for each of the three constituent parties: Issuers must be able to raise the capital they need, investors must have access to quality investments that may provide investment returns, and platforms must be able to generate enough revenue to become profitable. It’s as simple as that.