It wasn’t quite the fireworks that some had hoped for, but Regulation Crowdfunding closed the year with a respectable showing. In 2016, 186 companies launched Reg CF campaigns, attracting $19 million in capital commitments, according to year-end data compiled by Crowdfund Capital Advisors (CCA). Investor interest and investment have increased steadily since the law went into effect last May, but the number of new deals has stalled out at around 22 new campaigns a month.
“Awareness continues to be the biggest challenge in the online finance space,” said Jason Best, a principal at CCA, in explaining the results. “If you walked down the street in most American cities and asked what equity crowdfunding was, or what the JOBS Act was, 9.5 out of ten people would not know what that is.”
“You’ve got a situation here you’ve got a new asset class, new investors, a new investment channel, new regulation and new issuers, which means we’re looking at early adopters in this space,” added Best. […]
The full and original article can be viewed on Locavesting.com
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