"The industry's Gold Standard"

The 2023 Investment Crowdfunding Annual Report


From the team that created the legal framework that led to the industry's birth in 2012, and wrote The Book, now comes the ultimate update and a must have for every investor and issuer!

Table of Content:

Executive Summary

Deal Activity

Issuers

Investments

Valuations

Economic Stimulus

Sector Analysis

Platform Performance

Investment Crowdfunding as a jobs engine

Areas for Improvement

2024 Investment Crowdfunding Outlook

Conclusion

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WHY I WROTE THIS REPORT

It's the ONLY report with the depth and breadth covering the entire investment crowdfunding industry. Leading financial service firms rely on our report to understand the scaling dynamics of the industry. Grasp the pulse of deal activities and valuation trends across the market. A vital tool for understanding how crowdfunding creates jobs and injects billions into local economies. Compiled by the team that not only wrote the framework for the law but also lobbied for its passage and attended the bill-signing ceremony at the White House.


For start-ups and small businesses, this bill is a potential game changer. Right now, you can only turn to a limited group of investors - including banks and wealthy individuals - to get funding. For the first time, ordinary Americans will be able to go online and invest in entrepreneurs that they believe in.

President Obama, Jobs Act Bill Signing Ceremony

The future of Investment Crowdfunding is not just about raising capital; it's about creating an ecosystem where data, liquidity and venture capital coalesce to offer unparalleled opportunities for both investors and startups.

Sherwood "Woodie" Neiss, Co-Founder Crowdfund Capital Advisors

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As industry pioneers and trusted experts, we're here to support the growth of crowdfunding and empower stakeholders with tools and knowledge they need to succeed. Recognized for our expertise, CCA’s founders have been ranked among the ten most influential people in crowdfunding by Forbes.com.

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Beyond the United States, our impact extends globally. We have worked in over 45 countries, engaging with investors, entrepreneurs, governments, and multilateral organizations. Through infrastructure development, regulatory initiatives, and capacity-building projects, we have tackled early-stage finance challenges and harnessed the power of crowdfunding to foster successful ventures, innovation, and job creation.

With Crowdfund Capital Advisors (CCA), we are

at the intersection of 3 transformative themes :


Investment crowdfunding has brought about a revolution in how startups and businesses accumulate capital. CClear™️ is a platform that harnesses the power of all the Regulation Crowdfunding data to provide insights, analytics, and transparency into the crowdfunding ecosystem.


Venture Capital has been a crucial source of funding for startups for a long time. However, Venture Capital is currently moving upstream and pulling back from early-stage investments. D3VC is our solution to create a more inclusive and diversified VC landscape. By combining AI with traditional VC methods, D3VC offers a hybrid approach that provides the best of both worlds. It involves using machine learning while still maintaining the rigor and strategic oversight of traditional venture capital.


Liquidity is crucial for any investment ecosystem to thrive. However, when it comes to trading private company securities, there are a variety of State securities laws that need to be navigated. GUARDD aims to simplify the process of transferring securities, allowing investors to access up-to-date company and financial information and easily sell their holdings when necessary.


Just Stop for a Second and Ask Yourself:


Small business creation and startup formation drives economic growth. CClear™ aims to democratize and open the marketplace in venture capital that is absolutely critical to supporting that growth.

With banks and classic VC’s increasingly cautious, we give participants the tools to capitalize on this rapidly growing opportunity, providing them with exclusive quantitative and qualitative information needed to make the right decisions.

CClear™ connects issuers, investors, platforms, and regulators seamlessly to provide transparency and real-time insights, to the benefit of the industry at large.

IN THIS REPORT, YOU WILL LEARN:

Quick insights, details about accelerated growth in Regulation Crowdfunding (Reg CF), SEC modifications and the CClear Crowdfinance 50 Index.


Valuations, unrealized ROI, case studies, 2023 exits and follow-on rounds by issuers.

Deal activity by issuers and investors, detailed distribution of offerings across the US by region, state and timeframe with forecast.


Economic stimulus, sector analysis, platform performance, investment crowdfunding as a jobs engine, areas for improvement, and 2024 investment crowdfunding outlook.



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IT’S TIME TO ACT NOW!

The 2023 report marked a significant shift in our

methodology, as it comprehensively assessed

startup ecosystems, recognizing that their

combined strengths transcend those of individual

cities. This change resulted in notable shifts from

last year's city-centric rankings, underscoring the

unique synergies and potential of these dynamic

ecosystems.

Phoenix-Scottsdale emerged as a leader with the

highest overall score, showcasing significant

market reach and robust investor engagement.

Silicon Valley demonstrated its enduring appeal

with ongoing funding support and a global hub for

technology and innovation. Las Vegas proved

unique, effectively utilizing funding opportunities

despite having fewer offerings.


ABOUT THE AUTHOR

Mr. Sherwood Neiss co-authored the "Crowdfunding Exemption Framework," which became the basis of Title III of the U.S. JOBS Act to legalize equity and lending-based crowdfunding. He is at the forefront of the crowdfunding industry, from issuance to data analysis, to secondary trading and liquidity. He co-founded Crowdfund Capital Advisors ("CCA"), a consulting firm serving certain governments and multi-lateral organizations, including the Inter-American Development Bank, the World Bank, governments of Chile, Malaysia, Israel, and the UAE, professional investors, crowdfunding professionals, and the entrepreneurial community.

He is also a co-founder of GUARDD, the EDGAR of financial disclosures for private companies, and is a General Partner of D3VC; a Venture firm focused on diversified investing among investment crowdfunding issuers. Mr. Neiss co-authored the World Bank's research report "Crowdfunding's Potential for the Developing World," the MIF report "Creating a Crowdfunding Ecosystem in Chile," and "Crowdfund Investing for Dummies." He is the chief architect of the CCLEAR Regulation Crowdfunding Database, which tracks and monitors online security transactions for investors, regulators, platforms, and the media. He is a co-founder and former board member of the Crowdfunding Professional Association and the Crowdfunding Intermediary Regulatory Advocates. Mr. Neiss was selected as a recipient of the Crowdfunding Visionary Award and Crowdfund Beat's Person of the Year. VentureBeat listed Mr. Neiss as one of the most influential thought leaders in crowdfunding. Before crowdfunding, Mr. Neiss co-founded FLAVORx, Inc., acted as its chief financial officer, and won Ernst & Young's Entrepreneur of the Year award, as well as the Inc. 500 award three years in a row.

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