A flat year for crowdfunding isn’t a bad sign at all for budding startups
The equity of 2022 crowdfunding market could not surpass the record year 2021. But despite a lower investment volume, it outperformed venture capital over the same period. Founders looking to raise expansion or bridge financing should take note.
In July, it resembled equity crowdfunding — a funding route that allows startups to raise money from unaccredited investors through Reg CF and Reg A filings, among other things — was on track for its best year yet. According to the Arora project, more than $215 million was raised in the first half of 2022, surpassing the $200 million total in H1 of 2021.
At the time, Krishan Arora, the CEO and founder of the Arora Project, which manages and tracks these deals, and Nick Tommarello, the founder of crowdfunding site WeFunder, both said they saw growing momentum for the strategy in 2022.
