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Equity crowdfunding appears immune to market volatility, on track for its best year yet

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Equity crowdfunding — or community raises, as the fundraising platforms involved prefer to call it — has grown steadily over the last few years. Regulations governing the process continue to evolve in the market’s favor, and 2022’s venture funding pullback may be the final piece needed to quiet the fundraising strategy’s naysayers for good.
This year looks poised to be monumental for equity crowdfunding, which entails raising capital through specific filings with the U.S. Securities and Exchange Commission, including Reg CF and Reg A, from a mix of investors that don’t have to be accredited.
Over the past few years, equity crowdfunding has shed much of the stigma that used to imply that only companies that weren’t good enough for VC raised this way. Some traditional VCs have even scouted on the platforms or encouraged their portfolio companies to pursue the process. But with the fundraising climate now showing cloudy skies, equity crowdfunding is getting ready for a field day.

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