Reg CF 2024 in review

Reg CF 2024 in review

Reg CF held steady in 2024 amid economic uncertainty, venture capital pullback, and political turmoil. The federal exemption, which debuted in 2016 and allows retail investors to meaningfully participate in the private capital markets, is slowly emerging as a capital-raising force.

The indispensable Crowdfund Capital Advisors (CCA), the preeminent Reg CF data curator, recently reviewed Reg CF 2024 progress and the numbers range from steady to exciting. For starters Reg CF issuers raised $574 million in the past year. And a larger percentage of that capital now goes to post-revenue companies than ever before. This signals a maturing Reg CF market. Moreover, venture capitalists continue to warm to the exemption. Parallel offerings where Reg CF offerings take place besides Reg D 506(c)—an accredited-investor only offering—also rose significantly in 2024.

Reg CF 2024 – Slow and Steady

By other metrics Reg CF is either holding steady or down from its 2021 COVID highs. Job creation and economic multiplying effect are two reasons Congress passed the JOBS Act of 2012 which created Reg CF. These issuers are now on average supporting 10 jobs for a total of just 112,000. Further, CCA estimates Reg CF issuers have pumped over $26 billion into the US economy.

***Source: Crowdfund Capital Advisors***

Reg CF 2024 was a steady if not spectacular year, Economic headwinds and the presidential election likely contributed to uncertainty that tainted all capital raising last year. But the future still looks bright. The 2025 outlook is bright as COVID fades and a semblance of general stability sets in.

Reg CF Advantages

Companies that raise with Reg CF in 2025 can expect the following advantages.

Broaden your investor base: Unlike other funding models, Reg CF can diversify your investor base from both a financial and geographical standpoint. Reg CF portals can accept investors from anywhere in the US, giving your business a potential foothold in all 50 states.
Turn your customers into marketers: Reg CF allows your customers to become financially invested in your business and see their investment grow as your business grows. This provides a free marketing campaign for your business with every new investor.
Incentivize your investors: Reg CF allows you to provide perks as part of the investment. Depending on the product this could include the product itself, ‘founder’ status on your website, access to events, or anything else that may induce an investment.
Prove value to institutional investors: A successful Reg CF raise can show larger, institutional investors your business is ready for the big money. Many larger investors are now requiring “social proof” of a company’s business model. Your business can show larger investors value and momentum and provide your business “bridge money” while larger investors evaluate your model.

By Jossey PLLC