Crowdfunding is energizing new companies – and those looking to raise between $5 million and $25 million have a 90% success rate, according to Rialto Markets research
US Regulation CF investment smashed all records in 2020
Regulatory oversight has come to the sector via the type of fully regulated Alternative Trading Systems (ATS) being pioneered by Rialto Markets
Experienced broker dealer and pioneering secondary market ATS operator Rialto Markets says technology and regulation will enhance crowdfunding, transforming everyone’s access to financial markets.
“It’s a new frontier rapidly being explored by a growing army of retail investors – the men and women in the street – democratizing the investment world,” said Rialto Markets CEO Shari Noonan.
“It is also enabling private company issuers the chance to offer a highly regulated vehicle to realize early value for their shareholders, without the need for listing on a platform such as the New York Stock Exchange or Nasdaq or company sale.”
“We are launching the Rialto Markets Alternative Trading System (ATS) secondary market platform and note that even Nasdaq and Goldman Sachs have plans to follow our lead, testament to our vision and recognition that the revolution won’t be stopped.”
Crowdfunding was enabled in the US by the JOBS Act 2012, taking off since 2016 through growing appreciation of investment flexibility with the new Regulation A+ and Regulation CF securities status, allowing private companies to raise up to $75m or up to $5m respectively from anyone – everyday citizens, through high net worth accredited investors, and right up to large financial institutions.
The global crowdfunding market is expected to grow by $196.36 billion during 2021-2025, at a Compound Annual Growth Rate (CAGR) of over 15% (source: Technavio).
Regulation CF investment in the US for 2020 smashed all records – monthly, quarterly, and annually – and was up 105% against 2019, with over 358,000 Regulation CF retail investors during 2020 alone (source: Crowdwise).