$5 Million Raised Since Change in Equity Crowdfunding Rules
In just under three months, investors have raised more than $5 million for businesses through equity crowdfunding, according to a group that tracks the funding method.
On May 16, the rules for equity crowdfunding expanded, opening up the method to anyone. Previously, only accredited investors who met certain financial requirements were eligible to back businesses in this manner.
Now, even first-timers can “fund startups online with as little as a few hundred dollars of investments,” according to a press release from NextGen Crowdfunding.
Related: Starting May 16, Entrepreneurs Can Raise Money in a Whole New Way. Here's What You Need to Know.
In its $5 million benchmark, the group highlighted equity crowdfunding campaigns that have met their minimum goals.
“It’s encouraging to see how both entrepreneurs and investors are embracing equity crowdfunding,” says Aubrey Chernick, founder of NextGen Crowdfunding, in the release. “This new era of crowdfunding is creating powerful opportunities for both investors and startups.”
Related: Equity Crowdfunding Takes Off: What Your Business Should Know
According to NextGen, here are the companies “that have passed their minimum goals as of the time of this announcement”:
Beerfit: Endurance event production company featuring America's Beer Run -- $27,912
Beta Bionics, Inc.: “Bionic pancreas” to manage blood sugar levels -- $1,000,000
Cleveland Whiskey LLC: Distillery that creates speed-aged spirits in 24 hours -- $299,507
Everipedia, Inc: A free, easy to use wiki and commenting platform -- $68,136
Hawaiian Ola Brewing Corporation: A drink company that utilizes farmers who produce sustainable crops -- $100,000
Hops and Grain Production, LLC: Sustainable craft brewery and taproom -- $828,578
Legion M Entertainment, Inc.: Fan-owned entertainment company -- $1,000,000
MF Fire: A fire technology company leveraging advanced combustion science to engineer fire products -- $108,300
MobileSpike, Inc: Allows law enforcement officers to stop pursuits from the safety of their vehicle -- $112,036
My Trail Company, PBC: Outdoor apparel and equipment company -- $158,176
N1CE: Packaged frozen cocktails -- $112,441
Native Hostel Austin LLC: Upscale youth hostel -- $396,500
Red Bay Coffee Company: Wholesale specialty coffee, hand-roasted in Oakland, Calif.
Shape Scale, Inc: A scale that scans your body in 3-D to show changes in your body and appearance -- $96,536
Slingfin, Inc: An outdoor equipment brand -- $67,179
Snapwire: Connects mobile photographers with businesses and brands that need creative imagery -- $92,740
Speakeasy: Nightclub, bar, cabaret and casino in San Francisco -- $357,451