Regulation Crowdfunding (Reg CF) is a securities exemption that allows issuers to raise up to $5 million in an online offering. The goal of the policymakers who crafted the law was to enable smaller firms to access capital while allowing all investors to participate in these private offerings.
Crowdfund Capital Advisors (CCA) has been tracking the market for years. While the ecosystem has evolved and aspects of the rules have changed, CCA has always been on hand to share data points for industry insiders and policymakers.
In 2025, CCA reports that almost $500 million was raised using the Reg CF securities exemption. This represents three years of decline with 28% fewer offerings.
Only eight states saw deal flow growth while the rest declined.
While the Reg CF market slowed, the broader venture market also declined. But CCA adds that the headline does not reflect everyone you should know.
According to CCA’s website, of the 4,358 companies that completed Reg CF offerings, 3,708—or 85.1%—are still operating today. Only 649 (14.9%) have shut down. [uncertain time frame]
Additionally, CCA states that an emerging theme is a “graduation” pattern in which funded firms go on to raise institutional funding.
Yes, investing in early-stage firms is very risky and not for the impatient. Yet, according to CCA, the market continues to develop.
What may help are changes like a higher funding cap, perhaps to $20 million, and more incentives for institutional money to participate alongside smaller investors.
For the ecosystem to grow and thrive, CI has long stated that each constituent participant in the equation must succeed. Issuers must be able to access the capital they need to execute their mission, investors must see a solid return on their investment, and platforms must be sustainable, i.e., profitable.
