Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
CCA Report: State of Investment Crowdfunding 2025
Report | Feb 20, 2025
Investment Crowdfunding in 2025 - Trends, Insights, and Market Analysis
Every year, Crowdfund Capital Advisors led by Sherwood Neiss, publish their annual report based on investment crowdfunding data captured and analyzed. Their report represents one of the most comprehensive views of crowdfunding markets in the U.S. and includes deal activity, trends, insights and analysis. This article shares a few highlights. Download the free 209 page PDF report for a full review of the 2025 State of Investment Crowdfunding.
See: State of UK Equity Crowdfunding Entering 2025
Investment or Equity crowdfunding continues to demonstrate that it's a powerful capital raising tool for startups and scale-ups, helping businesses access capital and driving innovation across the country. Over the past decade, it has enabled thousands of companies to raise capital outside traditional financing channels, offering companies choice.
Investment Crowdfunding's Impact Since 2016
As of the end of 2024, investment crowdfunding platforms collectively raised over $2.8 billion since inception, funding 7,894 issuers across 2,234 cities. This movement is not just about raising capital—it has created 437,000+ jobs and injected $9.5 billion annually into local economies. Since the launch of equity crowdfunding in 2016, the numbers clearly demonstrate impact and growth, with more upside to come:
- Issuers: 7,894
- Offerings: 9,376
- Cities across the United States: 2,234
- Funded capital: $2.8 billion+
- Investors: 2.1 million+
- Jobs supported: 437,000+
- Economic Stimulus: $27.1 billion injected into the economy
- Enterprise value: just under $100 billion of potential liquidity.
2024 Changing Investment Landscape
The industry has seen rapid growth, maintaining a compounded annual growth rate (CAGR) of 32.5%. It took five years to reach the first billion dollars in investments but the second billion was raised in just 23 months.
See: Public Market Challenges and Equity Crowdfunding Capital
- Total investment raised was $545.6 million, setting a new record (surpassing the previous high in 2021)
- Average amount raised per campaign was $616,000. A 29.4% increase from 2023, showing that companies are securing more funding per round
- Campaign success rates have declined from 72.7% in 2023 to 63.7% in 2024. This signals increased investor scrutiny, with funding shifting toward companies that demonstrate strong revenue potential.
- More investors are writing bigger checks with average check sizes increasing in 2024, showing a stronger interest in post-revenue businesses that have a proven track record.
- Preference for revenue-generating businesses was 64% of successful campaigns in 2024 were for companies that already had revenue, demonstrating that investors favour more established businesses over early-stage startups
Top Platforms in 2024. Who’s Leading the Market?
Investment crowdfunding markets are still competitive but a few platforms continue to lead in total capital raised (see ranking in table below)
| Rank | Platform | Offerings | Capital Raised | Investors |
|---|---|---|---|---|
| 1 | Wefunder | 276 | $268.5M | 106.4K |
| 2 | StartEngine | 169 | $83.8M | 50.8K |
| 3 | Dealmaker | 56 | $43.2M | 30.2K |
| 4 | Republic | 50 | $25.0M | 21.0K |
| 5 | Honeycomb | 138 | $9.5M | 8.6K |
Three Key Trends
1. Investor Behaviour and Market Shifts
Recently, more capital is flowing into companies with proven revenue models. In 2024, 63% of successfully funded companies were post-revenue. This is a departure from the earlier years when riskier, pre-revenue startups dominated investment crowdfunding markets.
See: How Fintechs Are Unlocking Value in Private Markets 2024
Investors are becoming more selective, resulting in larger check sizes but fewer deals being funded. This trend reflects a maturing market where investor confidence hinges on financial performance and strategic growth opportunities.
2. The Rise of AI and Fintech in Crowdfunding
Technology startups in artificial intelligence, machine learning, and fintech are attracting the highest levels of investor interest. AI firms raised $312 million in 2024 alone with fintech companies following closely behind. This aligns with broader market trends where digital transformation and automation are leading investor priorities. Also, crowdfunding platforms themselves are integrating AI tools to improve decision-making and potentially increase transparency while reducing risk.
3. Policy and Regulatory Changes
Regulation remains a hot topic as policymakers consider raising the Regulation Crowdfunding (RegCF) cap from $5M to $20M. This change could unlock larger capital raises, making equity crowdfunding a more viable option for high-growth companies. Further, discussions around tokenized securities and blockchain integration could introduce new levels of liquidity and investor participation which would further bridge the gap between private and public markets.
Key Takeaways
- Investment crowdfunding is growing fast with more than $2.8 billion raised and 7,894 issuers funded, making it a major force in startup financing.
- Investors are contributing larger amounts but being more selective, focusing on businesses that already generate revenue.
- AI and fintech startups attracted the most funding, with AI companies raising $312 million in 2024.
- Regulatory changes could expand the market, such as increasing the RegCF cap from $5M to $20M and expanding the use of tokenized securities.
- Leading platforms continue to dominate, with Wefunder, StartEngine, and Republic holding strong positions, while Dealmaker is growing in specialized markets.
The Road Ahead
Investment crowdfunding has proven its ability to democratize access to capital, stimulate job creation, and fuel economic growth. With institutional investors showing increased interest and platforms refining their strategies, the next decade will likely see even greater adoption and innovation in the space.
See: Revolut’s Crowdfunding Success from Start-up to $45 Billion
2025 is expected to bring further growth, with the number of deals projected to rise to 1,600-1,700 offerings. Artificial intelligence investment tools and tokenized securities could provide more liquidity for investors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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