Q1 US investment crowdfunding trends in two charts

The first quarter of 2022 showed a slowdown for US investment crowdfunding issuers but not investors compared to Q4 2021. In addition, the distribution of investor capital across the United States is meeting the demand by issuers.

While the public market volatility of the past few months is expected to have a trickle-down effect on investment crowdfunding metrics in the coming quarters, the start of 2022 suggests the onset of a recalibration period for both startups and crowdfunding investors.

Here's a closer look at some trends from our 2021 Annual Investment Crowdfunding Report that depict the state of the investment crowdfunding market after the record year of 2021.

Source: Crowdfund Capital Advisors as of March 31, 2022

US investment crowdfunding-backed companies raised $133 million across an estimated 1,038 active deals in Q1. Two hundred twenty-six issuers successfully closed transactions in the quarter, down from 239 in the prior quarter and lower than the highest (290) in Q2 2021.

Even though the Q1 deal value was lower than the first three quarters in 2021, the number was still greater than Q4 and exceeded pre-2021 quarterly totals dating back to 2016. CCA analysts say that investment crowdfunding deal activity will likely see a delayed reaction to the public market slowdown but will remain strong given the need for capital across the USA —a trend to watch closely in the next quarter.

Source: Crowdfund Capital Advisors as of March 31, 2022

The San Francisco Bay Area and New York maintained their perennial status as the most active regions, representing 46% of capital committed in the first three months of 2022. However, as one can tell, the size and distribution of the bands tend to be increasing, showing that the democratization of capital across the United States is working.

For more investment crowdfunding data and analysis email: data@theccagroup.com