Crowdfund Capital Advisors (CCA), a data service provider for the securities crowdfunding sector, says the Securities and Exchange Commission missed the mark in its recent report on Reg CF (Regulation Crowdfunding).
CCA states that while the SEC relies on Form C-U, these filings have historically had a low participation rate, despite being required under the exemption. Thus, the SEC’s data is inaccurate, and CCA’s is more accurate.
CCA states that its information, gathered from issuers and their offerings on various online capital formation platforms, is more precise and therefore a better indicator of Reg CF activity.
“Unlike the SEC, which relies on delayed and incomplete Form C-U filings, our data is live. We track investment activity daily, across every open campaign, platform, and security type — with no need to wait months for quarterly updates or year-late federal reporting.”
CCA reports that Healthcare, Energy, and Industrial & Manufacturing sectors saw significant growth in 2025. At the same time, Technology, Financial Services, and Real Estate experienced notable declines.
These declines are attributed to valuation resets and macroeconomic trends. Meanwhile, growing sectors suggest a shift to “real-world solutions” and “harder tech.”
At the same time, the number of investors has dropped dramatically. Investors peaked in 2021 at 515,000 and are now less than half that amount at 233,000.
While the number of investors has declined, the average check size has more than doubled from $689 in 2020 to around $1700 in 2024 (which is apparently continuing in 2025).
Perhaps platforms are becoming more selective in the issuers raising money on their platform? Hence, fewer, better offerings for investors? Anyway, venture markets in general have been relatively moribund.
CCA founder Sherwood Neiss recently posted that new offerings listed under Reg CF may foreshadow a return to a more robust offering environment.
Neiss stated:
“Last week’s numbers tell a compelling story: New Reg CF deals jumped 50% from the week prior, and the success rate for closings climbed 50% too. And it wasn’t just one platform—momentum showed up across the board. Honeycomb led in new filings, with Wefunder and StartEngine close behind. Nearly 100 new offerings were filed in May—a flood of potential unicorns hiding in plain sight.”