$5 Million Raised Since Change in Equity Crowdfunding Rules 'Entrepreneurs and investors are embracing' the 'new era of crowdfunding,' according to a group that tracks the funding method.
By Stephen J. Bronner Edited by Dan Bova
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
