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EarlyIQ, the Crowdfunding Professional Association, and Crowdfund Capital Advisors Announce Release of US Equity Crowdfunding Investment Benchmark Study
Industry-first nationwide study shows strong appetite for investment and demand for transparency in the equity crowdfunding capital market
San Diego, California – 3/14/2013: EarlyIQ, Inc., the Crowdfunding Professional Association (CfPA), and Crowdfund Capital Advisors (CCA) today announced the availability of the CrowdfundIQ Benchmark Study - the industry’s first national study on likely US equity crowdfunding investors. The Study, published today, provides unique and quantifiable insight into the demographics, investment intent, planned investment frequency, and views of likely equity crowdfund investors in the United States.
Highlights from the study include:
- 58% of all respondents indicate high interest in early stage equity investment.
- Annual market size estimate at maturity likely reaches $20B-40B – similar to angel and venture capital markets.
- #1 demand by likely investors is transparency by the management team.
- Government review of issuing companies is not a requirement of likely investors with only 5% requiring.
- Investment intent rises 4-times when a neutral 3rd party provides review of the management team.
- The likely investor profile is middle aged, upper middle income, urban/suburban dwelling and college educated, with almost 70% indicating a high likelihood to invest.
- Anticipated investment frequency is 2-3 investments annually, averaging just under $2,000 per investment, for investors with annual household income $75K+.
“The most intriguing aspect of the study is the strong appetite for investment and the demand for transparency in the market,” noted Steve Yin, co-founder and CEO of EarlyIQ. “We’re also encouraged by the uniformity of interest across demographics. We believe it speaks to an American desire to support entrepreneurship,” Yin added. Jason Best, co-founder of CCA and a leading advocate of the creation and passage of the JOBS Act commented that “The passage of the JOBS Act was a key milestone for democratizing capital in the US. This research demonstrates the broad appeal in middle America and we believe demonstrates a mandate rollout of equity crowdfunding in the US.”
Equity based crowdfunding is a nascent market in the US, created with passage of the JOBS Act in April 2012 and awaits final rules from the SEC. “As shepherds of this new equity crowdfunding industry, we’re excited to support the market by producing this and future studies that provide hard data and insight into the market,” said Luan Cox, Board Member of the CfPA. “We are working hard to ensure that accurate and timely information is shared so that informed decisions can be made,” she added.
About the study:
The study was conducted in time sequence throughout 2012, both before and after the passage of the JOBS Act. The nationwide online survey was conducted with a random sample of 480 complete respondents in total with a minimum qualification of an annual income of $25K. The study carries a statistical precision of +/-4.5% overall. A copy of the report is available for free viewing at https://www.earlyiq.com/what-we-do/research-report and at www.slideshare.net search “CrowdfundIQ Benchmark Study”.
Early IQ, Inc is a San Diego, California based, hosted information and analytics company serving early stage capital markets including the crowdfunding, peer lending, angel, accredited, private equity, and venture capital. Our core technology – Diligence 3.0 – revolutionizes transparency for early stage decision support. As the #1 source for investors and industry-standard trustmark for ratings, research, and analysis on private start-up ventures, we facilitate efficient markets by providing information and services for Crowdfunding Portals and other professional investment markets. https://www.earlyiq.com/ , email@example.com.
The Crowdfunding Professional Association (CfPA) is a nonprofit trade organization that was established shortly after the signing of the Jumpstart Our Business Startup Act (“JOBS Act”) on April 5, 2012. The CfPA is dedicated to representing the Crowdfunding industry and supporting the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) during the rule making period while providing the industry with education, a professional network and the tools necessary to cultivate and balance a healthy ecosystem that will accelerate capital formation and ensure investor protection whenever possible. http://cfpa.org/, firstname.lastname@example.org.
Crowdfund Capital Advisors (CCA) is an advisory, implementation and education firm founded by Jason Best and Sherwood Neiss (founders of Startup Exemption), the leaders of the investment-based Crowdfunding movement. CCA provides comprehensive advisory solutions for both the public and private sector - working with foreign and domestic governments, SEC, FINRA, Crowdfunding platforms and industry leaders, CCA helps clients succeed in this new era of financing, in a way that few can match. http://crowdfundcapitaladvisors.com/ , email@example.com.