Raise $50,000 to $5,000,000 with crowdfunding

If you are interested in crowdfunding, you may have many questions about this fundraising system. One of the most common questions relates to the amount of money you can raise on a crowdfunding platform. In this article we will answer this question. Read on to find out more.

On the internet you may have read insights and experiences from industry leaders, experts and fundraisers. But as for the maximum amount, it can go up to millions of dollars. So the question is, what is the average amount of capital that can be raised through crowdfunding?

regulatory limits

First off, regulators are responsible for setting and toning and defining the cap on raising capital. Authorized crowdfunding platforms offer their services according to certain rules and do not exceed the maximum amount of money collected through the portal.

Generally, they have stated this limit in the FAQ section or on a crowdfunding platform webpage. Given below are some statistics:

Prior to 2021, regulation crowdfunding startups were allowed to raise $1,070,000 annually. However, the limit has been increased to $5 million, which is good news for startups.

By following Regulation D, you can raise as much money as possible from accredited investors. Some platforms like Wefund allow you to run Regulation A+ campaigns for free. And you can raise up to $1 million at most.

If you don’t know anything about the American regulatory alphabet, you can go through the following simple terms:

Reg A: Allows you to raise between $20 million and $75 million through mini IPOs, which is ideal for small issuers and early stage companies.

Reg D: It is a set of rules for large campaigns and projects that require a flow of unlimited funds. Only big players can participate in such deals.

Reg D: It is more popular than debt and public stocks. Generally, these campaigns are run by private funds, technology companies, and real estate.

Reg CF: It is an ideal framework for startups that attract public attention to raise capital.

According to reports published by The Crowdfunder, the average amount raised for each Reg CF offering in 2020 was $342,000.

Wrap up

When it comes to crowdfunding, the sky is the limit if the limit is not regulated by an authority. In fact, the average amount raised through crowdfunding platforms varies by country, platform, and niche. Regardless of what type of startup you have started, you can start a crowdfunding campaign to raise capital for your business and get it off the ground.