Press Release
SAN DIEGO, CA, Mar 14, 2013 (MARKETWIRE via COMTEX) --
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."
About EarlyIQ
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/ , info@earlyiq.com.
About CfPA
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/ , info@cfpa.org.
About CCA
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/ , info@theccagroup.com.
