Three key areas have helped drive this growth in the crowdfunding industry:
- 1. Technology: Investment software is more available and cost-effective than ever. Today, there is a plethora of investment software and service providers that make it relatively easy for issuers to get set up.
- 2. Compliance and Legal: The JOBS Act, signed into law in 2012, allowed non-accredited investors to invest in startups and mini-IPOs. Essentially, the CF and Reg A offerings. This blew the doors open for companies and very early adopters.
- 3. Retail Investor Demand: There is enormous demand from retail investors. Retail investors want access to more options with which to diversify their portfolios.