🎊2022🎊 – the $2 billion year for local investing!
V.1, N.14
According to Crowdfund Capital Advisors, investment crowdfunding – one of the most popular tools for putting your money where your feet are – is projected to hit the $2 billion mark this year. Hard to believe, but the federal rules governing crowdfunding were only finalized in 2016. Over the past five years, 1.3 million investors have poured $1.1 billion into 4,850 companies across 1,300 communities. The universe of participating companies is now valued at more than $33 billion and has created nearly 100,000 jobs. The average successful raise by companies is steadily increasing and now exceeds $450,000. Perhaps most striking is that the total amount invested via crowdfunding in 2021 exceeds everything invested via crowdfunding between 2016 and 2020 put together, despite the pandemic. In short, all those pennies found behind the couch cushions are adding up to real money!
As crowdfunding expands, it’s important to note that the crowd facilitating the deals is getting smaller. Even though nearly 100 crowdfunding portals either were or are still federally licensed, about 80% of the deals have occurred on just four of them: WeFunder, StartEngine, Republic, and SeedInvest. More competition is needed. That’s the only way to lower fees for participating companies, which are currently running at 6-8% of successful deals.
There’s more good news for the new year – despite the continuing pandemic. For instance, farmers, bakers, and producers in South-Central Wisconsin recently formed the Community Kitchen Co-op – a booming business delivering meal boxes to local consumers. And two states away, Renew Indianapolis’s Build Fund and Edge Fund, which are Community Development Financial Institutions (CDFIs), have launched investment funds specifically for Indy’s small businesses and affordable housing.
Finally, in the “coming attractions” department, we will soon have a website that will make it easier for you to find new connections, old issues, and Main Street Champions. Stay tuned for details!
– Michael Shuman, Publisher of The Main Street Journal
NEWS
Investment Crowdfunding Tops $1.1 Billion In 2021, Predicted To Double In 2022, Crowdfund Insider (December 30)
Community Kitchen Co-op in Wisconsin Connects Local Farmers to Consumers, FarmProgress (December 29)
How CDFIs Can Help Small Businesses Seeking Loans, Inside Indiana Business (December 22)
PARTNER VOICES
Creating a Regenerative Business Ecosystem, Written by Professor Bennet A. Zelner for Jenny Kassan’s blog (December 20)
The Democracy Collaborative & Somerville, MA Launch Community Wealth Building Initiative, The Democracy Collaborative (December 10)
EVENTS
California Cooperatives – Webinar. Thursday, January 13, 11am PT. Learn how coops are creating good jobs and affordable quality housing and childcare throughout California..
Get Inspired: Shop Black-Owned Campaign – Webinar. Wednesday, January 12, from 8am-12pm PT. Learn to launch a Shop Black-Owned campaign in your own community.
ICYMI
How The State Small Business Credit Initiative Can Aid Employee Ownership Transitions, Fifty by Fifty (December 13)
A Worker-First Restaurant Model Takes Ideas From Private Equity, Next City (December 21)
Capitalists Are Dispensable, Laborers Are Not, CounterPunch (December 28)
The Black-Owned Startup “Turning NYC Buildings Into Teslas”, Next City (July 30)
JOBS BOARD
Candide Group is seeking a full-time Managing Director of their Climate Justice Fund (Bay Area preferred, open to other geographies with prior approval)
Mission Driven Finance is seeking a full-time Real Estate Strategist for Childcare Facilities and a full-time Senior Associate of Knowledge Systems (both positions can be fully remote)
BECOME A MAIN STREET CHAMPION
Have you always wanted to start a local investment club? A website of local investment offerings in your community? A local investment study group? Whatever your interest or ambition, we invite you to “go public” to help others in your region find you, scheme with you, and start a local investment movement in your community. Our goal is to identify dozens, then hundreds, then thousands of Main Street Champions like you across America. We already have Main Street Champions across the U.S., from San Luis Obispo, CA to Providence, RI, and even Australia! Together, we can move our hard-earned savings from Wall Street back into our communities. Fill out the intake survey below to join this first cohort!
SOME OF The MSJ’s VINTAGE ISSUES
Stop the Steal: Threats to your self-directed retirement savings
How DC is saving small business through investment crowdfunding
About The Main Street Journal
The Main Street Journal aims to catalyze the movement of $50 trillion from Wall Street to Main Street to facilitate economic development and economic justice. It’s sponsored by the National Coalition for Community Capital, with a grant from the Heron Foundation. We welcome feedback about everything, from our design to content. And we welcome suggestions of other groups to involve as partners, and other information to include. Please send ideas to Sophia Leswing at sophia@main-street-journal.com.
PARTNERS
We welcome any nonprofit or for-profit committed to local investment as a partner. If your organization is interested, please contact Sophia Leswing at sophia@main-street-journal.com.