Statement Summary
The SEC has published three reports analyzing capital formation in the U.S., focusing on Regulation A, crowdfunding, and beneficial ownership in private funds. The Regulation A report shows over 1,400 offerings raised more than $9.4 billion from 2015 to 2024, highlighting small issuers with early-stage growth. The crowdfunding analysis from 2016 to 2024 documented over 8,400 offerings seeking around $560 million, emphasizing its role for small companies. Lastly, the beneficial ownership report examined hedge funds from 2013 to 2023, finding that concentrated funds grew faster and offered more liquidity, while unconcentrated funds had slightly better gross returns. Overall, these reports provide crucial insights into market dynamics, supporting informed public understanding.
Original Statement
SEC Publishes Data on Regulation A, Crowdfunding Offerings, and Private Fund Beneficial Ownership Concentration
Washington D.C., May 28, 2025 — The Securities and Exchange Commission’s Division of Economic and Risk Analysis has published three new reports that provide the public with information on capital formation and beneficial ownership of qualifying private funds.
The first two papers—analyses of the Regulations A and Crowdfunding markets—provide valuable information on how capital is being raised in the United States, particularly by smaller issuers. During the periods reviewed (2015 to 2024 for Regulation A and 2016 to 2024 for Regulation Crowdfunding), more than $10 billion was raised.
The third paper—an analysis of beneficial ownership concentration and fund outcomes for qualifying hedge funds (QHFs) and their advisers from 2013 to 2023—provides information on the interaction of beneficial ownership concentration, portfolio liquidity, investor liquidity, fund leverage, performance, and margins.
“Today’s reports provide key information on the capital markets,” said Robert Fisher, Acting Chief Economist and Director of the SEC’s Division of Economic and Risk Analysis. “Understanding how capital is being raised and the interaction of ownership concentration with fund outcomes for private funds informs not only the Commission but the public about essential parts of our markets.”
The Three Reports Issued Today
- Analysis of the Regulation A Market: A Decade of Regulation A provides statistics on the state of the Regulation A offering exemption over the past decade. It documents the level of offering activity and reported proceeds as well as the characteristics of issuers and offerings relying on this exemption. There were more than 1,400 offerings during this period seeking an aggregate of more than $28 billion in capital. Approximately $9.4 billion in proceeds was reported by more than 800 issuers. A typical Regulation A issuer was relatively small and young, and most issuers had not yet established a record of profitability.
- Analysis of Crowdfunding Under the JOBS Act: This report analyzes offering activity in the Title III securities-based crowdfunding market between May 16, 2016, (effective date of Regulation Crowdfunding) and December 31, 2024. During this period, there were more than 8,400 offerings initiated by more than 7,100 issuers, excluding withdrawn offerings. The offerings sought a total of approximately $560 million based on the target (minimum) amount, with a maximum aggregate amount sought of approximately $8.4 billion. The median issuer had approximately $80,000 in total assets, including $13,000 in cash, $60,000 in debt, $10,000 in revenue, and three employees.
- Beneficial Ownership Concentration and Fund Outcomes for Qualifying Hedge Funds: This report describes the relationship between beneficial ownership concentration and fund outcomes for QHFs and their advisers from 2013 to 2023. Over this period, concentrated funds exhibited faster growth than unconcentrated funds. Concentrated funds hold more liquid assets and offer more liquidity to investors relative to unconcentrated funds. However, both portfolio and investor liquidity have declined over the sample period. The gross return of unconcentrated funds is on average 1.2% higher than concentrated funds, but their net return is only 0.1% higher, indicating that the gross performance advantage of unconcentrated funds is offset by higher margins.
The Division of Economic and Risk Analysis integrates financial economics and rigorous data analytics into the SEC’s core mission. It conducts detailed, high-quality economic and statistical analyses to advise on Commission matters and helps identify and respond to issues, trends, and innovations in the marketplace.
Last Reviewed or Updated: May 28, 2025
