THE MARKET FOR FINANCING OF SMALL BUSINESSES IS HUGE

 In SEO and Internet Marketingpurus

According to the 2014 Annual Performance Report published by the Small Business Administration,

https://www.sba.gov/content/fiscal-year-2016-congressional-budgetjustificationannual-performance-report

Approximately 51,500 small businesses receive funding in 2014 through SBA’s main lending programs. Venture capitalists invested $49.3 billion in 4,361 transaction involving 3,665 startups, according to the National Venture Capital Association Yearbook for 2015. However, even though companies funded by venture capitalists tend to have a better survival rates, the majority of startups fail within five years.

According to the Securities and Exchange Commission, in Release 33-9974, the average size of equity-based crowdfunding offerings was $175,000. Although there are no statistics available for 2015, it appears that  this amount could increase substantially in the future as a result of the  passage of Regulation CF.

A startup company could potentially use Regulation CF as its  IPO, to be followed up by subsequent offerings if the business is successful.

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