Regulation CF, or Registration CF, This is the smallest of the security crowdfunding exemptions issuers can raise so far: 5 million dollars. Still, the exemption helped create an industry in which small firms could access capital through a regulated securities offering open to everyone, not just Accredited Investors.
Reg CF had a checkered tenure. Initially, businesses were only able to raise $1 million; this was too little and revealed a lack of knowledge on the part of the policy makers who passed the law. The exemption was later increased significantly to $5 million, but many in the industry believe this amount remains too low because Seed funding rounds can easily exceed this figure. Some prefer a $20 million funding cap to create a better tiered process for growing companies.
king crowdA data firm that tracks Reg CF proposals recently published an update on the exemption that showed an alarming decline in May. By the numbers, this financial sector has produced the following data points:
- In May 2026, issuers raised a total of $9.7 million under Reg CF. This is a dramatic 59% decrease from April, when $23.6 million was raised. In May 2025, issuers raised $20.9 million (53.9% difference).
- The average amount raised in May was just $25,100. In April, companies raised an average of $59,500. In May 2025, issuers raised an average of $49,300, a decline of 47%.
- The average Reg CF issuer valuation in May 2026 was $36.4 million; It was $38.3 million, down 5% from April and $32.9 million, up 10% from May 2025.
- Total estimated Reg CF issuer valuations were $13.5 billion in May 2026 compared to $15.2 billion in April 2026 and $14 billion in May 2025.
- In total, there were 370 active offerings under Reg CF in May; This figure decreased by 6.6% compared to April 2026 and by 12.9% annually compared to May 2025, when 425 issuers were active.
The top funding platforms have remained fairly stable over the months. Cumhuriyet, Wefunder, StartEngineAnd Deal Maker It constituted 94.1% of the funds collected in May. These platforms also offer support for other exemptions; therefore, Reg CF may not be indicative of their operations.
So what causes Reg CF activity to decrease? The month of May may be abnormal; Let’s see what June will bring.
Additionally, investor interest has focused on artificial intelligence and the hot IPO market. Issuers may not want to compete with these issuers.
Still, policymakers should recognize the benefits of Reg CF and work to improve the online capital formation ecosystem, allowing issuers to access capital and investors to participate in private securities in firms they believe will be successful.
