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During the seven day period, the Regulation D market contracted at a slightly faster pace both in terms of funds raised by issuers and number of transactions. The amount of money raised was propped by a small number of companies that raised unusually big financing rounds. Additionally, the activity of the VC & SMB market contracted with a fundraising and activity growth rates that underperformed the overall Regulation D market.
VC and operating companies captured 3.2% of the overall pool of money raised via Regulation D, however they accounted for 35% of Form D filers during the past seven days. Issuers collected 68 cents for each dollar offered, representing a decline of 14% for the period. Following a more stable trend, compliance scores on average reached 94.
45 issuers, or 31%, checked ” Other “ as industry when filing with the SEC. XDATA through its curating process narrowed it down to 26 or 6.9%.
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During the past seven days, the Regulation D market expanded at a faster pace in terms of transactions while the pool of money raised grew at milder rate. Furthermore, the activity of the VC & SMB market expanded at a slower pace than the overall Regulation D market, though fundraising growth outpaced it.
Last week, the number of fundraising transactions increased by 15% to 223. Reg D issuers were significantly more bullish than before and offered the market $2.34 billion worth of securities, an improvement of 91%. Charting a similar path, investors purchased much more, subscriptions rocketed 122% to $1.89 billion.
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“The average financing round gathered by seed stage companies was stable and reached $1 million. Investors increased their subscriptions to $58 million via 43 closed and partially closed placements. Seed stage Reg D offerings accounted for 23% of the issuances and 6.9% of the money raised. The average compliance score for companies falling into this development stage bracket stood at 96.
Analysis: the activity of seed stage issuers expanded, however their fundraising growth was below the overall SMB market benchmark.”
“Biotech companies sold 51% of their planned issuances, a steep decline from 114%. Slightly smaller private placement transactions typified the period. On average, they eased by $158,804 to $1 million. Investors subscribed to $24 million worth of securities (up 101%) via 18 Reg D offerings (up 125%). Biotech companies were behind 2.8% of the money raised during the seven days ending on June 12, and were a negligible market participant in terms of amount raised. Issuers saw their compliance score drop to 92 from 99.”
“New York-headquartered companies funneled 8.7% of the pool of money available to VC-backed and operating companies and accounted for 7.5% of the activity. Financing targets set by issuers were 95% met. They captured 13 cents more for each dollar offered. Reg D issuers on average collected more money per security issuance than before. The average financing size went up by $1 million to $5 million. 15 private placement transactions were launched, eventually gathering $72 million (up from $51 million) via 14 fundraising events. Companies saw their compliance score go down to 90 from 95.
Analysis: the activity in the State of New York expanded, however the growth of funds raised outperformed the market.”
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“The activity of the VC & SMB market contracted with a growth rate that underperformed the overall Regulation D market.
VC and operating companies captured 13% of the overall funds raised via Regulation D, however they represented 34% of Form D filers during the seven days ending on June 5. Financial backers acquired 75 cents for each dollar offered, representing a decline of 22% for the period. Following a more stable trend, compliance scores on average reached 95.
During the week, the number of closed and partially closed financing rounds decreased by 31% to 159. Reg D issuers were much less bullish than before and offered the market $936 million worth of securities, a decline of 66%. Following a similar pattern, investors subscribed to much less, subscriptions shrank 74% to $698 million.”