Private securities and crowdfunding surge is forecast to continue in 2022

The market is also expected to expand significantly in 2022 and 2023 as regulated alternative secondary market trading platforms, known as ATSs, start to offer more potential liquidity in a private securities market set to grow from $7 trillion in 2021 to $30 trillion in 2030, according to Forbes.

Rialto Markets predicts this trend will continue as more private companies in the US and worldwide apply this approach to their fundraising, leading to future secondary share trading.

Rialto Markets’ Co-founder Joel Steinmetz said: “There were record months in the US crowdfunding sector during the first half of 2021 – with May being the highest – but there was a much steeper growth curve in the second half of the year, with record investment levels in the final quarter.

“December in the US now looks like it may have matched or exceeded November, which sets the tone for a buoyant 2022, according to our research, and data coming from the major crowdfunding platforms and authorities like Pitchbook.

“We are seeing this pattern ourselves with over $730 million in signed contracts for Rialto Markets at the start of 2022 alone from high growth private companies in the primary market, using our broker dealer infrastructure and technology.

“Additionally, in the secondary market we are being swamped with requests from high growth private companies and marketplaces that offer fractionalized securities wishing to offer regulated trading to their investors through our SEC and FINRA regulated ATS secondary trading platform.”

Cityzenith CEO and Founder Michael Jansen said: “Crowdfunding isn’t for the faint hearted. You must have a strong strategy, a large following, and investors who are going to back the offerings from the outset.

“But it’s also about positioning the brand to win new partnerships and potential larger institutional investors due to the momentum you build through these Regulation CF and Regulation A+ investment offerings.”

PitchBook Data delivers data, research and technology covering private capital markets, including venture capital, private equity and merger and acquisition transactions. It is based in Seattle with regional offices in London, San Francisco, New York City, Mumbai and Hong Kong.