DealMaker CEO Rebecca Kacaba Testifies Before Congress on the Future of Online Capital Formation

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DealMaker's leadership in equity crowdfunding and digital capital platforms reaches Washington as CEO shares expertise with House Financial Services Committee

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At DealMaker, we've always believed that efficient capital formation is the foundation of economic growth and innovation. Last month marked a significant milestone in our mission as our CEO and co-founder Rebecca Kacaba was invited to testify before the House Financial Services Committee, sharing insights on how technology is transforming capital raising for American entrepreneurs.

A Historic Moment for Online Capital Raising

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"This is a huge moment, not just for DealMaker, but for the entire online capital raising industry. It's going to define how retail capital gets access to private companies in America."

Rebecca Kacaba CEO of DealMaker

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The invitation to testify underscores the growing recognition of technology's role in democratizing access to capital. As the leading platform in digital capital formation, DealMaker has facilitated over $2 billion in capital raised across more than 900 offerings, directly contributing to an estimated 40,000 new jobs across the country.

The JOBS Act Legacy and Future Growth

In her testimony, Rebecca highlighted the transformative impact of the JOBS Act since its passage in 2012. This landmark legislation created new pathways for entrepreneurs to connect with investors, fundamentally changing how companies raise capital through regulated offerings.

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This remarkable growth demonstrates how digital capital platforms have expanded access to funding beyond traditional venture capital centers, reaching entrepreneurs in communities often overlooked by Silicon Valley and Wall Street.

Powering Economic Resilience Through Technology

The JOBS Act initially opened doors, but technology platforms like DealMaker have amplified its impact by streamlining and digitizing the entire capital formation process. Our platform has transformed how companies connect with investors by replacing cumbersome paperwork with intuitive digital interfaces, automating compliance processes, and providing real-time analytics for fundraising campaigns.

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This technological transformation has been particularly valuable during economic downturns when traditional funding sources become more cautious. Rebecca's testimony emphasized this point with compelling data: "During the worst year of the recent downmarket cycle in 2023, the online capital markets stayed over 40 percent stronger than the VC markets."

This resilience highlights how online capital raising has created a more diverse and stable funding ecosystem, precisely as Congress intended when passing the JOBS Act.

Equity Crowdfunding: Democratizing Access to Capital

One of the most significant benefits of equity crowdfunding and digital capital formation is how it levels the playing field for entrepreneurs from diverse backgrounds. Traditional venture capital has historically favored certain demographics and geographic regions, leaving many innovative founders without access to the capital they need.

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Digital fundraising platforms have proven particularly valuable for founders in regions outside major financial centers and those from underrepresented groups. By providing a transparent, accessible pathway to funding, these platforms enable companies to reach investors who share their vision regardless of location or personal connections.

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Rebecca emphasized this democratization in her testimony, noting that DealMaker has supported companies establishing factories and operations in communities overlooked by traditional capital sources. This geographic diversity strengthens the American economy by creating jobs and opportunities across the country, not just in established tech hubs.

The Entrepreneur's Journey

Throughout her testimony, Rebecca emphasized the human element behind the statistics—the founders who make significant personal sacrifices to build businesses and create jobs.

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These stories reflect DealMaker's deep understanding of the challenges entrepreneurs face and our commitment to providing solutions that streamline the capital raising process.

Regulatory Framework for Continued Growth

A key focus of Rebecca's testimony was the regulatory framework needed to continue this momentum. She advocated for several policy improvements that would further strengthen digital capital formation:

1. Increasing offering limits - Current caps on Regulation A and Regulation CF offerings limit the growth potential for many companies.
2. Harmonizing rules - Simplifying and standardizing regulations across different offering types would reduce compliance burdens for companies raising capital.
3. Expanding capital markets participation - Encouraging broader participation from financial institutions and intermediaries would increase liquidity and investor access.

These recommendations reflect DealMaker's experience working with hundreds of companies across various industries and stages of growth. By implementing these changes, policymakers can unlock even greater economic potential and job creation through online capital raising.

The Future of Capital Formation

As technology continues to evolve, the landscape of capital formation will transform further. DealMaker remains at the forefront of this evolution, developing innovative solutions that make raising capital more efficient, transparent, and inclusive.

Rebecca's testimony highlighted several trends shaping the future of this industry:

• Community-Based Investing - Companies increasingly leverage their existing customer base and community as investors, creating stronger stakeholder relationships.
• Data-Driven Fundraising - Advanced analytics allow companies to optimize their fundraising strategies in real-time based on investor behavior.
• Integrated Investor Relations - Digital platforms now enable ongoing engagement with investors beyond the initial raise, creating opportunities for long-term relationships.

These trends point to a future where capital formation becomes not just about securing funding but building lasting communities around companies and their missions.

Looking Forward: Expanding Access to Capital

The testimony concluded with a forward-looking perspective on how policymakers can further strengthen online capital raising. Rebecca advocated for increasing offering limits, harmonizing rules, and allowing for broader capital markets participation.

These changes would "unlock even more growth in online capital markets, leading to further job creation," benefiting entrepreneurs in communities across America.

Partnering for Growth

Following the testimony, Rebecca reflected on the experience: "It was an honor to be in the room with such brilliant policymakers who truly understand that American entrepreneurs are the heartbeat of the American economy. We're thrilled to see how their guidance will help shape the next wave of American innovation."

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At DealMaker, we remain committed to making capital markets more transparent, efficient, and accessible through our comprehensive capital raising software and services. Our platform streamlines the fundraising process while maintaining strict regulatory compliance, enabling entrepreneurs to focus on building and scaling their businesses.

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The congressional testimony represents not just a milestone for DealMaker but a recognition of how technology is reshaping the financial landscape for the better. As we continue to innovate and advocate for policies that support entrepreneurial growth, we invite companies looking to raise capital to explore how our platform can support their journey.

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DealMaker provides capital raising technology that transforms how companies raise funds online. Our platform supports Regulation CF, Regulation A, and Regulation D raises with advanced compliance tools, investor management capabilities, and transparent analytics.

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