Space Funding

Hey crew,

Jose here with another Space Funding Newsletter.

Fourteen years ago, Congress passed the JOBS Act and accidentally created the most powerful retail investor acquisition channel in American history.

Most founders missed the first wave.

The INVEST Act is wave two, and it's bigger.

SECTION 01
A Market Born in 2012. Now Approaching $1 Billion a Year.

The JOBS Act was signed into law on April 5, 2012. It created Regulation Crowdfunding, Regulation A+, and modernized Regulation D — essentially opening private capital markets to retail investors for the first time in U.S. history.

What happened next was exponential. Reg CF went live in May 2016 with a $1M annual cap. The SEC raised it to $5M in 2021 — and the market exploded. By 2025, total investment crowdfunding surpassed $924 million raised in a single year, a 58% jump from 2024. Reg A+ alone surged 124% year-over-year to $546.6M.

That growth curve — from $0 in 2012 to nearly $1B in 2025 — isn't an accident. It's the predictable result of regulatory expansion meeting digital distribution. And Congress just pulled the lever again.

The Growth Arc:

14 Years of Exponential Regulatory Expansion

2012

JOBS Act Signed

Private capital markets opened to retail investors for the first time. Reg CF, Reg A+, and modernized Reg D were created.

2016 

Reg CF Goes Live

$1.07M annual cap. Early adopters build the rails. Most founders ignore it.

2021 

SEC Raises Reg CF Cap to $5M

Market inflects. Nine-figure Reg A+ raises emerge. Paid acquisition becomes viable as ticket sizes grow.

2025 

$924M Raised. Record Year.

Top 10% of issuers capture nearly all meaningful capital. Infrastructure separates winners from wishers.

2026 

INVEST Act — House Passed 302-123

The most sweeping capital formation overhaul since 2012. Headed to the Senate now.

SECTION 02
What the INVEST Act Actually Does for Founders

On December 11, 2025, the U.S. House passed H.R. 3383 — the Incentivizing New Ventures and Economic Strength Through Capital Formation Act — with a decisive bipartisan vote of 302-123. Every Republican voted for it. 87 Democrats crossed the aisle to join them.

This is not a niche bill. It bundles more than 20 pieces of capital markets legislation explicitly designed to expand access to capital for small businesses, broaden the investor base, and modernize private market infrastructure. It now sits before the Senate — and the Trump administration wants it signed.

Why This Administration Is Different

The Trump SEC, led by Chair Paul Atkins, has been openly signaling that regulations should promote, not stifle fundraising options for startups. New SEC leadership is actively removing guidance that micromanaged capital markets. Treasury Secretary Bessent called this a "new golden era" of deregulation. For founders running investor acquisition campaigns, this is the most favorable regulatory environment since 2012.

The Key Provisions

SECTION 03
Why a $20M Reg CF Cap Is a Structural Game-Changer

Right now, the $5M cap forces founders who need more capital into a choice: stop raising and leave money on the table, or layer multiple offerings in sequence, which fragments momentum, resets investor relationships, and burns advertising ROI.

A $20M cap changes the entire calculus of paid acquisition. When your ticket size is $1,000, and your ceiling is $20M, you can deploy ad spend at scale across the full campaign arc, not just in a compressed 90-day sprint against a $5M wall.

The Spacefunding Principle

We've always built campaigns around the $500 - $1,000 minimum ticket because it's the threshold where paid advertising ROI becomes defensible. A $20M Reg CF cap doesn't just raise the ceiling, it validates the entire investor acquisition model. The founders running e-commerce-style funnels today will be positioned to capture that expanded market on day one of Senate passage.

5 Moves to Make Before the Senate Vote

1. Build Your Investor List Now — Not After Passage

Every name on your investor list is an asset you own. Senate passage will trigger a surge of new campaigns competing for the same retail investor attention. Build your list while acquisition costs are still relatively low.

2. Architect Your Funnel for a Higher Cap

If you're currently planning a $5M Reg CF raise, design your funnel infrastructure to scale to $20M. The landing pages, email sequences, and ad creative you build now should be modular enough to extend — not rebuilt from scratch.

3. Get Comfortable With Reg A+ Mechanics

Reg A+ already allows up to $75M. If your raise ambitions exceed even a $20M Reg CF cap, understanding the Reg A+ funnel — where DealMaker alone facilitated $292M in 2025 — is non-optional preparation.

4. Audit Your Cap Table for a Larger Investor Base

A $20M Reg CF cap could mean thousands more investors on your cap table. SPV structures, investor communication systems, and data ownership infrastructure need to be in place before the round closes — not after.

5. Watch the Accredited Investor Expansion Closely

Expanding the accredited investor definition by knowledge and experience — not just income — could dramatically expand the total pool of qualified investors available for your Reg D 506(c) campaigns running alongside a public raise.

SECTION 03
The Bigger Picture: This Market Is Still in Its First Inning

JPMorgan's retail private markets fund just crossed $1 billion in AUM. They're building infrastructure to deliver private market exposure at scale to everyday investors — the same investors you're trying to reach through your Reg CF and Reg A+ campaigns. This is validation, not competition.

When the largest financial institution in the world starts competing for retail investor attention in the private markets, it doesn't shrink the pie — it expands it. It legitimizes the asset class for millions of investors who haven't yet made their first private placement.

The Trend Line Is Undeniable

From $0 in 2012 to $924M in 2025, with a bill on the Senate floor that could 4x the Reg CF cap, expand the accredited investor definition, and reduce regulatory friction across private markets — the trajectory of this market is not up for debate. The only question is whether you're positioned to capture the next phase of growth, or watching it from the outside.