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What A Trump Presidency Means for Equity Crowdfunding
+ StartEngine launches another raise
Caleb Naysmith
November 07, 2024
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Latest News
StartEngine launched another equity crowdfunding campaign last Friday. The company took a few months to gain reservations, and now they’ve cleared $1 million raised in under a week. Read all about it here:
The election is over, and Donald Trump is the 2024 winner. What does this mean for equity crowdfunding? Here’s the full story, and I added some thoughts below too:
Silicon Prairie is quietly leading the way within equity crowdfunding. Not typically by amount raised, but by innovation and integrations within traditional finance. The latest example? Read it all here:
All these stories and more can be read on Media.Hubtas.Com
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As our newsletter continues to grow, we’re seeing more and more people new to the equity crowdfunding realm. While we publish plenty of helpful guides and content to help you get started, our suite of industry-leading tools makes investing in startups easier than ever.
Notably, we built HubtasGPT to help investors at every level learn and master equity crowdfunding. HubtasGPT is an investment analysis tool designed to assist users in writing investment reports on specific companies or learn anything you want to know about equity crowdfunding. It leverages data from Hubtas, our platform that provides access to investment crowdfunding data, to help users analyze and summarize information about companies currently accepting investments from retail investors. HubtasGPT can refer to resources such as company websites or SEC filings to provide detailed answers and make calculations based on the given information.
Trump & Equity Crowdfunding
The stock market is largely politically agnostic. Regardless of party, the markets tend to keep chugging along. That being said, every presidency has their own way of doing things, and have their own priorities related to markets. For example, the markets thrived under Biden, but he rarely mentioned it as a priority. Despite a number of large anti-trust cases against the likes of Nvidia, Google, Amazon, Meta and more… their stock prices were largely unaffected. If one of these companies were required to break up, that would be a different story. But that would still only affect that individual company, and not affect the larger stock market very much.
Given that Trump already has had a 4 year presidency, we largely know what to expect. As many remember, he regularly mentions the stock market, and the market would respond heavily when he made tweets about it. In one instance, he called out Warren Buffett for selling Airline stocks in 2020, which sent them rallying after a steep sell off from covid.
Trump also pushed the fed to keep interest rates low to make sure companies had plenty of liquidity to keep the stock market humming along. Interest rates are already dropping so that trend will likely continue, which will be the continued driving force behind the stock marketing continuing to climb. As we’ve seen, however, just because the stock market is climbing, that doesn’t mean equity crowdfunding/venture capital will thrive.
Venture capital is still struggling because IPOs are still slow. Lower interest rates and easier access to capital are the key to more IPOs, which will only continue under Trump.
Another reason to think interest rates will continue to drop under Trump is his promises to bring on names like Elon Musk to cut down on government spending to take on the national debt. It’s nearly impossible to pay off the debt at current rates. In 2024, interest on the national debt is nearly $1 trillion. The U.S. collected just under $5 trillion in FY 2024 for revenue. With interest on our debt now becoming our largest spending source, the easiest way to begin making a dent in our national debt would be dropping interest rates to near-zero levels in order to reduce the interest payments on our debt.