The Rise of Retail Investors in Private Markets
Individual investors are becoming a real force in private markets. Here’s the data, what’s driving it, and what it means.
Short answer
Individual investors are becoming a major force in private markets. Retail capital in private markets has grown quickly in recent years, and equity crowdfunding has moved from experiment to an established channel. The shift is driven by new rules, better technology, and demand for access that used to be reserved for institutions and the wealthy.
The shift, in numbers
Private markets used to be the domain of institutions and accredited insiders. That’s changing fast. By McKinsey’s estimate, U.S. retail capital flowing into alternative assets reached about $204 billion in 2025, more than double the roughly $92 billion in 2023. In equity crowdfunding specifically, KingsCrowd reported that U.S. companies raised $378.3 million through Reg CF in 2025, with combined Reg CF and Reg A+ funding rising to $924.8 million.
Figures are drawn from the McKinsey Global Private Markets Report and the KingsCrowd 2025 Investment Crowdfunding Annual Report. Verify the latest numbers before republishing.
What’s driving it
Three forces: regulation that opened access (the JOBS Act and its later expansions), technology that made investing online simple, and rising demand from individuals who want a stake in what they use and believe in.
What it means for investors
More access also means more responsibility. These are high-risk, illiquid investments, and the same rules of thumb apply: diversify, invest only what you can afford to lose, and read the disclosures. Start with the risks and how to evaluate a startup investment.
What it means for founders
A larger pool of individual investors means founders can raise from their own community and customers, not just venture funds, and turn supporters into owners. See our complete guide to equity crowdfunding.
Where it’s heading
The direction is toward broader access, with the open question being whether disclosure, education, and liquidity keep pace. More on that in the future of crowdfunding.
Frequently asked questions
Why are retail investors moving into private markets?
Regulation opened access, technology made it simple, and individuals increasingly want a stake in what they use and believe in.
How big is retail participation now?
It’s grown quickly. McKinsey estimates U.S. retail capital into alternatives reached about $204 billion in 2025, more than double 2023.
Is this good for investors?
It expands access, but these remain high-risk, illiquid investments. The usual rules of thumb apply.
What’s driving the trend?
Regulation, technology, and demand for access that used to be reserved for institutions and the wealthy.
How can everyday people invest in startups?
Through equity crowdfunding, most often under Reg CF, on registered platforms like Highlander.
Key takeaways
Retail capital is a fast-growing force in private markets.
Equity crowdfunding is now an established channel.
It’s driven by regulation, technology, and demand.
More access means more responsibility for investors.
Keep reading
Start a track: Investing 101
- 01What Is Equity Crowdfunding?
- 02Why Invest in Startups Through Equity Crowdfunding?
- 03What Are the Risks of Equity Crowdfunding?
- 04How to Evaluate a Startup Investment
- 05Is Equity Crowdfunding Right for You?
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