Netcapital Inc. provides private company investment access to accredited and nonaccredited investors through its online portal and its broker dealer subsidiary. The company operates a Regulation Crowdfunding platform that enables early stage businesses to raise capital from a broad investor base. In addition Netcapital Inc. offers services for Regulation A offerings and is expanding its capabilities to support tokenized securities and real world asset offerings. The firm’s primary market is the fintech crowdfunding industry where it facilitates capital formation for startups and growing businesses.

Netcapital Inc. generates revenue primarily from fees charged to issuers that use its platform. The funding portal collects a listing fee for each offering, a portal fee calculated as a percentage of the capital raised at closing and beginning in fiscal year 2025 a success fee paid in equity of the funding portal customer. Ancillary services such as rolling closes and compliance reviews also produce fees. For broker dealer activities Netcapital Securities charges a listing fee for Regulation A offerings and a success fee based on the amount of capital raised under that exemption. The firm previously earned consulting fees and equity stakes from advising portfolio and non portfolio clients though it has limited such engagements in recent periods. Revenue is also derived from occasional gains on investments and insurance recoveries.

Netcapital Inc. competes in the equity crowdfunding space alongside platforms such as SeedInvest Wefunder StartEngine and Republic. Its competitive advantage lies in possessing a registered broker dealer which allows it to host Regulation A offerings and to distribute securities through traditional broker dealer channels. The company’s recent acquisitions of blockchain related assets and a digital design studio aim to differentiate its platform by enabling tokenized securities and non fungible token based offerings. While the firm is smaller than some established rivals its integrated model of portal broker dealer and advisory services provides a unique value proposition for issuers seeking end to end capital raising solutions.

Netcapital Inc. serves two main customer groups. The first group consists of private companies seeking to raise capital through Regulation Crowdfunding Regulation A or tokenized security offerings. These issuers range from early stage startups to more mature businesses looking for alternative financing. The second group comprises investors who browse the portal to purchase securities including accredited investors nonaccredited investors and retail participants. The filing does not disclose specific customer names but indicates that a small number of large contributors accounted for a significant portion of revenue in recent periods.