Netcapital Inc (NASDAQ: NCPL) is a fintech company that operates an SEC-registered, FINRA-member online funding portal allowing private companies to raise capital from both accredited and non-accredited investors under Regulation Crowdfunding (Reg CF) and Regulation A (Reg A) of the JOBS Act. Revenue comes from fees charged to private companies for listing on the Netcapital platform at netcapital.com, supplemented by cash fees and equity positions received through its consulting subsidiary, Netcapital Advisors Inc. The company operates in the online private capital markets space alongside other online capital portals, which the 10-K filed August 12, 2025 identifies as competitors with significantly greater resources. As of April 30, 2025, Netcapital had recognized a cumulative non-cash loss of $19.9 million from write-downs of equity securities held in early-stage portfolio companies, and reported a net loss of $4,986,317 for fiscal year 2024. The company depends on a small number of large issuers for a material portion of revenue. It does not pay cash dividends.

Revenue model

Listing fees charged to private companies raising capital on the Netcapital funding portal; cash consulting fees from Netcapital Advisors Inc. for marketing and strategic advisory services; equity positions received in lieu of cash from select portfolio companies; and historically, unrealized gains on equity securities held in early-stage companies.

Products and services

Netcapital funding portal (netcapital.com): Reg CF and Reg A online capital-raising platform offering issuers automated onboarding, regulatory document filing, compliance review, custom offering pages, third-party transfer agent and custodial services, email marketing to a proprietary investor list, and rolling closes. Netcapital Advisors Inc.: marketing and strategic consulting subsidiary. Netcapital Securities Inc.: licensed broker-dealer subsidiary conducting Reg A offerings. Netcapital Systems LLC: holds a software license agreement with Templum Markets LLC for potential secondary trading of private securities via an ATS, paused as of the filing date.

Customers and end markets

Issuers: private companies seeking to raise capital online, with a disclosed dependence on a small number of large issuers. Investors: both accredited and non-accredited retail investors seeking access to private company investments. End market is early-stage and private company capital formation in the United States.

Value-chain role

Intermediary and marketplace operator sitting between private company issuers and retail or accredited investors; also acts as a strategic advisor and minority equity holder in select early-stage portfolio companies.

Geographic exposure

United States. The funding portal is regulated by the SEC and FINRA. The Templum ATS agreement covers 53 U.S. states and territories for trading of private securities.

Competitors

Other online capital portals (named in the 10-K as competitors with significantly greater resources; specific names not disclosed in the filing excerpts)

Source: SEC 10-K, filed 2025-08-12

Industry: Finance Services Peers: Blackstone Inc Enterprise Diversified Inc Firsthand Technology Value Fund Inc VetaNova Inc.