Netcapital Pivots From Crowdfunding to Capital Markets Infrastructure

Netcapital is initiating a significant strategic pivot, shifting its business model away from securities crowdfunding to focus on providing capital markets infrastructure. This transition comes as the firm seeks to stabilize its operations and find new avenues for growth.

Strategic Pivot Amidst Financial Challenges

The decision to migrate from listing online securities offerings follows a period of financial instability. In 2025, Netcapital reported losses exceeding $28 million as the company struggled to expand.

This downturn is reflected in the company’s market valuation. While the shares previously reached a 52-week high of $8.75, they closed at approximately $0.82 on Friday, resulting in a market capitalization of $6.42 million.

Did You Know? Netcapital’s leadership has seen rapid turnover; Rich Wheeless served as CEO for only a few short months after taking the role in December 2025.

New Leadership and Future Direction

Todd Violette, who became CEO on April 13th, is leading the company’s new direction. He plans to leverage existing infrastructure, including artificial intelligence and market data, to better support growth-stage firms.

Violette is scheduled to address the specific details of this new strategy, his near-term priorities, and the reasons for the migration during a call on Thursday, May 28, 2026, at 4:30 p.m. ET.

Expert Insight: Samantha Carter notes that pivoting toward infrastructure and AI suggests a move toward a B2B model. This could be an attempt to create more predictable revenue streams compared to the volatility of securities crowdfunding.

Potential Outlook

The success of this pivot may depend on how effectively the company can integrate its AI and market data tools. If successful, the company could potentially stabilize its market position and attract a different class of growth-stage clients.

A possible next step for the firm may be a detailed rollout of its infrastructure services following the CEO’s upcoming address. This shift could lead to a change in how the market perceives the firm’s long-term value.

Call Access Details

Interested parties can join the May 28th call using the following information:

Participant access: 844-985-2012 or 973-528-0138
Conference entry code: 775822

Frequently Asked Questions

Why is Netcapital moving away from securities crowdfunding?

The company decided to pivot as it struggled to grow, having lost more than $28 million in 2025.

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Who is the current CEO of Netcapital?

Todd Violette became the CEO on April 13th, replacing Rich Wheeless.

What technologies will Netcapital leverage in its new strategy?

The firm plans to use artificial intelligence and market data to support growth-stage firms.

Do you believe a shift toward infrastructure is the right move for struggling fintech platforms?