Equity Crowdfunding

What is Equity Crowdfunding?

Equity crowdfunding is a method of raising capital where a company seeks investment from a large number of individuals, each contributing a relatively small amount of money in exchange for equity. This approach allows startups to access funding from a broad audience, bypassing traditional venture capital routes. Equity crowdfunding is popular among early-stage companies looking to expand their investor base.

Benefits of Equity Crowdfunding

• Access to Capital: Allows companies to raise funds from a large pool of investors.
• Community Engagement: Investors can become brand advocates, helping to spread the word about the company.
• Market Validation: Gaining investment from the crowd can validate a business idea.

Related Terms and Concepts

Crowdfunding, venture capital, startup funding, angel investor