Equity Crowdfunding

Equity Crowdfunding is a capital-raising method where startups or early-stage companies raise funds from a large number of individual investors through online platforms, offering equity shares in return.

Unlike traditional crowdfunding (which typically involves product pre-orders or rewards), equity crowdfunding allows contributors to become partial owners, participating in potential future profits or exits.

Equity crowdfunding is regulated in most jurisdictions and serves as a valuable financing channel for companies that may be too early-stage or risky for institutional venture capital.