Equity crowdfunding lets early stage companies raise investments from a ‘crowd’ of investors. In turn, investors get shares in startups that are not yet listed on the stock market. If the company does well, investors earn profits.
This is great because it gives small innovative companies easier access to capital. They get the funds they need and have more freedom to pursue their vision.
Even though they lose out on some of the expertise that traditional investors can offer, platforms provide tons of resources and have partnerships that benefit the startups that they work with.
Read the article here:
http://www.crowdcrux.com/what-is-equity-crowdfunding/
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