Equity crowdfunding is a method of raising capital where a company sells a portion of its shares to a large number of individuals, typically through an online platform. Instead of traditional crowdfunding where contributors receive a product or a service in return for their support, equity crowdfunding allows backers to become part-owners of the company. See also Regulation CF.
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Alert - SEC Amends Rules to Promote Capital Raising (Reg A, Reg Crowdfunding, Rule 504)
Read about the SEC's amended rules to promote capital raising.