For companies that need to raise capital, there are a lot of options they can choose from, but there is no question that raising money is hard. It doesn't happen with the snap of a finger.
Lucky for entrepreneurs, there is now another door that entrepreneurs can open to access capital: equity crowdfunding. In essence, equity crowdfunding is raising capital from the crowd through the sale of securities (shares, convertible note, debt, revenue share, and more) in a private company (that is not listed on stock exchanges).
Equity Crowdfunding Is Raising Capital From The Crowd Online.
Anyone can invest in your offering under equity crowdfunding. You can think of it as similar in function to a Kickstarter or Indiegogo campaign, in which potential investors visit a funding portal website and can explore different equity crowdfunding investment opportunities. There are certain restrictions, in that you have to be over 18 and there are limits on how much capital an individual can invest based on their income and net worth. Continue reading from Forbes