Equity Crowdfunding
Equity Crowdfunding allows businesses to raise capital from a large number of investors who each contribute a small amount of money in exchange for equity.
Benefits
Equity crowdfunding gives businesses a way to raise money without debt. It also helps them find supporters and customers among the investors.
Frequently Asked Questions
How does crowdfunding help raise capital?
Crowdfunding helps businesses get money by letting many people invest. Each person gives a small amount.
Do you give up equity in crowdfunding?
Yes, in equity crowdfunding, you give investors a share of your company. They own a part of it.
Do investors make money from crowdfunding?
Investors can make money if the business does well. They own a part of the company, so they benefit when it grows.
Key Takeaway
Equity crowdfunding is a way for businesses to get funding by sharing ownership with many investors. It`s useful for startups and small companies looking to grow.