What Is Equity Crowdfunding?
Equity Crowdfunding is when people across the country and the world (the "crowd") invest money in a company in exchange for shares or interest in that company.
And it’s NOT Kickstarter!
Unlike rewards-based crowdfunding found on platforms such as Kickstarter and Indiegogo, Equity Crowdfunding gives investors the opportunity to make a profit. When someone buys into your campaign, they’ll have an interest in a small part (which you define) – giving them a share in your success and therefore more incentive to invest. All the while, you maintain complete control of your company.
How Does Equity Crowdfunding Work?
Start with your idea for a new business, or an existing one that needs financial backing.
Put your campaign on approved websites for investors, who get to share in your success – giving them incentive to buy in.
Use the money you raise to start or expand your company, generating revenue!
Equity Crowdfunding Stats
$270,996
Average total raised
$833
Average Investment
64%
Success rate
270,000+
Registered investors
Equity Crowdfunding (officially called “Regulation Crowdfunding,” or Reg CF for short) can be used to finance a brand new company or to fund continuing work of an existing business. You can raise any amount, from $10,000 to over $1 million per year. Unlike Kickstarter or Indiegogo, Reg CF campaigns do not focus on donations from friends and family, but on the hundreds of thousands of interested investors already on approved platforms. Because of this, the average Reg CF campaign is almost twice as likely to be successful, and raises more than ten times the average Kickstarter campaign.
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Equity Crowdfunding Has the Highest Success Rate
Venture Capital
Kickstarter
Equity Crowdfunding
Average Amount Raised Comparison:
Kickstarter
vs
Equity Crowdfunding
Equity Crowdfunding went into effect in the United States in 2016 with the implementation of the JOBS Act, a bipartisan law that opened up new opportunities for businesses to raise capital. Smart businesspeople using Equity Crowdfunding are at an advantage over rewards-based Kickstarter-style fundraising because they are much more likely to reach their minimum goal. But since the law was passed so recently, there are no comprehensive resources and tools for entrepreneurs who want to reach their maximum goal… until now!
Start your campaign now and get your share of investor dollars!
Equity Crowdfunding raised $31.5 million in 2016 $71.2 million in 2017 $109.2 million in 2018 $121.3 million in 2019 $138 million so far in 2020!
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