{"id":704,"date":"2025-01-30T10:02:00","date_gmt":"2025-01-30T10:02:00","guid":{"rendered":"https:\/\/www.experlu.co.uk\/dictionary\/?p=704"},"modified":"2025-03-25T09:54:59","modified_gmt":"2025-03-25T09:54:59","slug":"equity-crowdfunding","status":"publish","type":"post","link":"https:\/\/www.experlu.co.uk\/dictionary\/equity-crowdfunding\/","title":{"rendered":"Equity Crowdfunding"},"content":{"rendered":"\n<p>Equity crowdfunding is a way to raise funds for start-ups or new companies.&nbsp;Investors get shares in the company in exchange for their contributions. The percentage varies in each company, but it can be good &nbsp;option to raise capital rapidly.<\/p>\n\n\n\n<p><strong>Equity crowdfunding is also called investment crowdfunding or crowd-investing.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of Equity Crowdfunding for businesses<\/h2>\n\n\n\n<p>The main benefits include:<\/p>\n\n\n\n<p>\u25cf easier access to capital<br>\u25cf <strong><a href=\"https:\/\/www.experlu.co.uk\/dictionary\/management-accounting\/\">management<\/a><\/strong> is less stressful<br>\u25cf exposure to social media and PR<br>\u25cf feedback on your idea<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Risks in Equity crowdfunding<\/h2>\n\n\n\n<p>Main risks include:<\/p>\n\n\n\n<p>\u25cf Higher failure probability<br>\u25cf Lack of liquidity<br>\u25cf Dilution of equity<br>\u25cf Possibility of fraud<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Process of Equity Crowdfunding?<\/h2>\n\n\n\n<p>Below is the process of equity crowdfunding:<\/p>\n\n\n\n<p>\u25cf  A company approaches a crowdfunding platform<br>\u25cf  Platform approves business<br>\u25cf  Crowdfunds to the company<br>\u25cf  The platform deducts their fees and transfers funds to the business<br>\u25cf  Crowd gets a proportionate share in the company<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equity crowdfunding is a way to raise funds for start-ups or new companies.&nbsp;Investors get shares in the company in exchange for their contributions. The percentage varies in each company, but it can be good &nbsp;option to raise capital rapidly. Equity crowdfunding is also called investment crowdfunding or crowd-investing. Benefits of Equity Crowdfunding for businesses The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[74],"class_list":["post-704","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-equity-crowdfunding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is equity crowdfunding?<\/title>\n<meta name=\"description\" content=\"Equity Crowdfunding lets investors fund startups in exchange for shares. Raise capital, grow your business, and attract backers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.experlu.co.uk\/dictionary\/equity-crowdfunding\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is equity crowdfunding?\" \/>\n<meta property=\"og:description\" content=\"Equity Crowdfunding lets investors fund startups in exchange for shares. Raise capital, grow your business, and attract backers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.experlu.co.uk\/dictionary\/equity-crowdfunding\/\" \/>\n<meta property=\"og:site_name\" content=\"Experlu Dictionary\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-30T10:02:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-25T09:54:59+00:00\" \/>\n<meta name=\"author\" content=\"Experlu Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Experlu Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/equity-crowdfunding\/\",\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/equity-crowdfunding\/\",\"name\":\"What is equity crowdfunding?\",\"isPartOf\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#website\"},\"datePublished\":\"2025-01-30T10:02:00+00:00\",\"dateModified\":\"2025-03-25T09:54:59+00:00\",\"author\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65\"},\"description\":\"Equity Crowdfunding lets investors fund startups in exchange for shares. 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