Well, before jumping into the main topic, let us explore what equity crowdfunding means and how it will be a blessing in disguise for startups. Simply put, it is a mechanism through which investors can fund startups or small businesses in return for equities. Today, gaining capital is no more a problem for startups because, through equity crowdfunding, companies can gain capital with much ease. In fact, startups can grow their businesses and flourish with this type of crowdfunding campaign in no time. Not to mention that they also have a whole lot of benefits such as:
- Provides access to capital easily without any need to depend on banks
- Minimizes overall risk as most of the investors invest at lower levels
- Brings extra value along with money for your startup through feedback, comments, and ideas
- Aids in building a network of investors for the future
- Helps in attracting media attention in less time
- Assists in gaining venture credibility when approaching angel investors via proof of concept
