Equity Crowdfunding Platforms Not All Crowdfunding Sites Can Be Used for Raising Capital
Equity Crowdfunding Platforms: Equity-based crowdfunding allows people to invest in an early-stage, private company (a company that is not listed on any stock exchange) in exchange for equity (shares, or a percentage of ownership) in that company, though with restrictions. The so-called Title III allows issuers to raise funds online from ordinary people for investment purposes, not just accredited investors (the rich).
The Venture Founders Directory of Equity Crowdfunding Platforms is growing and I’d be pleased to hear if I have not listed a platform you know about. Equally i’m open to other suggestions for improving the Directory.
Crowdfunding is no easy route to equity raising. You should really learn about the process and the regulations, before trying to jump in. Wefunder has a place on its site where you can ask questions. Many other platforms have very helpful guidance, Crowdfunder has a good guide to equity crowdfunding. I would still suggest that you do your own research. Take a look at the Securities and Exchange Commission compliance guide on what is technically called ‘regulation crowdfunding’. The guide is for the platforms, but it will help you understand the process, despite the legalese.
An interesting development is that 30 States (as of January 2018) have adopted crowdfunding provisions in their rules or statutes recognizing that equity crowdfunding, done responsibly, with appropriate disclosure and safeguards, is another valuable tool that small companies can use to raise capital. This level is generally referred to as Intrastate Equity Crowdfunding). Eight more States have legislation pending or under disccussion. Take a look at this Crowdfunded Insider article, and you can see examples listed below.
- 1000angels: platform invites companies to raise capital following a rigorous vetting process;
- angellist: one of the oldest and most established equity crowdfunding platforms;
- circleup: for small consumer product and retail company fundraising;
- crowdcube: raising funding from your own network of friends, family, customers and strangers;
- crowdfunder: connects entrepreneurs and nonprofits with investors;
- crowdfunding NJ: an intrastate equity crowdfunding platform;
- earlyshares: investment in private companies, real estate projects, and investment funds;
- equifund: specializing in startups and early stage companies (also have a platform for growth stage firms);
- equitynet: has operated their business crowdfunding platform since 2005;
- flashfunders: equity crowdfunding platform enabling anyone to own a piece of a company for as little as $50;
- floridafunders: an intrastate equity crowdfunding platform;
- fundable: business crowdfunding platform dedicated exclusively to helping companies raise capital;
- fundersclub: for accredited investors with low investment minimums ($3k);
- gridshare: brings together renewable energy projects, clean technology companies, investors and donors;
- growthfountain: among other things this platform partners with a number of local credit unions;
- gust: funding platform for the sourcing and management of early-stage investments;
- indiegogo equity: the equity part of the platform in partnership with microventures (see below);
- localstake: does what its name implies—enables you to raise equity locally;
- michiganfunders: an intrastatel equity crowdfunding platform;
- microventures: a platform for both accredited and non-accredited investors access to invest in startups;
- nextseed: a Texas-based intrastate equity crowdfunding platform;
- offerboard: the platform enables energy companies to find funding from accredited investors;
- republic: a special focus on the underserved — women, minorities, immigrant and veteran founders;
- seedinvest: equity crowdfunding platform opens up access to venture capital and angel investing to everyone;
- seedups: connecting investors with technology startups in UK and USA;
- startengine: do small and large online public offerings and also initial coin offerings;
- startupvalley: tech startup funding;
- trucrowd: a Chicago-based platform;
- wefunder: provides the opportunity to invest as little as $100 in startups: they are a Public Benefit Corporation.