If you are in need of credit for your business but you do not want to take a loan, equity crowdfunding is a great opportunity for you. You can obtain credit from investors in return for equity in your business. Some investors will require that you offer stocks or part ownership of the business. The whole idea of equity crowdfunding is that unlike a loan, you are not required to repay the money, instead, you compensate. Analysts have predicted that the global crowdfunding market will grow at a CAGR of 26.87% between 2016 and 2020. Here are 10 popular equity crowdfunding websites you should know.
AngelList was established in 2010. It is one of the oldest equity crowdfunding platforms. Initially, the platform would connect technology entrepreneurs with high net worth funders who would later benefit from selling their stock in the startups. Startups being funded through AngelList must maintain active profiles before, during as well as after a crowdfunding campaign.
Fundable platform offers reward-based and equity crowdfunding. The platform helps with onsite profile building, business plan development, and pitch construction. There is no minimum amount that a company is required to raise but you cannot invest less than $1000.
CirleUp is an equity crowdfunding platform that connects investors with startups in the food and beverage, fitness and technology sectors. CircleUp provides investors with pertinent information relating to a company that is seeking to crowdfund. Such information includes leadership, retail partners, business model, and revenue.
Crowdfunder is inclined to innovative consumer products and consumables. Nevertheless, the platform does not expressly restrict funding for other projects. Crowdfunder offers a platform where investors can make non-binding pledges but make the actual contribution off-site.
Wefunder focuses on startups in the insurance, biotech, green energy, and logistics among others. Unlike many other crowdfunding websites that require you to invest at least $1000, Wefunder allows you to invest as little as $100.
With Localstake, a company seeking to crowdfund may offer equity or revenue share loans. The platform is biased towards small businesses that are predominantly consumer oriented. Examples include food production, brewing and apparel manufacturer.
EquityNet is one of the oldest crowdfunding sites, having been founded in 2005. Its focus is on social enterprises and consumer products. The platform provides a detailed profile of a company that is seeking funds. This enables the investors to make informed decisions.
PeerRealty crowdfunding focuses on real estate development. Projects funded include commercial and multi-family residential developments. The platform also offers an opportunity for funding of multi-property portfolios.
EarlyShares is also a platform that offers an opportunity for real estate developers to get funding from investors. Since high-value assets such as discrete properties and multi-asset funds are involved, there is usually a minimum amount that you can invest. This amount ranges from $5,000 to $25,000. Pledges are made on EarlyShare while actual cash transfer is done off-site.
SeedInvest is a fairly selective site that only allows accredited investors. Most of these investors are angel investors or venture capitalists interested in investing in technology startups. With SeedInvest, you can invest in a company directly through the platform
