Equity crowdfunding

Crowdfunding Equity-based crowdfundingequity fundingequity-crowdfundedequity-crowdfunding
Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets.wikipedia
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Seedrs

Early platforms include CrowdCube and Seedrs in the UK. Others like the European startup Exorot.com invest their own money in every new startup on top of investment received from others on their website.
Seedrs is an equity crowdfunding platform for investing in startups and later-stage businesses throughout Europe.

Crowdfunding

crowdfundedcrowd fundingcrowdfund
Because equity crowdfunding involves investment into a commercial enterprise, it is often subject to securities and financial regulation.
2) Equity crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged.

Eureeca

The approved platforms include Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+.
Eureeca is an equity crowdfunding platform with offices in Dubai, London, Amsterdam and Kuala Lumpur that allows early-stage businesses and small and medium-sized enterprises (SMEs) to raise capital from a group of investors in exchange for equity.

Symbid

In April 2011, Symbid was founded in the Netherlands by Robin Slakhorst and Korstiaan Zandvliet as one of the world's first investment crowdfunding platforms.
Headquartered in Rotterdam, Netherlands, Symbid was founded in April 2011 by Dutch entrepreneurs Robin Slakhorst and Korstiaan Zandvliet as one of the first equity crowdfunding platforms worldwide.

FundedByMe

The Sweden-based FundedByMe also launched their Equity Crowdfunding portal in Finland in January 2013.
In September 2012, the company launched FundedByMe Equity, an equity crowdfunding portal in addition to its donation crowdfunding portal.

SeedInvest

Popular platforms for accredited crowdfunding include Wefunder, AngelList, EquityNet, CircleUp, SeedInvest and FundersClub.
SeedInvest is an equity crowdfunding platform that connects startups with investors online.

StartEngine

In 2016, StartEngine and SeedInvest were the first to offer opportunities under Regulation A+ of the JOBS Act, which allows both accredited and non-accredited investor to invest in private companies.
StartEngine is an equity crowdfunding platform that connects startups with investors online.

SyndicateRoom

SyndicateRoom another online UK-based equity crowdfunding was also co-funded by Portuguese Gonçalo de Vasconcelo.
SyndicateRoom initially launched itself as a crowdfunding platform for high-net-worth and sophisticated investors, inventing and operating through the investor-led model of equity crowdfunding.

Invesdor

An Equity Crowdfunding portal was launched in Finland in May 2012 by Invesdor.
Invesdor focuses on equity crowdfunding for startups and growth companies.

Jumpstart Our Business Startups Act

JOBS ActJumpstart Our Business Startups Act (JOBS Act)JOBS Act of 2012
The first known equity based crowdfunding platform for startups was launched as a private beta in June, 2009 by Grow VC Group followed by full commercial launch in February 2010 The first US. based company ProFounder launched model for startups to raise investments directly on the site in May 2011, but deciding later to shut down its business due regulatory reasons preventing them from continuing, having launched their model prior to JOBS Act.
On October 30, 2015, the SEC adopted final rules allowing Title III equity crowdfunding.

PledgeMe

PledgeMe and Snowball Effect were the first two platforms to receive licences
PledgeMe is a Wellington, New Zealand-based crowdfunding platform which offers project and equity crowdfunding.

List of highest-funded equity crowdfunding projects

List of highest funded equity crowdfunding projects
This is a list of the highest-funded equity crowdfunding projects.

Angel investor

angel investorsangel investmentbusiness angel
Angel investor
A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies.

Alternative finance

alternative forms of financealternatives
Alternative Finance
Examples of alternative financing activities through 'online marketplaces' are reward-based crowdfunding, equity crowdfunding, revenue-based financing, online lenders, peer-to-peer consumer and business lending, and invoice trading third party payment platforms.

Comparison of crowdfunding services

All or Nothingcrowdfunding platformsbusiness model for crowdfunding
Even before the law came into effect, many crowdfunding services launched to fill this role.
1) Equity-based crowdfunding

Invivo Wines

In March 2015, Invivo Wines became the first New Zealand company to raise $2 million, the maximum amount allowed under New Zealand regulations.
In March 2015, Invivo became the first New Zealand company to raise NZD$2 million via equity crowdfunding, the maximum amount allowed under New Zealand regulations.

Crowdfunding exemption movement

create an intrastate exemption for crowdfunding
Thanks in part to the Crowdfunding exemption movement, the JOBS Act was signed into law by President Obama on April 5, 2012.
The first big push towards an equity crowdfunding exemption came in April 2010, when Paul Spinrad of Make magazine, Jenny Kassan of the Sustainable Economies Law Center (SELC), and Danae Ringelmann of Indiegogo launched the Crowdfunding Campaign to Change Crowdfunding Law to fund the legal work to draft a petition to the U.S. Securities and Exchange Commission for a crowdfunding exemption.

Seed money

seed fundingseed roundseed capital
Seed money
Investors can also be outside angel investors, venture capitalists, accredited investors, equity crowdfunding investors or government programs.

Capital market

capital marketssecurities marketssecurities market
Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets.

Crowdcube

Early platforms include CrowdCube and Seedrs in the UK. Others like the European startup Exorot.com invest their own money in every new startup on top of investment received from others on their website.

Peer-to-peer lending

peer to peer lendingpeer-to-peerperson-to-person lending
Also known as Peer to peer lending or Peer to business lending.

No income, no asset

income documentationno income no job no asset
Borrowers must demonstrate creditworthiness and the capability to repay the debt, making it unsuitable for NINA or startups.

Ontario Securities Commission

trading of securities in Ontario
Investment crowdfunding can breach various securities laws, because soliciting investments from the general public is often illegal, unless the opportunity has been filed with an appropriate securities regulatory authority, such as the Securities and Exchange Commission in the U.S., the Ontario Securities Commission in Ontario, Canada, the Autorité des marchés financiers in France and Quebec, Canada, or the Financial Conduct Authority in the U.K. These regulators have different ways of determining what is and what is not a security but a general rule one can rely on (at least in the U.S.) is the Howey Test.

Autorité des marchés financiers

Investment crowdfunding can breach various securities laws, because soliciting investments from the general public is often illegal, unless the opportunity has been filed with an appropriate securities regulatory authority, such as the Securities and Exchange Commission in the U.S., the Ontario Securities Commission in Ontario, Canada, the Autorité des marchés financiers in France and Quebec, Canada, or the Financial Conduct Authority in the U.K. These regulators have different ways of determining what is and what is not a security but a general rule one can rely on (at least in the U.S.) is the Howey Test.

Financial Conduct Authority

FCAFinancial Conduct Authority (FCA)banking regulators
Investment crowdfunding can breach various securities laws, because soliciting investments from the general public is often illegal, unless the opportunity has been filed with an appropriate securities regulatory authority, such as the Securities and Exchange Commission in the U.S., the Ontario Securities Commission in Ontario, Canada, the Autorité des marchés financiers in France and Quebec, Canada, or the Financial Conduct Authority in the U.K. These regulators have different ways of determining what is and what is not a security but a general rule one can rely on (at least in the U.S.) is the Howey Test.