Equity crowdfunding is a new but rapidly growing investment marketplace in the startup-financing ecosystem. Equity crowdfunding allows individuals to invest money in exchange for an equity stake in private, early stage companies such as high tech startups. With the rise of tech superstars such as Facebook, Waze, and Evernote, startup investing has become particularly attractive to investors as they seek to get in on the ground floor of the next billion-dollar startup.
Equity crowdfunding platforms such as A+CROWD thus present a unique opportunity for everyone to become investors in their own right. Although startup investing is risky, A+CROWD seeks to mitigate this risk with a rigorous prescreening process of leading technology experts and investors and allowing investors to commit smaller amounts to a greater number of startups across various sectors. This enables investors to diversify their portfolios and better manage their risk exposure.
Likewise, startups also benefit from equity crowdfunding platforms because it affords them immediate and much easier access to a wider swath of potential investors. Instead of spending an average of nine months on a globe-trotting investor roadshow, entrepreneurs can now use equity crowdfunding platforms such as A+CROWD to provide a faster, fairer, and more transparent way to raise the capital they need. With the wisdom of crowds supporting them, startups can also gain greater exposure to more insights and ideas. We believe that ultimately, this allows entrepreneurs to focus on doing what they do best – building the next big company.