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Equity Crowdfunding

Equity crowdfunding refers to angel investors or venture capital investors that pool funds toward a common investment and the investors can be either individual or institutional. The use of equity crowdfunding allows for smaller minimum investments to be committed by each investor, providing for greater diversification opportunities among investors’ holdings in startup companies.

Equity crowdfunding can be done through a variety of online platforms. There are equity based platforms (like Florida Funders), listing services, and lastly registered broker-dealers.

in Basic Terminology