BizSugar.com › Raising Capital › Equity Crowdfunding Startups: The Pros & Cons

Rather than ‘thank-you’s’ or perks for crowdfunding campaigns, equity crowdfunding consists of actually buying a percentage of a company in exchange for funding. This allows everyday people access to investments in startups, which has traditionally only been available to accredited investors and investment firms. Because of the risks associated with these investments, many countries are working on regulations to protect investors, most of which are expected to be approved within the next year.