The Pros and Cons of Equity Crowdfunding for a Business Startup
There are major benefits entrepreneurs can experience by utilizing the equity crowdfunding method to raise capital. However, just like any alternative fundraising option, it also has its drawbacks. One of the first major benefits of this capital raising method is that it enables entrepreneurs that cannot obtain financing elsewhere to fund their business startup. Another major benefit is that it does not require entrepreneurs to give up a large amount of equity in their company, allowing them to retain significant ownership.3 People who want to invest in a company via equity crowdfunding campaigns can also benefit in that they do not have to be highly sophisticated investors to invest.