Crowdfunding equity is a kind of investment which sees no boundaries and no limits. Crowdfunding equity can be practised by all budding entrepreneurs. It also allows all kinds of investors to try their fortune by getting involved in the process of crowdfunding equity. Crowdfunding equity is a kind of crowdfunding in which the investors get shares of the start-up in return to the investment.
Another kind of crowdfunding goes by the name of rewards crowdfunding in which the investors get a product or gift in return to the investment. A major difference comes from the fact that in crowdfunding equity the investor feels himself attached to the project for a long time, may be a life time.
Before recent times crowdfunding equity used to be the privilege of a special class of investors called the accredited investors but now there is a shift in the rules as well as mentality. The shift implies that now anyone can invest for  equity but within a certain limit.
This provides the general masses an opportunity to equip themselves with a better future, provided they choose wisely. Her we are mainly focussing on the term equity crowdfunding. We are well aware with the concept, crowdfunding equity can offer a shiny future to the investors but one should always be aware of the risks involved with them. Apparently, risks exist everywhere.
Can crowdfunding equity be a golden goose?
The scenario in the US about crowd funding equity has unfolded in interesting ways. It has not only invoked zeal of innovation amongst people for raising their start-ups but has also helped the people in and around the start-up to raise their status. The opportunities and possibilities contained with this are numerous. With a strong way of financial back-up which a crowdfunding equity can be, a potential innovator could develop a technology to solve the major crisis of recent times i.e. saving the environment.
He can come out with a cheaper and stable solution to harvest the renewable resources of energy, edging towards a pollution free mother earth. The investors binding to this idea along with their financial back-ups are sure shot going to have a hit future when this technology shoots off as they would get the shares of the company when investing under crowd funding equity.
The combination works even better.
The concepts of crowdfunding rewards and crowdfunding equity are more than one difference apart. There are start-ups which have mediocre innovative ideas. For such start-ups it is profitable for investors to combine the two crowdfunding types i.e. going with a rewards crowdfunding mixed with some crowdfunding equity. It neutralises the added risks with the start-up i.e. even if it fails the investors get the products and gifts which elevates their way of living.
Crowdfunding, although helps changing the present word scenario, but also comes with added risks. However, one can determine its complete set of fruitfulness of the crowdfunding equity only when they are known to the rules and regulations of the country.
