Finance is one of the biggest hurdles, an entrepreneur has to face while setting up the foundation of his start-up. Some of them are able to bridge the financial gap through bank loans, some through connections to investors, but still a majority of them are in a fix for accumulating finance for their new set-up.
To their rescue comes the concept of crowdfunding; to be more precise equity crowdfunding. The question here in your mind might be what is equity crowdfunding? What do sites like Kickstarter and Myefunder do in this context? But before that, let us first understand what is equity?
What is Equity?
Equity has different meanings in finance and accounting, but here we would answer the question what is equity with common reference to both. Finance equity is the difference between the asset value and liabilities of the organization and in accounting it refers to shareholder’s equity when the financial equity is divided amongst the shareholders.
Equity Crowdfunding
After clearing the air about what is equity, let’s focus on the question what is equity crowdfunding? Well, it is an alternative way of funding start-ups and small businesses, in which broad groups or individual investors interested in the idea or prospects of the start-ups can inject funds in it , in exchange of ownership of shares of the company. As the business bears fruit with time, the investors are in direct profit with shares of the company in their hand.
The Crowdfunding Platforms
The questions of what is equity and what is equity crowdfunding have already been answered; now moving on to the third question what is equity crowdfunding platform all about? Indeed, equity crowdfunding helps a budding business grow, but the probability that the entrepreneur would dream of contacts of people interested to fund their idea, is almost negligible (until the entrepreneur is of the race of super humans). To this situation crowdfunding sites like Myefunder.com come to the rescue. These platforms are the link between the entrepreneur and investor. Crowdfunding websites provide opportunities for both the parties to grow and flourish. It is not only the initial funding which can take place on the crowdfunding platforms of Kickstarter and Myefunder.com , but also the investment required for subsequent growth of the company i.e. follow-on investment.
In the crowd of increasing start-ups it is quite difficult to reach that unique idea for establishing a successful business, but if analysed deeply a proper source of funding is indeed a crucial issue for the start-up. This article, surely must have given answers to inquisitive minds about the questions “What is equity?” “What is equity crowdfunding?” and “What do equity crowdfunding platforms like Myefunder do?”
An interested entrepreneur in need of funds for his start-up can go to the depths of this process of investment by directly visiting the webpage of the crowdfunding sites and further by contacting agents of crowdfunding platforms like Myefunder.com.
