One of the biggest challenges that prospective entrepreneurs face is generating enough money to get their business off the ground. While bringing on investors has always been an option, another financial backing opportunity know as crowdfunding was technically against the law for small businesses. Crowdfunding is a subsidizing method whereby a large group of individuals combines financial resources with relatively small amounts of money, to help raise capital for a new business venture.
Equity crowdfunding is a process that involves soliciting small investments from a very large number of people at the same time. An equity crowdfunding platform can be utilized online to reach potential investors from around the world. Although using an equity crowdfunding platform in the United States is not yet legal, it is legal and successful in other countries such as the U.K. and China.