2,357 crowdsourcing and crowdfunding sites
While most of the buzz associated with equity-based crowdfunding has focused on private offerings, several companies have begun to look into crowdfunding public offerings. IPO Village is backed by the investment banking firm First Line Capital, and it will host IPOs of companies in the firm’s portfolio. The first IPO is expected in the fall, and the site has opened up registration for all potential investors to “reserve [a] place in line.”
One of the main differences between a traditional IPO and a crowdfunded one is that the former is underwritten by an investment bank, which sells the shares to an accredited investor or institution. Thus, the shares go through several intermediaries before retail investors are able to purchase them, pushing up prices. Some potential investors may prefer public company shares to private ones because the former are more liquid and come with a clearer exit strategy.