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The Equity Crowdfunding Process, Explained [Infographic]
© Image: GrowthFunders.com
editorial

The Equity Crowdfunding Process, Explained [Infographic]

Equity crowdfunding is coming to the U.S. – though nobody is sure of when exactly it will happen (see related stories for some estimates). While there are innovative initiatives taking place that mimic the crowdfunding process, the sale of equity to the unaccredited masses is still months away.

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This is no good news for startups, funding portals, or investors looking to get involved in the alternative financing method. The only thing left for prospective investors to do, really, while waiting for the SEC to issue rules around equity crowdfunding is to continue educating themselves about the financing process and the risks that come with it.

Recently, U.K.-based platform GrowthFunders put out one of the more informative infographics about the equity crowdfunding process. Though crowdfunding platforms across the pond operate under different laws than what we can expect here in the U.S., the core process is the same. So are the benefits that crowdfunding can bring to unaccredited investors as well as businesses.

The infographic below does a great job of walking potential investors and entrepreneurs through the crowdfunding process, as well as outlining the role that funding portals have in facilitating the investor-issuer relationship. It first appeared on the GrowthFunders blog, and the platform promises to put out more of them in the coming weeks – stay tuned.

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