Euro 5-min

Equity crowdfunding: an opportunity for company development

Crowdfunding is the process by which a number of people contribute money, even small sums, to finance a business project or initiatives of various kinds using websites (“platforms” or “portals”) and sometimes receiving a reward in return. There are different types of crowdfunding. Among the most common are Reward Crowdfunding (which provides the investor with a reward commensurate with the contribution made) and Equity Crowdfunding.

Crowdfunding is defined as “equity-based” when, through the on-line investment, a real shareholding in a company is acquired: in this case, in exchange for the financing, a set of financial and administrative rights deriving from the shareholding in the company is received. Equity crowdfunding is therefore an important financing tool for small and medium-sized enterprises, generally used to support the launch of new business initiatives.

Share on facebook
Share on twitter
Share on linkedin
Share on google
Share on whatsapp
Share on email
Share on print

NEWSLETTER

Follow us and subscribe our newsletter