The evolution of crowdfunding as a new investment vehicle for Investors And VC’s in form of equity crowdfunding has been remarkable in the past few years.Unlike other forms of crowdfunding, equity crowdfunding is different because securities are bought and sold: entrepreneur gets investors’ cash in exchange for equity in the company.
Equity crowdfunding is giving opportunity to a larger number of investors to become the evangelists, beta testers, and devoted users of the products/services they crowdfunded. Sometimes this could be more valuable than the experience that angel and venture capital bring to the start-up.
Investors are moving towards vertically based equity crowdfunding portals.As verticals like real estate, bio tech & consumer goods are gaining traction effective through various equity crowdfunding portals. These equity portals provide investors opportunities in one vertical, with qualified teams capable of building trust and expertise in the deals they eventually to list on equity crowdfunding platforms.
In 2015, we expect to see more equity crowdfunding portals launching in other verticals like oil & gas, Marine industries,automotive industries, Restauration etc. So with this increase in vertical integration embedded in equity crowdfunding, we at FUNDRAISINGSCRIPT had invented new frontier which will allow users/investers/startups to launch their own equity crowdfunding site/portal embedded with any type of verticals which will prove to be thrilling and trend that can be banked on.
Equity portals increasingly expand globally by finding broker dealers in multiple countries of their interest, and having them service their particular brand.
As crowdfunding platforms become increasingly turn-key and the information provided becomes better, it will become easier and easier to tap a broad array of accredited investors for start-up capital.
As a result, equity crowdfunding will become seamlessly and cost-efficiently global in nature, allowing it to grow as in the industry mainstream as a standard.