What is Equity Crowdfunding? Definition or Meaning

Equity crowdfunding is a form of funding model where you can offer investors a share in your company, invest the money from selling the shares and reward the investors when your venture makes profits.

For example…

Let’s say you wanted to help your friend expand her killer chilli sauce production company internationally. To help her out, you decide to buy shares in her company that your friend will in turn use to maximise production, distribution and yumminess in that sauce. This is Equity Crowdfunding as you will get a return on your investment when your friend’s chilli sauce takes international markets by storm.