Equity Crowdfunding allows you (i.e. the 'crowd') to invest in an early-stage unlisted company in exchange for shares in that company, giving you partial ownership of this company.
Previously, only wealthy individuals and companies could invest in startups. However, similarly to general crowdfunding popularized by platforms such as Kickstarter, ECF has democratised the investment process, allowing more people - the crowd - play a role in helping companies grow.
For startups, ECF also opens the doors to a larger pool of potential investors, meaning more interested people can be a part of the company's growth, allowing the raising of higher amounts of capital.
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