Equity crowdfunding

Equity crowdfunding is a way to raise money for an idea or business from a lot of people. Instead of just borrowing money from one person or institution (like a bank), equity crowdfunding allows anyone to become an investor and to provide money for the business. In return, the investors get a small piece of the business or what is known as "equity." The more money someone invests, the bigger piece of the business they get. People who invest in equity crowdfunding often get returns if the business becomes successful.