Browse Definitions :
Definition

equity crowdfunding

Equity crowdfunding is a variation on the crowdsource model that allows the general public to purchase shares in an existing business or a startup.

Crowdfunding involves funding a project with relatively modest contributions from a large group of individuals, rather than seeking substantial sums from a small number of investors, as has traditionally been the case for businesses funded with venture capital (VC) or other private equity. Equity-based campaigns are typically used to launch a startup or to provide funds for a new business venture for an established company.

The model is empowering for both businesses and investors because it enables the development of projects that might otherwise be hard to fund, and allows individuals to invest in ideas they believe in without incurring unmanageable risk.

Crowdfunding was made possible through the JOBS (Jumpstart Our Business Startups) Act of 2012. Title IV of the Act, passed by the SEC (Securities and Exchange Commission) in 2015, made it legal for people other than accredited investors to purchase equity. Accredited investors are required to have either a net worth of $1 million or an annual individual income of $200,000.

SyndicateRoom explains equity crowdfunding:

This was last updated in April 2016

Continue Reading About equity crowdfunding

SearchCompliance

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close