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Why is equity crowdfunding a good way to raise investment?

Equity crowdfunding allows ambitious, early-stage and other growth-focused businesses to raise capital from a large and diverse group of passionate investors in exchange for a portion of equity.

Previously, this type of investing was only readily accessible to venture capitalists and angel investors with plenty of time and resources at their disposal. Many businesses would struggle to generate the initial few rounds of funding needed to build the momentum required for true growth.

By democratising investment on platforms like Seedrs using an efficient, online process, everyone now has the opportunity to invest in early-stage and growth-focused businesses they believe in. Entrepreneurs not only raise capital but also generate support for their businesses, with many investors being willing and able to lend support and mentorship in the same way as angel investors, and becoming brand ambassadors and valuable customers.

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