[VIDEO] Equity Crowdfunding: What Is It?

You may have heard this term ‘equity crowdfunding’ tossed around in the media, or perhaps you’ve seen Indiegogo mention it in an email or social media post. But what does equity crowdfunding actually mean?

Also referred to as crowd investing or investment crowdfunding, equity crowdfunding under Title III of the JOBS Act (aka Regulation Crowdfunding or Reg CF) is barely over a year old. Since we launched First Democracy VC, our registered equity crowdfunding platform in partnership with MicroVentures, in November 2016, we’ve already launched 20+ company offerings in a variety of categories and raised almost $6M. From software companies to films, gaming to distilleries and beyond, 100% of the deals we have launched have hit at least their minimum funding goal. Many of our deals have hit their maximum funding goals as well!

We’re very excited about the early success we’ve seen in such a short amount of time. However, since equity crowdfunding is such a new space, education and content are lacking, leaving both potential investors and potential companies looking to fundraise hesitant to join this growing industry. To help educate people on this new type of fundraising option, we created a short, informative, animated video to better explain what equity crowdfunding really is, as well as how it differs from the perks/rewards-based crowdfunding that you know and love from Indiegogo.



As a potential investor, here are the basics you need to know:

  • Anyone 18 and older can now invest in startups, not just the wealthy.
  • Investing is as simple as browsing, learning about the offerings and making a few clicks.
  • Unlike perks/rewards-based crowdfunding, with equity crowdfunding you’re actually making investments into companies and can participate in any potential upside of that company.

As an entrepreneur looking to potentially use this as a way to fundraise, here are the basics you need to know:

  • This isn’t only an option for tech startups.
  • It’s a great way to truly engage your community of fans, customers and users, and involve them in any potential upside of your company.
  • You can use it to augment a current raise and carve out a piece of your fundraising round for the “crowd,” where they can invest right alongside your more traditional institutional investors and/or angel investors.
  • It’s not only about the money.  It’s a great way to get global exposure for your company/brand.


Ready? Explore investment opportunities on First Democracy VC today!