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Equity Crowdfunding

/ˈɛkwɪti ˈkraʊdfʌndɪŋ/noun
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Equity crowdfunding is a modern financing technique that allows startups and small businesses to raise capital by selling shares to a broad audience through online platforms, effectively democratizing investment beyond traditional venture capitalists. This method empowers everyday investors to own a piece of emerging companies, but it often involves navigating regulatory hurdles and higher risks due to the lack of liquidity in early-stage ventures.

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Since the JOBS Act was passed in 2012, equity crowdfunding has fueled over 1,000 successful startups in the U.S., with one standout example being the platform SeedInvest, which has backed companies that collectively raised more than $1 billion and includes firms like Jumio that later achieved unicorn status.

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