Equity crowdfunding has become an increasingly popular choice among startup businesses.
The idea is that entrepreneurs have the ability to raise capital from a crowd of people in exchange for a future stake in the company. Basically, it’s real life Shark Tank.
If you’re in the startup stages of your company, equity crowdfunding could be a great option for you — just be sure to be aware of the pros and cons and legal rules that come along with it.
In this article, we’re taking you though the top 5 equity crowdfunding platforms so that you can have a better understanding of where you might want to launch your campaign.
WeFunder
WeFunder is leading the charge in the equity crowdfunding space, with the platform responsible for over one-third of all money raised through equity crowdfunding.
WeFunder has funded almost 1,500 startups with over $280 million invested. It also boasts the largest average investment of any major platforms, with most people writing a digital check for over $100.
WeFunder is hailed as a great launching point for many equity crowdfunding adventurers, with over $2 billion in funds raised by company’s after their campaigns come to a close on the platform. It’s the perfect way to build social proof and get the ball rolling to attract larger investors!
StartEngine
StartEngine is typically considered to be WeFunder’s largest competitor, accounting for about 30% of all Reg CF dollars raised during the fiscal year 2020.
With Mr. Wonderful Kevin O’Leary serving as the face of the company, more than 400,000 prospective investors are a part of the StartEngine community — which means lots of people that could be willing to contribute to your project.
To date, StartEngine has funded more than 500 companies with $300 million invested, benefitting off a few major campaigns that raised huge totals.
StartEngine itself is also publicly traded at $13 per share. Its overall valuation is currently set at $220 million.
Republic.co
Republic isn’t quite as popular as its WeFunder and StartEngine competition, but it’s still a major player — especially for major categories such as:
- Real estate
- Video Games
- Crypto
There are also plenty of more traditional startups that use Republic to raise funds, as well. In total, the platform is responsible for 20% of all dollars raised in the equity crowdfunding space.
Republic’s thriving investor community boasts over 800,000 members, which contributed to raising about $150 million in 2020 alone.
Republic also had the most active investors of any of the three major players, with almost 40% of their community putting money towards a campaign in 2020.
MicroVentures
MicroVentures provides private market investment opportunities to their investor community of 190,000.
They’re calling card is their thorough vetting process, which can make it a little bit more difficult for less-established startups to get their foot in the door.
While the platform hasn’t yet captured as much of the equity crowdfunding market as the three competitors listed above, its still transacted $400M+ and offered more than 900 investment opportunities to date.
Its portfolio contains names you’ve heard like AirBnB, Robinhood, Uber, Lyft, and Slack. Especially if your company has already garnered some significant momentum, MicroVentures could be the platform for you.
EquityNet
EquityNet was the first business crowdfunding platform ever launched back in 2005. Since then, the platform has raised more than $500M for 1,000+ companies.
If MicroVentures calling card is highly vetted startups, EquityNet is the antithesis. The platform doesn’t have a prescreening process, allowing your business to be listed quickly.
This lack of prescreening has some obvious drawbacks — including that some businesses are unqualified. But that’s a problem for investors — not for you, the entrepreneur.
Their community also boasts more than 25,000 accredited investors including individuals, VCs, and angel groups.
Conclusions
If you’re looking to launch an equity crowdfunding campaign, start by researching the five platforms listed above. These reputable sites could be the big break for your startup!
Wanna learn more about equity crowdfunding and all the opportunities it provides?
We’ve got you covered with a totally comprehensive book, Equity Crowdfunding Explained.
You should also check out the CrowdCrux Youtube Channel and Podcast, where our founder Salvador Briggman is always giving out the best tips and talking with the most successful entrepreneurs from all sectors of the crowdfunding industry.
Ready to launch your own campaign?
Book a coaching call with Sal today!
We hope that this article was helpful for you. Use CrowdCrux as your trusted resource, if you need us!
