Is Equity Crowdfunding Becoming a Global Phenomenon?

— Other — 2 minutes read

Equity crowdfunding is emerging as one of the most disruptive financing solutions. Nations all over the world are increasingly acknowledging its potential and enforcing regulations to give it more room to grow. Let’s look at the reasons equity crowdfunding is turning into a global phenomenon.

The world is consumed by entrepreneurship

  • Entrepreneurship and crowdfunding are two sides of the same coin. If one goes away, the other disappears as well. This explains why more and more entrepreneurs are flocking to equity crowdfunding to jump-start their ventures.

Enabled by technology

  • Widespread Internet access, coupled with the growing use of smartphones, gives equity crowdfunding an extra pair of wings. Even in the remotest parts of the world, equity crowdfunding is accessible.

Opening up to the masses

  • In many countries, equity crowdfunding is available not only to accredited investors, but also to beginning investors. This provides new opportunities for growth to people from all walks of life, all over the planet.

Potential high returns

  • People with some sense of investing and business acumen use equity crowdfunding as a way to reach a higher asset class. They are experienced in investing and rely on equity crowdfunding to spread risk evenly by diversifying their portfolios.

Organised

  • The equity-crowdfunding industry is becoming increasingly organised, but also more dependable and trustworthy. Platforms are taking up more responsibilities and providing better services and investment opportunities. They perform due diligence, vet companies and support them from pitch to exit.

Regularised

  • Governments across the world are taking up more efforts to accredit crowdfunding platforms, to ensure investors can take full advantage of their investment choices. This leads to many positive and profitable initiatives, like the tax shelter for startups.

Niche crowdfunding

  • Equity crowdfunding in niche markets, like real estate and impact investing, has injected positive sentiment in investor communities. This is encouraging more and more investors to take their chances with high-risk, high-reward investment opportunities.

Driving growth and innovation

  • Equity crowdfunding is often the only way to raise capital for innovative concepts and products which otherwise would never receive a grant from banks. Startups are creating more jobs and business opportunities, giving new impetus to countries with slowed or crippled economic growth. 

You are part of change

  • Last but not the least, when you invest via equity crowdfunding, you’re not only getting potential returns, but also serving a purpose through your business that goes beyond a profitable bottom line. This brings with it even more benefits like a sense of fulfillment, happiness and meaning.

Seeking happiness, fulfillment and meaning? Try a round of equity crowdfunding on MyMicroInvest.