Equity Crowdfunding becomes key to success for individuals and SMEs

Mar
14

Equity Crowdfunding becomes key to success for individuals and SMEs

Most of the people believe that a good company can always find financing to grow and expand. Business
startups or small and medium enterprises (SME’s) need to put extra efforts to get startup funding. Small
venture owners still presume that banks are the first stop for business financing. Even though, banks declining
loans to small businesses has grown over the last few years. Although, startups or SMEs are still getting funds
through venture capital firms the chances of them getting through are generally even lesser than their kid going
to a Silicon Valley school.
 
However, the good news is that a series of recent laws and regulations have opened the door for business
startups through Equity Crowdfunding. This new way of startup investment allows individual business
investors to take equity stake in a new startup or SME company. Small businesses can now raise funds
using crowdfunding platforms. Startups agree to sell stock in their business and can offer those as shares to
anyone. However, there is an income criterion for investors who can invest in crowdfunding startups. These
crowdfunding platforms do online transactions all over the world these days. Microinvestors can invest from any
part of the country into startup companies they are interested in.
 
This form of investment exists in many countries and especially attracts business startups which may have a
great history and engaged customers but to whom banks are not interested to lend money. Typically venture
capital firms and angel investors are not interested to invest in minority and women businesses too.
However, Equity Crowdfunding behaves in exactly the opposite way. Top university researchers say that
there are a huge number of women microinvestors who are interested to invest in small and women
entrepreneur businesses through crowdfunding.  
 
And this is becoming possible through social media which is highly used by women these days to source for
funding. This linkage of technology and social media creates awareness among them and provides knowledge
of investment avenues and any disruptions in financing laws. ANGLEPaisa is one of the topmost equity
crowdfunding website
in India which allows microinvestors to invest in diversified portfolios and get equity in
return as decided by the business startup. It also encourages women entrepreneurs and helps them run their
ventures successfully.

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