5 perks of raising capital through equity crowdfunding

By Vanessa Malone

Last week we talked about the rise of equity crowdfunding. This week we wanted to share some of the benefits of including this form of capital raising in your company’s early-stage growth strategy.

1. Access to capital

Equity crowdfunding provides an innovative option for companies to cast a wide net into a larger pool of potential investors. The average person aged 18 or over, with a few restrictions, can make an equity investment in your company online with just a few clicks. Instead of a couple investors giving large amounts of capital, you can enable the crowd to give small amounts that add up to your capital raising goals.

2. Creating strategic brand ambassadors

Further, your ability to attract fans who support your story and believe in you enough to invest helps to demonstrate that the market approves of your concept, which can help attract venture capital or create momentum for future funding rounds.

3. Increasing brand awareness

This process helps to truly refine your messaging, vision, and even products. Why? Because if your business model and story isn’t easily understandable or convincing, it will have a direct impact on the success of your equity crowdfunding campaign. Creating a pool of fans and customers, existing and new, will enable you to gain invaluable feedback as you grow and scale.

4. Capital raising on your own terms

This method can also allow you raise capital without giving up a large percentage of your company or decision making abilities.

5. The infrastructure is here and maturing quickly

Equity crowdfunding is part of the exempt securities market, which has surpassed registered securities offerings when it comes to new capital raised in 2019. We expect this trend to continue.

In conclusion

If your company is seeking to conduct a securities offering, Horizon offers a one-stop-shop from primary issuance, KYC/AML investor onboarding, custody, all the way through to secondary trading. Visit us at https://www.horizonfintex.com/ or email us at horizon@horizonfintex.com for a demo.

About Horizon:

Horizon licenses and operates global securities exchanges.

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