Equity Crowdfunding: A New Model for Financing Start-Ups and Small Businesses
Crowdfunding, the practice of funding a project or venture by raising small amounts of money from a large number of people, has expanded over the past few years as a potential new funding source for start-ups and small businesses. In light of the recent legislative changes related to equity crowdfunding in both the United States (US) and Canada, this report will discuss major types of crowdfunding and their growth before focusing on equity crowdfunding as a method of financing for small businesses and start-ups. It will cover the current global market and both countries’ new legislation, as well the specific challenges and benefits of equity crowdfunding. Lastly, the report will also touch on what the new trends in crowdfunding could mean for impact investing with a spotlight on the millennial generation’s investing patterns.
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