equity-crowdfunding

Vocabulary Word

Definition

In equity crowdfunding, companies raise money from the public by selling them shares or bits of the company. It's like a kickstarter, but instead of a product, they give ownership.

Examples in Different Contexts

In entrepreneurship, 'equity crowdfunding' allows startups to raise capital by selling small amounts of equity to many investors online. An entrepreneur might describe, 'Equity crowdfunding is a revolutionary way for us to secure funding while engaging our community.'

Practice Scenarios

Creative

Scenario:

Hosting an exhibition is pricey. We might need to get creative with our funding options.

Response:

I’ve seen some artists start equity crowdfunding campaigns. It could be a great way to fund the exhibition while growing our fan base.

Tech

Scenario:

Developing the new app is critical, yet we have budget constraints. We need to think about alternative financing methods.

Response:

I suggest exploring an equity crowdfunding campaign. Our user community might appreciate the opportunity to invest in our growth.