Crowdfunding is the use of small amounts of capital from many individuals to finance a new business venture. It is a method of raising money used by startups and early-stage companies. Using social media and online investing platforms, the pool of investors is expanded beyond the traditional circle of owners, relatives, and venture capitalists.  

Unlike traditional capital-raising methods for early-stage companies – which primarily rely on investments from a small group of professional investors – equity crowdfunding targets a broader group of investors, not only accredited ones but also day-to-day investors.