Geri Stengel

 
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6 Common Misconceptions About Equity Crowdfunding

Only a tiny percentage of wealthy people—less than 3%—who qualify to become angel investors actually do so. When people decide to claim their accreditation wings, angels are the most likely investors to focus on early-stage companies.

In 2014, angels invested $24.1 billion in 73,400 U.S.-based ventures, according to the Center for Venture Research. There is now a new way to reach angels that centralizes, streamlines and brings transparency to the financing process for both entrepreneurs and investors: equity crowdfunding. This is done using platforms like AngelList, CircleUp, Crowdfunder and Portfolia. Yet, only $787.5 million was raised via equity-based crowdfunding in 2014, according to Massolution’s 2015CF Crowdfunding Industry Report. What gives?

Read all of  6 Common Misconceptions About Equity Crowdfunding on QuickBooks.com.