Equity-based crowdfunding enables a large group of individual investors to come together and fund (provide capital) to a business in return for pieces of that business (equity).

On most platforms, companies are vetted before being posted for investment and different platforms usually have different requirements for companies looking to raise.

Under equity-based crowdfunding, anyone can invest in a startup, however, there are restrictions, e.g. individuals have to be over 18 and there are limits on how much capital an individual can invest based on their income and net worth.

As investors who participate in equity-based crowdfunding will receive greater returns if the company they invest in grows, they have a vested interest in seeing the company succeed, meaning they are likely to spread the word and act as brand ambassadors in addition to providing capital.  

Equity-based crowdfunding platforms include Crowdcube, Seedrs, SeedInvest, DreamFunded, Companisto, Invesdor, SeedMatch, WeFunder and Funderbeam.  

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