What is Equity Crowdfunding (“ECF”)?

ECF is a method of raising capital that is facilitated through licensed and regulated ECF operators through their online platforms. These platforms connect entities, known as “issuers,” seeking capital with potential investors. Issuers can present their investment opportunities by hosting campaigns on these platforms, allowing investors to browse and select campaigns in which to invest.

Investors who contribute relatively amounts of money in a campaign will be issued and allotted equity shares in the respective issuer, thereby obtaining a portion of ownership in the issuer. If the issuer's business performs well, investors may expect returns in the form of dividends, the sale of shares to new investors, or the issuer becoming eligible to list on the stock exchange.

Last Update: 22 July 2024