Equity crowdfunding has changed the game for entrepreneurs looking to get their concepts off the ground. Digital equity crowdfunding platforms connect startups with both accredited and non-accredited investors to streamline the early fundraising process.
These platforms connect entrepreneurs with investors they might not have found on their own. They also give investors access to exciting new businesses on a smaller scale than a traditional venture capital firm.
There are many different equity crowdfunding portals to choose from online. If you’re new to equity crowdfunding, it can be tricky to know where to start. We’ve reviewed the top 12 equity crowdfunding sites to help you find the right option for your business. Of course, to raise money you must adhere to the relevant regulations in your country, such as the SEC regulations in the US. The US, EU, UK and many other countries now allow startups to raise capital from the general public on licensed equity crowdfunding platforms such as the platforms mentioned here. Nothing in this article is intended as legal or financial advice, and you must consult your legal and financial advisors regarding your capital raise or any investment.
Wefunder claims to be the largest equity crowdfunding platform on the market. As of late 2021, startups on Wefunder have raised USD $399 million, and many startups have gone on to generate even bigger returns after their Wefunder campaigns. Wefunder has a very high success rate of approximately 75%.
This platform supports startups in a wide variety of sectors, including tech, healthcare, sports & entertainment, food & beverage, and many others. There are also different investment structures to choose from – most startups on Wefunder use Reg. CF, but Reg. A+ and Reg. D are available as well.
Since their launch in 2012, many of their startups have gone on to become very successful. Some of their most fascinating success stories include the art installation company Meow Wolf, beer and coffee company Modern Times, biotech company Gingko Bioworks, and HR software platform Zenefits. They have also worked with popular startup accelerator Y Combinator to provide even more opportunities for crowdfunders.
Wefunder is not a curated platform, which means that virtually any startup can use it. They currently support startups based in the United States, and will soon start accepting European startups as well. Wefunder provides mentorship opportunities and other tools to help startups throughout their campaign. They help investors handle any relevant legal documents and connect them with investors who have experience in their industry. When launching on Wefunder, you will need to create a detailed startup profile that includes a business plan, detailed financial information, team bios, notes from lead investors, and more.
As a startup on Wefunder, you can set your own minimum buy-in from investors. This minimum investment could be as low as $100, but many startups opt to set it higher. You can also use Wefunder to target larger investments from accredited investors and international investors.
Wefunder only charges fees to startups if their crowdfunding campaign is successful. These fees cover associated brokerage costs. For Reg CF campaigns, Wefunder charges a 7.5% flat fee of your total fundraising amount. For Reg A+ campaigns, Wefunder charges a flat fee of $375k. If your campaign is not successful, Wefunder does not charge any fees. The platform also makes a large portion of their money by charging its investors a flat 3.5% service fee.
Overall, Wefunder is a great option for startups who are looking to get off the ground, whether you’re new to the equity crowdfunding game or are already familiar with it. Right now, Wefunder has the largest market share of any equity crowdfunding platform online, and it’s easy to see why. This platform is very accessible, with low investment minimums and clear, detailed profiles for each startup.
Founded in 2011, StartEngine is one of the oldest and most established equity crowdfunding platforms online. Since their founding, StartEngine claims they have funded over 500 offerings with more than $500 million raised.
StartEngine currently only accepts startups from the United States. They also have a curated portfolio, which means that not every startup that applies will be accepted. StartEngine accepts startups in a wide variety of industries. Right now, the platform features several different technology startups as well as startups in food and beverage, real estate, sustainability, and much more.
StartEngine has a wide network of accredited and non-accredited investors. The minimum investment in a StartEngine campaign is $250, but startups have the option to set higher minimums if they prefer. When assembling your campaign, you will need to create both videos and written content pitching your startup’s business model. You will also need to provide detailed financial information and information about your team. One thing that is unique to StartEngine is that you can designate perks for investors who reach certain financial thresholds.
Entrepreneurs on StartEngine only pay if their campaigns are successful. For Reg. CF campaigns, StartEngine charges 7% of total capital raised as well as 2% in equity and $10k in deferred revenue. StartEngine does not charge any fees on the investor side, which helps them attract great investors from around the world. Right now, they have over 600,000 active users.
Every campaign on StartEngine receives a dedicated account manager and campaign strategist. The platform also helps with SEC filings and other legal documents. Larger businesses with over $3 million in annual recurring revenue can apply for a Series A fundraiser. With this plan, StartEngine provides additional marketing support and pairs you with a registered broker-dealer to fundraise.
StartEngine is unique in that they also give investors the opportunity to trade shares in startups via StartEngine Secondary. The concept of this is similar to the stock market – investors buy and sell shares of your startup, and they also have the option to convert shares to cash. These shares come with a 5% sell fee.
In addition to their equity crowdfunding platform, StartEngine also has a collectible investment program. These collectible investments are structured under Reg. A+ and currently have a $500 minimum investment. Some of the collectibles currently available include luxury art, rare trading cards, and fine wine.
StartEngine is a unique crowdfunding platform with a huge user base. They provide a high level of support for their startups to connect you with enthusiastic investors.
Republic is an equity crowdfunding platform that focuses on unique opportunities for non-accredited investors. This platform was founded in 2016 and is part of the AngelList family. The Republic platform supports a variety of non-traditional investments that the average individual investor wouldn’t necessarily have access to.
Startups in a variety of different sectors can fundraise on Republic, including fintech, real estate, crypto, food, education, and more. Many successful brands have campaigns on Republic. Notable startups that have Republic campaigns include Guac, a financial savings app, and Sugarfina, an artisan candy brand.
Right now, Republic only accepts startups from the United States. However, they do allow international investors. There are some fees required for entrepreneurs fundraising on Republic. They take a 6% cut of all fees raised in cash as well as 2% in equity. Startups must be US-based and pass a screening. Republic accepts less than 5% of startups that apply to provide a curated selection for their investors.
Republic currently has over 1 million members and boasts an 89% success rate. In addition to their huge community of non-accredited investors, they also connect startups with notable venture capitalists and have an active alumni community for networking. Their team provides legal and onboarding support and will help you create a detailed and effective pitch. Their investment platform is intuitive for both the entrepreneur and the investor, which streamlines the process for both parties. Republic also has a program specifically for accredited investors who want to make large-scale private deals.
On top of their startup investing platform, Republic has a market for a variety of other non-traditional assets. These include curated real estate portfolios, crypto investments, and video games. They have used this to attract a huge range of investors that might not otherwise have found your crowdfunding campaign. Overall, Republic is a sleek equity crowdfunding platform that’s great for startups who already have some experience.
Seedrs is another UK-based platform that supports investors and entrepreneurs throughout Europe. This platform is available to non-accredited investors throughout the UK and EU, and accredited investors from other countries are also welcome to invest. Seedrs’ startups can set their minimum investments as low as £10.
Seedrs accepts startups in many different industries, but has a particularly good selection of sustainable businesses. There are also startups in hot sectors like CBD, crypto, and fintech on this platform. You can opt to run a campaign directly on Seedrs, but they also feature companies on the secondary marketplace.
Startups on Seedrs pay 6% of the total funds raised as well as a £2,500 completion fee and a small payment processing fee. Seedrs also provides many supporting features for their startups. These include educational tools and resources through their academy, as well as equity services to help with taxes and legal requirements when getting a company off the ground.
Over the years, Seedrs has facilitated over £1.8 in investments. This is a curated crowdfunding platform, which means that they accept only the most promising startups that apply.
5. Angel Investment Network
The Angel Investment Network connects entrepreneurs and startups with angel investors from all over the world. Unlike many of the other platforms we’ve mentioned, entrepreneurs do not have to be based in the United States to start a campaign on Angel Investment Network.
This platform only accepts accredited investors, so it is an excellent choice for startups looking to raise larger sums of money. Minimum investment amounts on this platform vary, but many start at $10,000 or more. However, there are some smaller-scale investments on this platform as well.
Angel Investment Network does not curate their campaigns. This means that any entrepreneur or startup company can post a crowdfunding campaign here. They accept ventures in a wide variety of industries. This platform also offers a messaging feature where investors can connect with entrepreneurs before getting involved. This is a great way to build relationships with prospective investors and determine if you are a good fit.
Because the Angel Investment Network isn’t curated, it is suitable for a wide range of project types. If you haven’t been accepted to a curated equity crowdfunding platform, the Angel Investment Network may be a better fit. There are fees involved for most entrepreneur listings on this site. Complete newbies can start with a free 30-day listing, but to gain access to most features of the site, you will need to sign up for a paid membership.
There are three tiers of membership: Pro, Global Pro, and Executive. The Pro membership is $199/quarter, the Global Pro membership is $299/quarter, and the Executive membership is $1,999/quarter.
Crowdcube is one of the leading equity crowdfunding platforms in the United Kingdom. Founded in 2010, they were one of the first equity crowdfunding sites to launch and now boast over 1.2 million members. They feature campaigns for growing businesses in many different industries. While this platform focuses mainly on UK investors, startups from all over Europe can list here.
This platform supports growing startups at many different funding stages, ranging from seed funding all the way up to growth funding. Crowdcube offers an excellent selection of tools and resources to new entrepreneurs to help them get off the ground. This includes tax support, marketing support, analytics, and more.
Crowdcube charges entrepreneurs a completion fee ranging from 0.75-1.25% at the end of a funding round, as well as a 5.5% success fee if that funding round is successful. Crowdcube’s knowledge hub provides even more helpful educational content to increase your chances of a successful funding round. Startups on Crowdcube can set investment minimums as low as 10 pounds.
Crowdcube provides both marketing and legal support for their startups. Their team not only provides support during funding, but can also help with investor relations after funding is complete.
Crowdcube also runs Cubex, which allows investors to buy and sell shares in private businesses throughout Europe. This is a way for investors to buy into exciting new companies that aren’t yet on the stock market. The Cubex feature helps Crowdcube grow their investor community so startups can reach an even wider range of potential investors.
EquityNet gives startups of all stages and sectors a place where they can add a listing to expose their offering to accredited investors. They allow virtually any startup to let investors know of the investment opportunity they offer, including startups raising substantial sums of money. Investors declare their accredited status to register on the platform, and do not need to pay. They do charge the startups on their platform, however they do not take any commissions, and instead take flat fees.
EquityNet supports the startups on their platform with data analysis, marketing services, consulting on the startups investor deck and listing, and more. They offer a free plan to give startups an easy starting point on their platform. All is all it seems like a cost effective way to give your startup’s capital raise exposure.
Microventures is a curated equity crowdfunding platform. They focus on both early and late stage investments, and entrepreneurs can set minimum investments as low as $100 for some campaigns. There are also some campaigns designed specifically for accredited investors which have much higher buy-ins.
This company also has a secondary trading market, which allows investors to trade startup shares with each other. This secondary platform can make your startup very attractive to investors, as it gives them some liquidity when buying in.
Since its inception, Microventures members have invested over $220 million in crowdfunding campaigns. They have featured some very high-profile startups, including Slack, Airbnb, Uber, and many others. As they have worked with these high-profile startups, they have built up a network of trusted investors. In addition to Reg. CF campaigns, they also run Reg. D and Reg. A campaign.
One thing to be aware of with Microventures is that they don’t provide much information about fee structures up front. You’ll need to get in touch with their team directly to learn more about fees and requirements for entrepreneurs or for investors.
Raise Capital on Microventures
SeedInvest combines the strict vetting process of a traditional venture capital firm with the convenience of equity crowdfunding. They are based in New York City and have an acceptance rate of less than 2%, so they are best for startups that already have a very defined vision and business plan. They accept startups across many different sectors, including e-commerce, technology, hospitality, and more.
SeedInvest accepts both accredited and non-accredited investors, with the option for international investing as well. The minimum investment per project starts at $500. Entrepreneurs on SeedInvest can choose from Reg. CF, Reg. A, or Reg. D campaigns. Like many other equity crowdfunding platforms, SeedInvest charges fees only if your project is successful. They have a 7.5% placement fee as well as a 5% equity fee. Once your campaign has launched, they will reimburse up to $3,000 in accounting fees for you.
Fundify is a newer equity crowdfunding platform that launched in 2019. They focus on both startups and early stage companies across a wide variety of industries. Some of their equity crowdfunding projects have minimum investments of just $10 to target non-accredited investors.
Fundify also provides a unique and tech-driven experience for startups. They have connections with angel investor groups and startup incubators that come with a wide variety of opportunities. They also run the Fundify Industry Expert Network of accredited investors with specific industry experience. Fundify pairs each startup with a member of this network that has experience in their industry. This expert serves as a mentor and can provide guidance throughout the fundraising campaign.
On top of that, Fundify partners with many other companies to offer deals to their startups. These include deals on helpful CRM systems, video production, compliance tools, and more. Fundify does charge fees for successful startup campaigns on their platform. This includes a 6% cash fee and a 1.5% equity fee.
Netcapital is an American equity crowdfunding platform that allows users to invest in shares of private companies. They have a robust secondary market, which allows startup investors to trade their shares the way you would on a traditional stock market. This attracts investors who might be interested in your startup, but want to trade with more liquidity.
Minimum investments for Netcapital start at $99. They accept both accredited and non-accredited investors. While they don’t accept international startups, they do accept international investors. While there are startups in many industries on Netcapital, they have a focus on tech and healthcare industries.
Netcapital currently charges a flat fee for entrepreneurs of 4.9%. Netcapital also provides a wide range of tools and resources for entrepreneurs, including pitch templates, legal paperwork, consulting, and more. They also continue to manage investor relations after closing.
SeedBlink is one of the leading equity crowdfunding platforms in Romania. They are based in Romania but accept startups and investors from the entire European Union. They have connections with some of the largest venture capital groups and angel investors in Europe. They provide networking connections and resources to startups to help them grow beyond their fundraising campaigns.
SeedBlink features a curated portfolio, so they only accept the EU’s most promising startup campaigns. This means that entrepreneurs will need to go through a strict screening process before being accepted to SeedBlink. While there are startups from many different industries on SeedBlink, they have a unique focus on innovation and technology.
While SeedBlink accepts non-accredited investors, they do have a higher minimum investment amount of EUR 2,500, so they also attract accredited investors. They have both public and private rooms where investors can communicate with entrepreneurs. This gives you an opportunity to talk with potential investors and build a relationship before making a deal. SeedBlink also provides exit support and management services.
On the entrepreneur side, SeedBlink charges a success fee of 7% if you meet your fundraising goal, plus Europe’s VAT. They also provide legal support for an additional fee of EUR 3,000. The platform also offers marketing support to help you build the most effective campaign possible.
More about the best equity crowdfunding platforms worldwide:
To learn more about the world’s best equity crowdfunding platforms, check out CrowdFunding.Guide. Here you’ll find detailed information about crowdfunding platforms worldwide. This site also has exclusive offers and discounts on various platforms and services for startup founders, to help you raise capital and connect with investors.
Equity crowdfunding platforms provide startups with the resources and connections they need to get their company off the ground. They also make startups more accessible to the average investor. In the past, getting startup funding required connections to a small and exclusive group of venture capitalists, but these platforms level the playing field.