Equity Crowdfunding

Equity crowdfunding, or equity funding, is a method for small and medium-sized enterprises (SMEs) and startups to raise money by selling shares or ownership stakes to a large group of investors.

This type of crowdfunding allows businesses to obtain funding from a large number of small investors rather than from a small group of wealthy investors as in traditional forms of financing.

In Italy, equity crowdfunding is regulated by Consob, the Italian financial market supervisory authority, which has approved specific regulations to create a reliable and trustworthy environment for investors.

Equity crowdfunding platforms must be authorized and monitored by Consob to ensure they are in compliance with equity crowdfunding regulations.

Equity crowdfunding platforms offer investors the opportunity to invest small amounts in innovative companies and startups, allowing them to directly participate in the strategic choices of the companies they finance.

Investors can choose the campaigns they want and invest the amount they want, register, verify their investor profile and make a simple bank transfer from their home banking.

There are two main types of equity crowdfunding platforms: accredited and non-accredited. Accredited platforms are only available to investors who meet certain criteria, such as having a net worth of $1 million or an annual income of $200,000.

Before investing in an equity crowdfunding campaign, it is important to do your research and understand the risks involved, such as the possibility of the company not raising enough money or not meeting investors’ expectations.