What is equity crowdfunding?

• Cash flow challenge: I need to raise growth funding, but I want to do it by reaching a wide pool of investors rather than relying on banks or a single private investor.

• Perfect for: Startups and growth businesses looking to raise capital from multiple small investors through online platforms.

Novuna helps businesses explore equity finance routes like crowdfunding, supporting you in comparing providers and securing the right deal to fund your growth.

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What is equity crowdfunding?

Equity crowdfunding allows businesses to raise money by selling small amounts of equity to a large number of investors through an online platform.

Unlike reward-based crowdfunding, where backers receive products or perks, equity crowdfunding gives investors a stake in your business. They benefit if your company grows or exits.

Benefits of equity crowdfunding

• Access to many investors - you can raise significant sums by pooling contributions.

• Build brand advocates - investors often become loyal customers and promoters.

• Market validation - a successful campaign signals confidence in your business.

• Flexible raise sizes - from small amounts to millions, depending on platform and appetite.

Challenges to consider

• Loss of equity - you’ll dilute ownership across many shareholders.

• Time and preparation - successful campaigns require strong marketing and planning.

• Ongoing communication - you’ll need to update and manage a large investor base.

• Public failure risk - if a campaign doesn’t raise enough, it may impact reputation.

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When to consider equity crowdfunding

Equity crowdfunding could be right for your business if you:

• Have a consumer-facing product with wide appeal

• Want to combine fundraising with brand-building

• Are comfortable with many small shareholders

• Need flexibility in the size of funding raised

Alternatives to equity crowdfunding

Other funding routes you might consider include:

• Angel investment

• Venture capital for larger, later stage funding

• Business loans for more traditional finance

How Novuna Business Cash Flow helps

Novuna supports businesses in accessing equity finance, from crowdfunding platforms to angel and venture capital. We’ll help you understand your options, compare providers, and secure the funding that aligns with your growth plans.