Indiegogo introduces Equity Crowdfunding through their portal

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Six months after the Title III gets the legal status in the United States, Indiegogo, one of the most famous global crowdfunding platforms has opened her gates to Equity Crowdfunding. Indiegogo has partnered with MicroVentures for the purpose.

Starting 15th of November this year, Indiegogo is inviting her strong backer’s community to participate into Equity Crowdfunding through her.

Before Title III, only accredited investors were allowed to invest into equity crowdfunding. However, Title III has given people from every walk, an opportunity to become a stockholder of some of the future unicorns.

The step taken by Indiegogo will definitely entice the retail investors from their comfort couches and take a plunge into Equity Crowdfunding. That means more and more opportunities for the mom and pop stores to become significant and successful.

At present, the website is displaying four campaigns on her equity crowdfunding page. However, we hope that soon there will be many more options for the investor’s community.

David Mandelbrot, Indiegogo’s chief executive, said, “In a lot of ways, this levels the playing field,” he further added, “This was one of the few areas of the law where citizens were treated differently based on the amount of wealth that they have.”

There are many companies, who launched themselves through the reward-based crowdfunding. However, they finally have to submit themselves to venture capitalists when they are seeking bigger money for the expansion and growth.

Now with equity crowdfunding coming into the mainstream, where every layperson has a legitimate opportunity to take a chance at equity crowdfunding, many of the companies will indeed choose to continue being with the Crowd rather than getting diluted in the hands of a handful.

There is no denying that many organizations die before seeing their 5th birthday. Which means, investing into such small scale businesses that have very little to prove their credibility is a high-risk decision. Nonetheless, there is a possibility of an enormous success coming its way too. Equity Crowdfunding indeed is a business that can be termed as ‘high-risk high-reward.’

Investors must vet all the documents and disclosures provided by the companies; and, also do some background check before they think of picking up on investing in the stocks of an organization.

Besides, it is best to gamble (read: invest) only that kind of money which an investor can afford to keep locked for a longer time. The reason behind this is that unfortunately investment done through equity crowdfunding has no such established exit ways.

Investors might require waiting for long before they get to reap some monetary benefits out of the investment made. However, if you hit the right deal, Equity Crowdfunding has the potential to earn you a fortune for the lifetime.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

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