$3 Billion: In 2017, this was the amount invested in equity by accredited American investors who supported developing businesses in exchange for stock.
Isatis Capital advises start-up businesses or those with high-growth potential in the sources of equity crowdfunding financing.
During the process, Isatis assures the required documentation preparation and the necessary regulatory disclosures to organize and formalize funding in alternative markets. Isatis also inquires about registration on a crowdfunding portal.
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Equity Crowdfunding is a mechanism of funding that allows a broad group of accredited investors to finance the start-up, the development and growth of companies in exchange for equity.
Equity crowdfunding comprises several advantages. It is an excellent way to solicit interest in a company and to increase equity without the burden of « going public ». Certain crowdfunding campaigns can be likened to a small IPO. Moreover, issuers are able to defend a better valuation that allows controlling the dilution of founders and investors in the start-up phase while expanding the shareholding in preparation for a public listing.
Crowdfunding activities are regulated by the Financial Conduct Authority in the United Kingdom and by the Title ll JOBS Act in the United States.
Alternative financing instruments include cryptocurrencies such as Bitcoin, SME mini-bonds, private placements and other « parallel banking » mechanisms.
The New Investment Source
Crowdfunding, an innovative model of the traditional banker, private placement approach, should reach $36 billion by 2020 and surpass venture capital as a principal source of start-up and growth financing.