Equity-based Crowdfunding

Equity-based crowdfunding, also known as crowdinvesting, involves the matching of companies seeking capital with investors seeking investment opportunities. Equity CF platforms facilitate part or all of the transaction online.

Since Equity CF is a type of securities-based crowdfunding, it is a regulated activity. In general, a country’s financial services regulator or capital markets authority will be the main oversight body for Equity CF platforms.

Well-known ECF platforms in Europe include Crowdcube, Wiseed, SmartAngels and Seedrs. In Africa, LelapaFund, Emerging Crowd and Afrikwity are some well known ECF platforms. Since there are no ECF regulations in place in any African countries, all these platforms operate under European jurisdictions where ECF regulations are in place.