In equity crowdfunding, what do people invest in a company in exchange for?

In equity crowdfunding, individuals invest in a company in exchange for shares. When someone participates in equity crowdfunding, they are essentially buying ownership stakes in the company. This means that as investors, they gain a claim to a portion of the company's future profits and potential growth, depending on the number of shares they hold.

Equity crowdfunding is specifically designed to provide startups and small businesses with access to capital by allowing them to raise funds from many small investors, rather than seeking out a few large investors or financing through loans. The shares that investors receive can appreciate in value if the company grows and becomes successful, allowing investors the possibility for significant returns on their investment in the long term.

Unlike other options such as cash bonuses, assets, or debt securities, which do not convey ownership interests in the same way, shares directly represent a stake in the company's equity. This ownership means investors are more closely tied to the company's performance, as their investment's value will rise or fall with the company's fortunes.