The two other types of crowdfunding are the donation and reward models.
As the name suggests, the donation model allows people to donate funds without any returns. The reward model is when a company accepts funds in exchange for a prepaid item, product or service.
With equity crowdfunding, individuals can give funds to companies in exchange for a piece of ownership (equity/shares). Equity crowdfunding allows both companies (issuers) and supporters to benefit by giving issuers greater access to capital and supporters the possibility of getting tangible returns from the funds that they contribute.
Learn about our 'why' here.
Learn more about equity crowdfunding here.