The Rise of Equity Crowdfunding For Startups

01.24.22 09:11 AM By Aria

Equity Crowdfunding is a modern way for businesses to finance a project or venture by raising a certain amount of money from different groups of people, typically via the Internet. It allows businesses to raise capital by providing equity to investors. This way, new investors can pool funds with the company's investment in hopes that they will receive a good Return On Investment (ROI.)   

 

The most significant advantage of crowdfunding for a startup company is its ability to provide access to a more extensive and diverse group of investors. However, in most jurisdictions, restrictions apply to who can fund a new business and how much they can contribute.   

  

Raising money for a business via crowdfunding isn't that easy. Like any fundraising campaign, it requires an effective marketing strategy and solid execution. Those seeking funds use social media and crowdfunding platforms to reach out to people interested in investing in the said venture. 

 

Businesses nowadays prefer to launch crowdfunding campaigns over donations to provide capital and fuel the industry. Equity-based crowdfunding is growing in popularity because it allows startup companies to raise money without controlling venture capital investors. 

 

It also allows investors to use vast networks through different platforms and bring connections to entrepreneurs, potentially increasing entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.  

 

T4L Crowdfunding Campaign  

 

T4L is one of the few vehicle subscription companies on the market today offering a world-class car subscription service. As a subscribing member, you can experience all the benefits and perks other car enthusiasts do not have access to. Your subscription also includes car insurance, maintenance, roadside assistance, and so much more. 

 

The company has also launched its second round of equity crowdfunding campaign via StartEngine. The primary purpose of T4L is to engage a wide range of strategic and influential partnerships, especially those with Electric Vehicle enthusiasts.