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Equity crowdfunding is a type of equity financing whereby people (‘the crowd’) invest in an early-stage unlisted company, in exchange for shares (equity) in that company. Is your business ready to take on investors?
Equity crowdfunding is a type of equity finance whereby people (‘the crowd’) invest in an early-stage unlisted company, in exchange for shares (equity) in that company. Individual investors thus become shareholders and stand to profit if the business does well – they might also lose some or all of their investment. Equity crowdfunding usually takes place over an online platform.
You have to bring at least 20% of the money to the table before you can raise on a crowdfunding platform
You get charged on the money you bring to a crowdfunding platform
You have to share a lot of documents and information publicly, so easy for competitors to get hold of
From small businesses it is a large upfront cost in time and money in creating all the video and image assets needed for the campaign
The main thing to assess when analysing a crowdfunding platform is the size of the their funding network, their funding roadshow roadmap, case studies of businesses like yours, what % they're going to charge you, what $ they're going to charge you on the money you've already raised, the minimum amount of money you need to have raised before going on the platform, confirm the use of a nominee structure, and campaign commitments before launch in terms of time and investment.
Disclaimer: Swoop Funding LLC (“Swoop”) is a financial technology platform and commercial finance broker, not a lender. Swoop does not provide loans or make credit decisions. We match US-based firms with third-party lenders, equity funds, and grant agencies. All financing is subject to lender credit approval and the specific terms and conditions of the funding provider.
Broker Compensation Disclosure: Swoop provides its platform and matching services to applicants at no direct cost. We receive compensation in the form of a commission or referral fee from the finance providers in our network upon successful placement. This compensation may vary by provider and product. In certain instances, the commission paid to Swoop may influence the interest rate or terms offered by the lender, which can affect the total amount payable under your agreement.
Credit Authorization & FCRA Notice: By submitting an application or registering an account, you provide “written instructions” to Swoop under the Fair Credit Reporting Act (FCRA) to obtain your personal and/or business credit profile from consumer reporting agencies. This information is used solely to evaluate your eligibility for financing and to match you with appropriate lenders in our network.
State-Specific Disclosures:
Florida & Utah: Swoop complies with state commercial financing disclosure laws regarding the transparency of terms for non-real estate secured commercial transactions.
Entity Information: Swoop Funding LLC is a Delaware limited liability company. US Headquarters: 43 W 23rd St, New York, NY 10010, United States. Contact: hello@swoopfunding.com
General Terms: Applicants must be 18 years of age or older. All firms must be registered and operating within the United States. SBA loans are issued by private lenders and guaranteed by the U.S. Small Business Administration; Swoop is not a government agency. Please review our Terms of Use and Privacy Policy for full details.
If you have a complaint, please refer to our Complaints Policy.
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