Equity crowdfunding platforms
Equity crowdfunding is the channel by which retail investors subscribe to shares in private companies. The companies are usually early-stage — pre-seed, seed, sometimes Series A — and the rounds are open to non-accredited investors at small tickets, typically from €100 to €500.
The mechanic is simple but the asset class is unforgiving. You are buying illiquid private shares. There is no public price, no daily mark-to-market and, in most cases, no exit window for many years. Returns come from a future acquisition, a secondary sale or, very rarely, an IPO.
What to check on the platform
Two structural details matter more than the marketing of any single deal: (1) shareholding structure — direct on the cap table is cleaner than nominee, though nominee is more common; (2) post-money reporting — does the platform publish quarterly updates from the company after the round closes, or does it disappear?
Composite of verified investor reviews, editorial review and regulatory standing.
- Direct equity stake in startups and growth companies.
- Possibility of co-investing with professional VCs.
- Tax incentives in some jurisdictions.
- Total loss is the most common outcome at the deal level.
- 5–10 year horizon before any exit.
- No interim cashflow.
Picking a platform in «Equity crowdfunding platforms».
Prioritise platforms with rigorous due diligence, transparent rejection rates and credible lead investors. Build a portfolio of 15+ deals — equity returns are driven by the few winners, not the average.
Frequently asked.
What is dilution and why does it matter?
When a company raises a new round, your percentage ownership shrinks. Over 4–5 rounds, dilution of 50–70 % is common — your stake at exit is much smaller than at investment.