Equity crowdfunding, still an industry in its infancy, ultimately offers a marketplace where investors can search for high quality, pre-vetted deal flow and entrepreneurs can get in front of accredited investors.

Equity crowdfunding platforms such as Onevest streamline the current offline process of raising funds where entrepreneurs might spend 6+ months combing their networks, researching which investors may be a fit, and spending countless amounts of time, money, and effort to just get in front of them.

By utilizing equity crowdfunding, entrepreneurs enjoy many benefits, including:

  • Access to numerous accredited investors at their fingertips
  • A consolidated profile to showcase company information and documentation
  • PR/Marketing
  • Validation of concept
  • Ability to spend more time running their business as opposed to fundraising

Up until recently, the world of investing in private companies has only been available to a gated community of 8.7 million individuals who are classified as accredited investors (less than 1% of the US population). However, once the JOBS Act is fully implemented in (hopefully) early 2014, equity crowdfunding will allow non-accredited investors to invest in private offering as well and have the opportunity to get in early on what could be the next Facebook, Dropbox, or Airbnb startup.

Accredited or not, equity crowdfunding on Onevest is an asset to investors in the following ways, both now and before the JOBS Act is fully implemented:

  • Access to startup investment deal flow
  • Pre-vetted companies that are required to undergo a variety of identity authentication and legal business checks
  • Ability to hedge risk by investing low minimums and diversifying their portfolios
  • Crowdsourced due diligence on the companies

The overall potential of equity crowdfunding is huge. According to the Crowdfund IQ report, over 58% of the U.S. population have a high interest in potentially making an investment via equity crowdfunding platforms. Also, findings from a Kauffman study and the Wall Street Journal estimate the combined friends and family/angel startup investments made in the U.S. to be a market of approximately $120 billion.

Whether you are an entrepreneur in the process of raising a round of funding to grow your business, or an investor seeking potential high return opportunities, equity crowdfunding platforms such as Onevest are great avenues to explore.