equity crowdfunding agent
Information by Research TrustFinance
The term "equity crowdfunding agent" refers to a regulated entity, often known as a "funding portal" or a broker-dealer, that operates an online platform to connect businesses seeking capital with investors. Their mission is to democratize investment in early-stage companies by allowing the general public, not just accredited investors, to purchase equity in private ventures. These agents perform due diligence on the companies raising funds, process investment transactions, and must comply with securities regulations (such as the SEC's Regulation Crowdfunding in the U.S.) to ensure investor protection. They generate revenue primarily through commissions on the funds raised.
United States
Industry
- FundraisingPRIMARY
- Other Service
Financial