crowd equity

Crowd equity is a method where a startup or business raises money by selling small ownership stakes—called shares—to many individuals through online platforms. This allows everyday people to invest directly in the company's growth, similar to buying stock in a publicly traded company but often on smaller, specialized platforms. In return for their investment, these shareholders may earn dividends if the company profits and can benefit if the company's value increases. Crowd equity democratizes investment opportunities, enabling a broader range of people to support and participate in the success of emerging businesses.