How Does Equity Crowdfunding investing actually work?

Once you’ve invested in the company and the offer is finalised and completed, you will become a shareholder in that company and you will be entered onto the company’s electronic share register.

Such investments are long-term.  Companies using crowdfunding to raise capital use the funds to reach their next growth target.  You are unlikley to have a chance to readily sell your investment, if at all.  You should read about the company’s ‘exit’ plans, because generally, this will be the first chance that you have to realise the gains, if any, on your investment. An exit can be in the form of an IPO, trade sale or a share buyback. 

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