Equity crowdfunding is a way for startups and small businesses to raise capital from a large number of investors, typically via online platforms. Unlike traditional crowdfunding, where backers receive a product or perk in exchange for their contributions, equity crowdfunding allows investors to purchase shares in the company. This model opens up investment opportunities that were once reserved for venture capitalists and institutional investors, enabling everyday individuals to invest in promising startups and private companies.
Since the JOBS Act was enacted in 2012, equity crowdfunding has grown significantly in the US, providing startups with an alternative funding route while giving investors access to a new asset class. Below is a list of the top equity crowdfunding platforms in the US, each with unique offerings for companies and investors.
Top Equity Crowdfunding Platforms in the US
1. StartEngine
StartEngine is one of the largest and most well-known equity crowdfunding platforms in the US. It allows startups and small businesses to raise capital through Regulation Crowdfunding (Reg CF), Regulation A+ (Reg A+), and Regulation D (Reg D) offerings.
StartEngine recently acquired SeedInvest, another prominent crowdfunding platform, further expanding its reach and investor base. The platform has funded hundreds of startups across multiple industries and offers a secondary trading market called StartEngine Secondary, where investors can buy and sell shares in private companies.
Explore StartEngine
2. Wefunder
Wefunder is a pioneer in the equity crowdfunding space and was instrumental in advocating for the JOBS Act that made Reg CF possible. The platform caters to early-stage startups, allowing them to raise up to $5 million from accredited and non-accredited investors. Wefunder prides itself on being founder-friendly, with lower fees than many competitors and a strong emphasis on storytelling to help companies attract investors. The platform has a large and active investor community, making it a popular choice for startups looking to engage directly with their supporters. Explore Wefunder
3. Republic
Republic is a tech-driven crowdfunding platform that offers investment opportunities in startups, real estate, video games, and even cryptocurrency projects. It operates under Reg CF, Reg A+, and Reg D and has a reputation for curating high-quality deals. One of Republic’s standout features is its focus on investor education, helping individuals understand the risks and opportunities associated with early-stage investing. The platform also offers a secondary market for trading private securities, similar to StartEngine. Explore Republic
4. DealMaker
DealMaker is a crowdfunding platform designed for companies looking to raise larger amounts of capital. Unlike other platforms that focus primarily on retail investors, DealMaker specializes in Reg A+ and Reg D offerings, making it an attractive option for later-stage startups and growth companies. The platform provides a streamlined digital fundraising experience, allowing issuers to manage investor relations, compliance, and payment processing efficiently. Its technology-driven approach helps companies scale their fundraising efforts without relying on traditional investment banks or venture capital firms. Explore DealMaker
5. OurCrowd
OurCrowd is a global equity crowdfunding platform with a strong presence in the US. It primarily caters to accredited investors, offering investment opportunities in high-growth startups, deep tech, and venture capital funds. One of OurCrowd’s unique aspects is its venture capital-style approach—each investment opportunity is carefully selected and often co-invested in by OurCrowd itself. This level of involvement provides investors with a sense of confidence that the platform has a vested interest in the success of the companies it lists. Explore OurCrowd
Choosing the Right Crowdfunding Platform
For startups, selecting the right crowdfunding platform depends on factors such as the type of investors they want to attract, the regulatory framework they plan to use (Reg CF, Reg A+, Reg D), and the fees associated with fundraising. For investors, it’s important to assess platform reputation, investment opportunities, due diligence processes, and secondary market options.
We strongly recommend that founders explore multiple platforms, assess their offerings, and compare their fee structures. It is crucial to ask about in-platform marketing efforts—what kind of visibility and promotional support the platform will provide to help attract investors. Additionally, founders should carefully review disbursement terms to understand when and how funds will be released. By engaging with multiple platforms and evaluating these key aspects, you can make an informed decision that best aligns with your fundraising goals and long-term growth strategies.
