Equity crowdfunding offers the company’s securities to a number of potential investors in exchange for financing. Each investor is entitled to a stake in the company proportional to their investment. Equity Crowdfunding is a method adapted slowly in the startup industry where a group of investors can fund startup companies or small businesses in return for a share in equity. It is similar to any other kind of investment in shares for a company, the only difference being that it can be done online without much hassle.