DUK

Equity-based crowdfunding or crowdinvesting is source funding to a private company by attracting a large number of investors (the crowd) to make moderate investments in the company’s equity. In return, they receive shares in the company or a percentage of ownership. When the project is successfully realised, the revenues are distributed proportionally to the share invested by each investor. While crowdinvesting carries significant risk, it may be noticeably more profitable.