Under equity crowdfunding, the amount invested or capital contributed is held in an escrow account until fundraising is closed.
Once the fundraising target is reached, documentation is completed to allocate shares per share value to the various contributors or investors before funds are transferred to the particular business.
When the minimum target amount to be raised is not reached upon closure, capital contributions or amounts invested are returned to the capital contributors or investors.
Investments through equity crowdfunding are available with businesses under vetted business, model business or holding company categories.
The business entity is profiled with details including name of business, nature of business, location of business, legal status, ownership structure, capital required, minimum investment amount and expected return on investment.