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Equity Crowdfunding (ECF)
- Fundraising with Equity
- ECF 101
- Who can raise
- Shariah Compliant ECF
- Incentives for ECF Issuers
- What is the process?
- Building Your Campaign Page
- Legal Documents for ECF
- Company Valuation
- Campaign Marketing and Promotion
- Planning Your Investor Strategy
- Marketing Do's and Dont's
- Crowd-Funded Venture Capital
- Type of shares
- Fee structure
- Nominee Structure
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Not an issuer? Go to Investors page
What Is Crowd-Funded Venture Capital (CFVC)?
Crowd-Funded Venture Capital (aka Microfunds) are Venture Capital Funds that raise a portion or the entirely of their funds through crowdfunding. To qualify as a microfund:
- Microfunds must be registered with the Securities Commission as a Venture Capital
- Microfunds can raise funds exclusively from sophisticated investors. These investors typically meet specific financial criteria, such as having a high net worth or significant annual income.
- Microfunds must have a specified investment objective. They are not restricted to investing in deals hosted on pitchIN
Difference between Venture Capital (VC) and Crowd-Funded Venture Capital (CFVC)
| Differences | Venture Capital (VC) | Crowd-Funded Venture Capital (CFVC) |
|---|---|---|
| Source of Funding | Usually sourced from institutional investors, such as pension funds, endowments, and wealthy individuals, who are referred to as Limited Partners (LPs). | Funded by a large group of individuals who invest smaller amounts of money, typically through online platforms. |
| Investment Size | Generally invest larger amounts of money, ranging from several hundred thousand dollars to tens of millions of dollars, per investment. | Investments are usually smaller, ranging from a few hundred dollars to a few thousand dollars per investor. |
| Control | Take a more active role in the companies they invest in, providing guidance, mentorship, and oversight. | Investors generally have little or no say in the management of the companies they invest in. |