# Equity Crowdfunding

*Regulation & Compliance — Finicade finance glossary*

Equity crowdfunding lets ordinary investors buy shares in early-stage private companies through a registered portal, with limits scaled to income.

Equity crowdfunding lets ordinary investors buy shares in early-stage private companies through a registered portal, with annual investment limits scaled to income. It opened private markets beyond accredited investors, and it inherits their risk profile without their diligence resources. Secondary liquidity is minimal, so positions are typically held until an exit that most companies never reach.

**Also known as:** Reg CF, regulation crowdfunding, crowdfunding portal

**Related terms:** [Regulation D](https://finicade.com/glossary/regulation-d), [Accredited Investor](https://finicade.com/glossary/accredited-investor), [Angel Investor](https://finicade.com/glossary/angel-investor), [Securities Act of 1933](https://finicade.com/glossary/securities-act-of-1933), [Disclosure](https://finicade.com/glossary/disclosure)

Source: https://finicade.com/glossary/equity-crowdfunding