Investors Knowledge Base
How is equity received from crowdfunding different than a Startup's stock options?
When you invest in a private company via equity crowdfunding, you own a proportionate amount of the company’s common stock. In contrast, stock options give a person (often an employee) the right to buy a certain amount of stock at a certain price after a set amount of time (usually the “vesting” period).
Startup campaigns in the Fundify Marketplace offer equity that is available for purchase and then may be held until a trigger event or exit -- such as an IPO -- or is available to sell in a secondary market.