{"id":3493,"date":"2021-08-30T14:25:12","date_gmt":"2021-08-30T14:25:12","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=3493"},"modified":"2022-11-15T04:23:23","modified_gmt":"2022-11-15T04:23:23","slug":"venture-capital-equity-crowdfunding","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/venture-capital-equity-crowdfunding\/","title":{"rendered":"Venture Capital vs Equity Crowdfunding: Which method is better when raising funds for your business?"},"content":{"rendered":"\n

By Aneesa Ismail Rahman<\/em><\/strong><\/p>\n\n\n\n

From scaling up to gaining access to more resources, there are many reasons why a company needs to raise funds, and its goals play an important role in determining the best way for it to raise funds.<\/p>\n\n\n\n

Two of the most common methods for firms to raise financing are through Equity Crowdfunding<\/a> (ECF) and Venture Capital (VC).  Traditional types of funding methods, such as Venture Capital, provide big sums of money from a few sources, but ECF provides many modest sums of money from a large number of people. In recent years, Equity Crowdfunding has also gained popularity in Malaysia according to the Securities Commission.<\/p>\n\n\n\n

\"\"
The consistent year on year increase of Equity Crowdfunding  in Malaysia<\/strong><\/em><\/figcaption><\/figure>\n\n\n\n

Let’s compare these two methods to see how cautiously ECF and VC should be pursued. In this article, experts provide their insight and weigh in on the best type of finance for your company.<\/p>\n\n\n\n

\n
\n

Table of Contents<\/p>\n