Get All Access for $5/mo

Who Is Equity Crowdfunding Right For? Co-founder of crowdfunding platform RocketHub, Alon Hillel-Tuch, explains what is involved in raising money for and investing in a startup with equity crowdfunding.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Equity crowdfunding is a totally different ballgame than traditional crowdfunding.

In our third episode of Crowdfund with Cat, we explore what kind of entrepreneurs would be best suited to raise money with equity crowdfunding and who should be considering investing in startups through equity crowdfunding.

The considerations for participation surrounding equity crowdfunding are more complex and nuanced than they are for more traditional donation based crowdfunding.

Alon Hillel-Tuch, a co-founder of the crowdfunding platform RocketHub, is our superstar guest. He talks finance without the jargon. (Hallelujah!) RocketHub was acquired by entrepreneurship resource center EFactor a year ago. Since then, Hillel-Tuch has left and is now a partner at the venture building group, Stacked VB.

The rules and regulations surrounding equity crowdfunding changed on May 16. For a deeper analysis of how the rules changed, check out our series of written stories on equity crowdfunding (linked to below).

Starting May 16, Entrepreneurs Can Raise Money in a Whole New Way. Here's What You Need to Know.

An Entrepreneur's Essential Guide to the New Wild West of Funding Opening on May 16

Your Guide to the High-Risk, High-Reward World of Investing in Startups When Fundamental Finance Law Changes Go Into Effect May 16

Which Entrepreneurs Will Benefit Most From the New Era of Crowdfunding?

Next Generation Crowdfunding Starts May 16. Expect Opportunity and Growing Pains.

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Growing a Business

How to Build, Grow and Make Money With Ecommerce

To grow your online business, you need to develop a strategy and invest your time wisely. These actionable tips can attract customers and increase online revenue.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.