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.

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