It starts with a great idea. Then the entrepreneur pulls in friends, family and their wider social network. Everyone pools their money together and a company is suddenly born. This company now has an entire network of people devoted to its success – and the local community ultimately benefits. In addition, society now gets a new product or service that has entered the market. Everyone wins! This simple ecosystem is facilitated through social media.
Life’s better when we’re more social
Equity crowdfunding harnesses the power of social networking to stimulate community investment, spark innovation, create jobs and generate stability, by providing a solid network of relationships, mentorship, and capital. The equity crowdfunding method increases the trust factor for the entire ecosystem because it’s transparent and compliant. Plus, people are more likely to do business with individuals they know from their community. With the added layer of trust, success is more likely.
Nowadays, just about every tweet, Instagram caption and Facebook update gets viewed by huge communities. This ‘crowd’, thanks to the power of equity crowdfunding and social networking, offers the opportunity for more people to become investors, entrepreneurs and customers.
Community vibes are key for a Canadian company
Look to our neighbours up North in Whistler, Canada at Green Moustache, who turned to equity crowdfunding for their expansion. It was important to CEO Nicolette Richer to give Whistler and community locals the
“first right to invest with the Green Moustache, instead of some person in Toronto who might not know us. We wanted our customers and our community to financially benefit from the growth of The Green Moustache given that it’s a community-based organization that’s trying to create health in the community. There’s physical health, but there’s also the concept of financial health, and this allows our customers to be financially healthy as well. If we do well, they do well. It allows our average customer to be able to invest in our company.” (source)
Companies that choose people over profit, are one of the many reasons that many are so passionate about the equity crowdfunding industry.