Digital fundraising platforms democratize access to capital. That makes all the difference for companies and for investors. The level of institutional investor, high net worth, or large corporation dominance of the power vacuum left by investment banking is a thing of the past. Deals remained largely accessible only to the well capitalized and well connected.
However, with the likes of Seedrs, Crowdcube, and Fundrise, investment is now open to a broader investor population, including retail investors. With these sites, ordinary people can invest their pounds and pence in exciting new enterprises or real estate projects for sums of capital that would be considered pennies in normal investment banking deals. This democratization has led to a more diversified pool of investors, which helps companies seeking a broader shareholder base and brings opportunities for investors.