Equity crowdfunding comes in two forms: Investor -led or Company-led. The former creates investor-led syndicates and has important financial benefits for investors whereas the latter benefits companies by providing cheaper money with less stringent due diligence. Investor-led platforms such as AngelList and SyndicateRoom create syndicates around lead investors who negotiate the investment terms with the company, invest their own money and then allow online investors to join the syndicate of investors. Company-led platforms such as Crowdcube and Seedrs are marketplaces for companies to raise finance on their own terms. Companies will naturally push to get the best possible valuation for themselves coupled with as limited rights as possible for investors. Depending on which side of the fence you are on (investing or raising finance), one model will be better than the other for you. This great article by Stephen Wilmot sums up the differences – ‘one model is for fun, the other for investment’.