Equity crowdfunding allows startups and small businesses to raise funds from a wide range of investors by offering them a stake in the company. This method democratizes the investment process, enabling anyone to invest in early-stage ventures, not just accredited investors. Investors contribute funds through online platforms, and in return, they receive equity shares which may provide dividends or a return on investment when the business grows or is sold. The growth of equity crowdfunding has been facilitated by regulatory changes in various countries that allow such fundraising to occur under specific guidelines, ensuring some level of investor protection.