Equity crowdfunding is a method of raising capital where a company offers shares to a large number of investors, typically through online platforms. This approach allows startups and small businesses to access funding from the general public, democratizing the investment process and enabling individuals to invest in companies they believe in. Investors in equity crowdfunding receive ownership stakes in the company, which can lead to potential financial returns if the business succeeds. This model has gained popularity due to its ability to connect entrepreneurs with a broader base of potential investors, fostering innovation and growth in various industries.