The historical way for raising equity for development projects would be to work with a high net worth individual, private equity funds or family office and you would end up in a situation where you would either accept the terms the investor put to you or you wouldn’t. The investor is in a strong position for dictating terms to developers.

With crowdfunding, what a developer is able to do is to put an offer together and investors can decide whether or not they want to invest in that offer. This also works well for smaller investors as they can put smaller amounts in and spread their investments across multiple projects.