Investments of the Future: How Crowdfunding, Crowdinvesting, and PRE-IPO Are Changing the Game for Startups

Have you ever wondered how a simple thought turns into action? How does a small spark of an idea grow into something big, something capable of changing the world?

This is one of the most intriguing puzzles in neuroscience: how our thoughts, desires, and dreams translate into actions. How what was once just a concept in someone's head can eventually become, for example, a startup capable of capturing the market and attracting billions of dollars.

Here’s an example: a person comes up with an idea – say, to create revolutionary solar panels. They think, “Wouldn’t it be cool if every home could generate its own energy?” They share this with friends, who respond, “Great idea, but where do we get the money?”

That’s when the real journey of an entrepreneur begins. The world of startups isn’t just about ideas. It’s a world where you’re constantly searching for resources, breaking through barriers, and convincing people that your idea is worth their attention.

Here’s an interesting, though fairly well-known fact: our brain is so plastic that it can create new neural connections as soon as we start taking action. The same happens with entrepreneurs. An idea that today might seem like a bold dream could tomorrow become a global business. But for that to happen, it’s not enough to just think — you need to act.

The main barrier for most startups is money.

How to Choose the Right Financing Tool?

Bank loans are almost inaccessible for young companies, venture funds demand a stake in the business and full control, and private investors expect quick profits and tough terms.

But there are alternative financing mechanisms that are changing the game, although it’s important to choose the one that fits your business:

• Crowdfunding – money from thousands of "small" investors. If you need seed capital, want to test a product, or attract your first customers.
• Crowdinvesting – a chance for private investors to become co-owners of the company. If you need to scale but want to maintain control over the company.
• PRE-IPO – raising capital before going public. If the startup is at a late stage but lacks funds before the IPO.

Today, these tools are not just trends but proven mechanisms that can change the fate of your business.

Let’s break down each tool in detail using examples.

An Example of Startup Financing

Imagine you’re the founders of EcoEnergy (our fictional startup), a company developing revolutionary solar panels for private homes. Your product can cut electricity bills by three times! Customers are thrilled, and test samples show excellent results. The only problem is — there’s no money for scaling.

Take out a loan? The bank will ask, “What guarantees do you have?”
Attract venture investors? They’ll want too much control over the company.
Use personal funds? Unfortunately, they’re insufficient.
Solution? Look for alternative ways to finance.

PRE-IPO: How to Raise Money Before Going Public

Taking a startup public (IPO) is the dream of most founders. It’s not just about the money — it’s about status, publicity, and proof of success.

What is it?

PRE-IPO is the process of raising funds from private investors before a company officially goes public on the stock market. It’s a kind of preparation before an IPO (public offering of shares), during which the company sells a portion of its capital to private investors to raise money for growth.

How does it work for EcoEnergy (our fictional startup)?

Imagine your startup has already gone through several stages of development. You’ve conducted research, created a prototype, and even started testing the product with early customers. Large investors have taken notice, but before going public, you decide to conduct a PRE-IPO.

What does this give you?

• You attract funding from large private investors and venture funds.
• You sell part of your shares before going public, gaining capital for growth.
• You minimize risks associated with the uncertainty of an IPO.

Advantages of PRE-IPO for EcoEnergy

1. Risk Reduction

   Suppose during the IPO, the company’s shares might not meet expected demand, causing their price to drop. With a PRE-IPO, your company has already raised funds, minimizing potential financial losses.

2. Testing Demand

   If there’s insufficient interest from investors during the PRE-IPO phase, you’ll have time to adjust your strategy before entering the stock market.

3. Entering the Market from a Strong Position

   The more successful the PRE-IPO stage, the higher the likelihood that the company will receive maximum valuation during the IPO.

What happens next?

In 2025, our company EcoEnergy sells 20% of its shares for $15 million to large venture funds and private investors through a PRE-IPO. This money is used to increase production and develop new models of solar panels.

Two years later, when the startup goes public, its shares become highly sought after on the stock exchange, and early investors see a multiple return on their investments.

In the real world, Alibaba used this mechanism — before its 2014 IPO, the company raised $150 billion in a PRE-IPO, and after going public, its shares rose by 48%. Facebook faced falling stock prices after its IPO. If it hadn’t had early investors, it could have incurred massive losses.

Conclusion: PRE-IPO is your financial cushion before making a big splash in the world.

Do you want to attract investments but don’t know where to start? We do.

Get a Consultation

Equity Crowdfunding: Investments from "Small" Investors

What is it?

Equity crowdfunding is a mechanism that allows startups to raise capital from a large number of small investors. Unlike traditional crowdfunding, where backers simply receive a product or acknowledgment, here they become co-owners of the company.

This tool is especially popular among young companies that want to maintain independence from large venture funds but still need the necessary capital to grow.

How does it work for EcoEnergy?

In 2025, the startup EcoEnergy faces a key challenge – scaling production. The first batch of solar panels passed successful testing, demand for the product is growing, but without additional investment, production won’t reach the required volumes.

The solution? Equity crowdfunding.

EcoEnergy launches a campaign on the Crowdcube platform, offering investors the opportunity to purchase stakes in the company starting at $500. This allows even small investors to become part of a promising tech business.

What happened next?

• In 48 hours, the startup raised $1.2 million.
• More than 3,000 private investors received a share in the business.
• The money went towards mass-producing the first series of solar panels.
• The startup not only secured funding but also gained a loyal audience – investors became the first buyers and brand ambassadors.

Two years later, when the company goes into PRE-IPO, its valuation increases fivefold, and early investors who put in $500 see their stake grow ten times in value.

Advantages of equity crowdfunding

• Access to funding: the ability to raise up to $1 million from numerous small investors.
• No dependence on venture funds: the startup receives funding without pressure from major players.
• Marketing effect: every investor becomes your ambassador.

Real success stories

• Monzo (UK) raised £1 million in 96 seconds through Crowdcube in 2016. Today, its valuation stands at £4.5 billion.
• BrewDog attracted £73 million through equity crowdfunding, transforming from a small brewing startup into a global giant.

Conclusion: Equity crowdfunding is not just a way to raise capital. It’s an opportunity to build a community of investors who not only invest money but also help the company grow.

Crowdinvesting: When Everyone Can Become a Shareholder

What is it?

Crowdinvesting is a method of raising money where private investors buy shares in a company with the expectation of future growth. It’s a riskier approach than crowdfunding, but if things go well, investors can earn multiple returns.

How does it work for EcoEnergy?

After the successful launch of the first batches of solar panels and the equity crowdfunding campaign, the startup EcoEnergy faces a new challenge — international expansion.

Demand for the product is skyrocketing, and requests are coming in from clients in Europe and the U.S. EcoEnergy realizes it’s time to enter the global market, but it needs $5 million to scale production and develop a logistics network.

The solution? Crowdinvesting.

How does it happen?

In 2026, EcoEnergy launches a crowdinvesting campaign on the SeedInvest platform. The company offers private investors the chance to acquire a stake in the business, starting with investments of $5,000. This attracts not just hobbyists but serious investors interested in long-term profits.

What happens next?

• In three months, the startup raised $5.5 million.
• The average investor check was $10,000.
• The company managed to open offices in Europe and the U.S.
• Crowdinvestors became not just investors but brand ambassadors, helping with international promotion.

Two years later, during the PRE-IPO phase, the company’s valuation increases fivefold. Early investors earn a 7x return when EcoEnergy goes public and its shares become highly sought after on the stock exchange.

Real success stories

• Oculus VR (creators of virtual reality headsets) started with $2.4 million through Kickstarter and were later acquired by Facebook for $2 billion.
• Revolut attracted early investments through Seedrs and is now valued at $33 billion.

Conclusion: Crowdinvesting allowed EcoEnergy to raise millions of dollars for development while maintaining control over the business and making investors part of its success.

Which Platforms Will Help You Attract Investments?

So, we’ve understood which financing tools startups can use – from crowdfunding to PRE-IPO. Now let’s answer the main question: where do you find this money?

In the past, if you wanted to find an investor, you had to spend weeks sitting in venture capital offices, meeting wealthy business angels, and convincing them to believe in your idea.

Today, it’s much simpler: there are specialized platforms where startups can reach thousands of investors at once. These are like “idea exchanges,” where companies present themselves, and investors choose who to back financially.

But not every platform suits every startup.

• If you have a tech startup, SeedInvest is your best choice.
• If you want to enter the European market, try Crowdcube.
• If your project is aimed at a broad audience, WeFunder is an excellent solution.

But how do you navigate all of this and choose the right path? Simply registering on a platform isn’t enough. We help startups walk this path.

Act Now!

Call us

+1 (702) 204-6388

Write to us

Submit a request on our website

Request a consultation