Definition
Crowdsourced equity funding (CEF) is the form of crowdfunding where investors receive equity in the company. It changes how a round is priced, who owns what, or whether an investor leans in. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Crowdsourced equity funding (CEF)?” The useful answer is concrete: form of crowdfunding where investors receive equity in the company. A slide title is not an answer.
Common mistake
Using Crowdsourced equity funding (CEF) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Convertible note
A short-term loan that converts into equity at a later priced round.
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Crowdfunding
Method of raising capital from a large number of people via online platforms.
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Earnings per share (EPS) dilution
Reduction in EPS caused by issuing additional shares of stock.
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Growth Capital
Funding provided to established companies for expansion and scaling operations.
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