Hedge funds, angel investors and venture capitalists know that the way to make big money on their investments is to invest in startups before they go public. By the time most people are investing in these companies on the stock market, early investors are already exiting with full pockets.

But what about those among us who have neither the knowledge nor the means to invest in startups via traditional channels? That’s where equity crowdfunding comes into play, and it’s the biggest step toward global financial democratization the investing industry has ever seen.

The phrase “democratization of finance” refers to a slow-moving process wherein control of the finance industry is removed from the wealthy few and distributed among the general public. By bringing an entirely new population of investors into the fold, the equity crowdfunding industry is achieving just that.

However, even an industry known for its pioneering spirit isn’t infallible, and financial democracy isn’t a given in equity crowdfunding. In fact, in many ways, the industry still favors those who have a good amount of cash on hand and can afford the gamble. This rules out a large subsection of those interested in investing, including people of color who historically have less consumer buying power than their white counterparts.

So, how can we widen the equity crowdfunding umbrella?

One of the questions I’m most frequently asked as a professional crowdfunder is directly related to financial democracy: How can investors and founders in the equity crowdfunding space broaden the umbrella when access to capital still isn’t equitable?

Read the full article about equity crowdfunding by Krishan Arora at Forbes.