Private placements are relative to public offerings. Private placements are the sale of stocks to a small number of qualified investors (usually less than 35). This method can avoid registration procedures with the U.S. Securities and Exchange Commission (SEC).

Investors must sign an investment letter stating that the purchase is for investment and not for resale.

Crowdfunding has evolved from foreign crowdsourcing forms. Except for equity crowdfunding, it is generally not an investment behavior. The funds or people who may be raised to do something together will not receive money in return.