Today a little look at what is and what isn’t
Hope it helps to separate the ‘wheat from the chaff!!’
- Crowd Investing is not crowdfunding!
Crowd funding usually offers something material in exchange for a consideration whereas Crowd Investing is an actual investment. An investor receives at best his invested capital and can look forward to an additional return
- Investors are the heart of any campaign!
Financing is usually through a group of a few dozen to several thousand donors. This is called a swarm funding Crowd Investing. Investors can be both private and professional investors. The only requirement is they have attained the age of majority.
- No investment without possible reward!
The incentive for investors lies with the Crowd Investing in high potential returns. As an investor invests their own capital, a company must convince them that the product or idea has sufficient potential to pay back the amount invested at a profit.
- Crowd investment risk!
There is the possibility that the lenders lose their entire investment as with any investment. On many platforms predominantly where larger sums are invested, the form of investment has been changed to a shareholding.
- Crowd Investing can be an easier way to collect money
Crowd Investing can gain in a relatively short period of time a number of funders for projects which is generally perceived as easier, than obtaining numerous, complex appointments with potential investors,
- Free PR and marketing
A company receives additional marketing with Crowd Investing through social networking
As in all things Crowd Investing depends on the company.
So now you know the yin and the yang of crowd investing why not take a look at a company that mixes real estate and crowd investing?
Go well till the next time