Crowdinvesting – attracting investments in a startup. It has a low entry threshold for the investor. Crowdinvesting platforms work with both individuals and legal entities. For a startup, this is an easy opportunity to make yourself known and attract investment in your project.
Crowdinvesting was a popular and promising direction a few years ago. Such an easy opportunity to attract investment, of course, interested scammers of all stripes. The niche was very tightly chosen by them, which is why investors eventually lost interest in such platforms. Not to say that the niche has sunk into oblivion, but the former excitement is gone. In addition, at that time, investors were also lured away by the dawn of ICOs in the crypto world.
Now there are only a few large crowdfunding platforms that have already passed the test of time and inspire confidence among investors. They can really invest in worthwhile and advanced ideas in technology and other areas.
Sometimes simple guys with just one idea collect huge sums for the implementation of their project, and sometimes serious projects cannot collect the minimum amount to start work. It is very difficult now to guess the preferences of investors.
After the high-profile scams, there are practically no such sites left on the territory of the post-Soviet space. And those that remain are more like platforms for lending to businesses or something like that. Probably the time of crowdinvesting platforms has already passed and investors are gradually switching to other more interesting instruments.
What is crowdinvesting (equity crowdfunding)?
Crowdinvesting (from the English Crowdinvesting, where Crowd is a crowd, accumulations and investing is investment), is sometimes called equity crowdfunding – a financing method that implies a form of investment in which the investor expects relatively high returns if the company is selected successfully, but at the same time is aware of the possible high risks of such an investment. The most common way to invest money is through traditional banks, mutual funds, or brokerage firms such as Charles Schwab & Co., Inc. However, individuals can also directly invest in small companies, real estate and other businesses using online stock trading platforms such as those offered by Etrade Group, Inc. Individuals can also pool their resources with other investors to fund larger investments such as mortgages, college education, business expansion, and other ventures. Crowdfunding should not be confused with microfinance or microcredit, which are forms of financial assistance targeted at developing countries and people living below the poverty line.
Advantages of crowdinvesting:
- access of private investors to promising projects;
- low minimum investment amounts;
- attracting a large number of individual investors;
- low financial barriers to entry;
- both parties benefit from this form of investment as borrowers and donors support each other;
- many investors invest in the project directly, without intermediaries;
- short time;
- high return potential.
- risk of complete financial loss;
- early termination is not possible;
- does not affect business decisions.
Womens professional softball in crowdinvesting
Crowdinvesting (equity crowdfunding) is one of the financial instruments for attracting investment capital to young start-ups and small businesses from a wide range of micro-investors.
For example, Softball is a sports team game with a ball, a kind of baseball. A softball is about the size of a grapefruit, softer than a baseball, and slower in flight. Softball is played by both men and women. There are several varieties of the game: “Fast pitch” – “Fast pitch”, “Slow pitch” – “Slow pitch”, “Modify pitch” – “Average pitch”. The Olympic discipline from 1996 to 2008 was the fast pitch game among women’s teams.
In many countries where baseball is common, softball is also popular, as it is preferred by non-professionals. Differences in softball from baseball are aimed at reducing injuries and adapted to the lower physical capabilities of athletes.