Crowdinvesting vs. Crowdfunding – what is the difference?
Could you explain in one sentence what crowdfunding or crowdinvesting means? Here you can find out in a nutshell.
The dictionary already sums it up well. Not without reason, crowdfunding is also called swarm financing.
This financing model is primarily used by start-ups, companies, artists, but also increasingly by private individuals to finance projects. In the process, the public is called upon to collectively finance a project. Many small amounts from many investors enable the projects to be financed. In return, the investors receive a goodie bag or material goods, are allowed to test the products before anyone else or certain privileges.
Crowdinvesting is a form of crowdfunding, where the many investors participate financially or economically in the project. The crucial difference between crowdfunding and crowdinvesting, however, is that in the latter the consideration of the capital recipient is not in the form of material goods or privileges, but in the form of interest. Optionally, depending on the amount of their capital investment, the investors can also participate directly in the profits of the company.
Want to learn more about crowdinvesting and other cool insights from the world of crowdfunding? Comment below this post which topic interests you and we’ll include it. Otherwise, you can expect weekly new posts with important information about this topic clearly and understandably explained.