Equity based vs. lending based crowdinvesting

Well, do you know it? If not, don’t worry, we’ll explain it in this post:

Lending based crowdinvesting (or crowdlending):

✅ Crowdlending refers to lending from one private person to another or to a company.

✅ The crowdinvestor borrows outside capital (e.g., a loan) and primarily profits from the interest they receive on their invested capital.

✅ A major advantage of crowdlending is that the loan is linked to looser financing criteria than with a traditional bank.

✅ A risk of loss with crowdlending is primarily in the event of possible insolvency of the company.

Equity based crowdinvesting:

✅ Crowdinvestor provides equity to the company.

✅ They thus become a shareholder in the company and can thus generate both profits and losses.

✅ The crowdinvestor can also benefit from dividend payments, if applicable.

✅ At CONDA.ch, the focus is on equity based crowdinvesting, i.e. equity investments (shares or participation certificates).

Learn more at conda.ch.

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