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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