What is crowdinvesting?

Crowdinvesting and Crowdfunding

At first glance, crowdinvesting is similar to crowdfunding and in fact they have identical principles. However, there are important differences. Let's see what's wrong.

Crowdfunding is attracting investment in the project from the crowd. At the same time, investors do not receive a share in the project, but only symbolic preferences. To be honest, crowdfunding appeared a long time ago and was originally intended to raise funds for charitable or artistic projects. There was no other way to raise money for them.

Among the important crowdfunding projects are Notre-Dame-de-Paris or, for example, Beethoven’s works, where investors could hear the works of a brilliant composer.

In crowdinvesting funds also come from the crowd. But at the same time, each investor receives a share in the project. This term appeared in 2009 as a modern and convenient way to attract investments in startups.

What is purpose of investing?

Motivation to participate in equity investments may be different. Someone is attracted by the idea and he is ready to invest money in it to help the project be realized. Others are interested in investing money in order to sell their share of a more expensive one when the project starts.

One of the important areas of business for crowd investment today are natural resources, manufacturing and development. Investments can attract organizations on their own, or companies specializing in similar businesses like Monethera can. In this case, a team of business and financial analysts, conducts a detailed analysis of projects and makes a decision on investment attractiveness. Selected projects are offered to the general public.

How popular is this tool? Highly. If in 2013 the equity investment market was estimated at $ 400 million, in 2018 it crossed over $ 4.5 billion. And according to expert estimates, it plans to grow to $ 8 billion by 2023*.