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Crowdfunding Investing Projects – What are they and are they for you?

Crowdfunding Investing

Crowdfunding Investing – Is it New?

Crowdfunding investing is a relatively new term. To many this is a new method to invest in a project or venture. The method has been around for hundreds of years with modern technology making it available to many more people. The term crowdfunding began growing online in technology, music and arts circles in the year 2000, when the band Marillion funded a tour that was a huge success.

Crowdfunding Investing

 

Kickstarter was founded in 2009 and has become the most popular platform to discover and invest in crowdfunding opportunities.  If you wish to review the type and variety of available opportunities visit www.kickstarter.com.

 

How does it work?

  1. A crowdfunding campaign sets itself a financial target needed to fund the project and a deadline for it to be reached
  2. People pledge money towards the project
  3. If the target figure is reached within the period, the pledges go live, investing the agreed amounts
  4. The project receives the funds and aims to meet its specified aims and objectives

 

What projects are available?

Some projects provide investors with equity in the project and/or company. Others provide products to the investors. Some do both.  More recently many charitable and environmental causes have used crowd funding to fund projects.

 

Who invests in Crowdfunded projects?

Crowdfunding Investing

Many investors of differing age, wealth and aims have pledged and invested in crowdfunded projects.  For many people it is an exciting investment, or a way to get early access to a new product or opportunity.

Many celebrities have used crowdfunding as a way to fund projects and a way to invest their money.  The British media have recently been commenting on Andy Murray’s passion in investing in small projects and helping startups that might not get funded through other means.

 

Should you invest in Crowdfunding Projects?

If you are considering it as a long-term investment, it might be better to consider all your options and consider all available products before deciding that crowdfunding is best for your money, however as part of an investment portfolio, or as a way to get specific products, these investments are proving more and more popular.

 

Contact Us for more information, or if you have an questions.