Lower level of risk than an investment on the financial markets, higher return on investment than standard financial investments… many are the reasons that motivate investors to invest their savings in innovative and promising projects thanks to crowdfunding! It is undoubtedly a way to invest differently by giving a financial boost to growing companies.
Profitable investment thanks to crowdfunding
Crowdfunding or participative financing in French, is above all a new mode of investment or more precisely an investment 2.0 for individuals. What makes this type of financing special is that it is really profitable with a more interesting level of return than traditional investments such as savings books or life insurance, i.e. returns that can go up to 12% annually. It is just necessary to make sure that the project selected via the crowdfunding platform is qualified as innovative and promising in order to minimize the level of risk and of course to optimize the return on investment (ROI). So, instead of letting your savings sleep, why not invest part of it in crowdfunding projects for attractive ROI?
Much lower level of risk
When you want to invest in something, you have to keep in mind that you will never be safe from potential risks. So investing with crowdfunding is not without risk, given that not all the projects you want to finance will necessarily be promising. Of course, the companies that you are going to support financially are generally start-ups in the start-up or development phase or SMEs that have the project to develop their activity. However, with equity financing, the level of risk is rather minimal compared to investing in the stock market. This is because crowdfunding platforms have nowadays become more and more strict in terms of project selection and this is why they are attracting more and more investors. The real objective of these platforms is of course to minimise the failure rate of selected projects as much as possible, in order to reassure investors as much as possible.
Why not finance several projects at the same time?
In addition to being accessible to everyone, the crowdfunding platform offers investors access to a whole range of projects that are of course carefully selected. You will therefore have the choice of many sectors in which to invest. You are therefore free to choose the company that is closest to your heart. And you can even invest small amounts to start with, for example €20 per project. This will allow you to finance several projects at the same time without increasing the level of risk.